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%. Oil prices dropped 1.01% to $77.60 per barrel and gold fell 0.97% to $1,872.30 per ounce.
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. 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%.
On Friday, the University of Michigan is scheduled to release the results of its preliminary consumer sentiment survey for February at 10 a.m.  Economists anticipate that the index will increase from 64.9 in January to 65 in February. Traders may also focus on the inflation readings of the report.
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-