Stock Market Today: Dow Falls to Weekly Loss Amid Surging Yields, Mixed Earnings
Dow Slumps as Treasury Yields Surge and Earnings Report Mixed Results
The stock market had a challenging week as the Dow closed with a loss due to a surge in Treasury yields and mixed quarterly corporate earnings. Investors were cautious as they weighed the impact of these factors on the market.
- The Dow fell 0.9% or 286 points
- The S&P 500 dropped 1.5%
- The Nasdaq fell 1.3%
Treasury Yields Take a Breather After Recent Sharp Jump
Treasury yields pulled back after reaching a more than 16-year high. Federal Reserve Chairman Jerome Powell reassured investors that rates would remain higher for an extended period. However, he also hinted at the possibility of further rate hikes if the economy continues to outperform expectations.
Stifel noted that Powell’s comments indicated a willingness to take action if the strength of the economy, labor market, and consumer demand continue to show positive signs.
Energy Stocks Dragged Lower by Schlumberger and Falling Oil Prices
Energy stocks, including EQT Corporation, Halliburton Company, and APA Corporation, faced pressure from falling oil prices. Despite ongoing tensions in the Middle East that threatened oil production, these stocks suffered due to the decline in oil prices.
Schlumberger NV also contributed to the sector’s decline, reporting lower-than-expected revenue, causing its shares to drop by 2%.
American Express and Regional Banks Lead Financials Lower
American Express reported quarterly results that beat expectations, but concerns about tougher comparisons ahead caused its shares to fall by more than 5%. Regions Financial Corporation also disappointed investors, with its Q3 results missing Wall Street estimates, resulting in a more than 12% drop in its shares. Evercore ISI attributed the negative outlook to weaker net interest margin, funding costs, and rising credit pressure.
Knight-Swift Rallies as Wall Street Praises Earnings Beat
Knight-Swift Transportation narrowed its full-year earnings guidance, surpassing estimates and signaling a potential turnaround in the freight industry. Goldman Sachs raised its price target on the company, reflecting optimism about its performance.
Hewlett Packard Enterprise Falls on Disappointing Guidance
Hewlett Packard Enterprise shares declined by more than 6% after the company provided lower-than-expected adjusted EPS guidance for 2024. Goldman Sachs also noted that the company revised its EBIT growth outlook for 2023 downwards due to targeted investments in accelerating its growth businesses.
Despite the challenges faced by the stock market this week, investors remain hopeful for positive momentum in the coming weeks.