Market Upturn Stalls as Fed Chair Makes Remarks; Disney Stock Jumps on Positive Earnings
By U.S. stock markets saw a downturn on Wednesday as investors focused on remarks from Federal Reserve Chair Jerome Powell, resulting in the Dow Jones Industrial Average closing 0.73% lower, the S&P 500 down 0.88%, and the Nasdaq Composite slipping 1.02%.
The 10-year Treasury yield (US10Y) rose 6 basis points to 3.75%, while the 2-year yield (US2Y) edged up 2 basis points to 4.53%.[0] Oil prices dropped 1.01% to $77.60 per barrel and gold fell 0.97% to $1,872.30 per ounce.[1]
Among active stocks, Lyft (LYFT) plunged on weak guidance and Tesla (TSLA) climbed more than +3% on signs that recent price cuts are spurring demand for the company’s electric vehicles.
So far, 63% of S&P 500 companies have reported fourth-quarter earnings results.[2] Fundstrat reported that 68% of companies have surpassed profit estimates by an average of 6%, and 63% have exceeded revenue projections with a median of 4%.[1]
On Friday, the University of Michigan is scheduled to release the results of its preliminary consumer sentiment survey for February at 10 a.m.[0] [3] Economists anticipate that the index will increase from 64.9 in January to 65 in February.[3] Traders may also focus on the inflation readings of the report.[3]
Following the announcement of a restructuring plan, which includes 7,000 job losses and $5.5 billion in cost savings, Disney (DIS) experienced a surge in pre-market trading of more than +6% after reporting Q1 revenue of $23.51 billion, higher than the expected $23.39 billion. Meanwhile, Walt Disney (DIS) stock leapt 6% in premarket trade.
Overall, investors will continue to watch the market closely, looking for the best stocks to buy and watch in the ongoing strength of the market rally.
0. “Nasdaq, S&P, Dow look for direction, set to end lower for the week on Fed concerns” Seeking Alpha, 10 Feb. 2023, https://seekingalpha.com/news/3934862-nasdaq-sp500-dow-jones-stock-market-fed-earnings
1. “Stock market news today: Rising interest rates help spoil early gains” Markets Insider, 9 Feb. 2023, https://markets.businessinsider.com/news/stocks/stock-market-news-today-rising-interest-rates-highest-level-november-2023-2
2. “Dow closes nearly 250 points lower, Nasdaq sheds 1% as Alphabet shares slide: Live updates” CNBC, 9 Feb. 2023, https://www.cnbc.com/2023/02/08/stock-market-futures-open-to-close-news.html
3. “US Stocks Look Set To Steepen Losses For Week As Nasdaq, S&P Futures Plunge – Invesco QQQ Trust, Series 1” Benzinga, 10 Feb. 2023, https://www.benzinga.com/news/earnings/23/02/30851938/us-stocks-look-set-to-steepen-losses-for-week-as-nasdaq-s-p-futures-plunge-focus-on-inflation-data-
