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The
yield on the benchmark 10-year Treasury note climbed to its
highest levels since late 2008 as a selloff in U.S. government
bonds resumed, adding another hurdle for stock markets
attempting to break out of months of declines.
Wall Street's three main indexes have notched two straight
session of gains on the back of solid quarterly results from big
U.S. banks, but they are still deep in bear market territory.
While some gauges of the equity market's health showed that the
latest rally in U.S. equities may be the start of a sustained
move higher, many investors are awaiting signs of cooling
inflation.
Apple Inc fell 1% in premarket trading after a report of iPhone
14 Plus production cut within weeks of starting shipments, while
other growth stocks Tesla Inc, Amazon.com and Alphabet Inc
struggled to gain, rising just 0.2% to 0.3%.
Netflix jumped 12.5% after it attracted 2.4 million new
subscribers worldwide in the third quarter, more than double the
consensus forecast, and guided for 4.5 million additions by year
end.
"Netflix is the latest tonic for battered bulls," said Elsa
Lignos, global head of FX Strategy at RBC Capital Markets.
Netflix's subscriber turnaround also lifted stocks of rival
streaming companies. Warner Bros Discovery, Walt Disney and Roku
gained between 1.6% and 2.7%.
"In recent days, two themes of European energy relief coupled
with 'better-than-expected' Q3 earnings relief have taken hold,
though it is still too early to judge and the bulk of big
earnings releases don't come until next week."
Analysts have cut their third-quarter profit expectations for
S&P 500 companies to just 2.8%, from an 11.1% increase forecast
at the start of July, according to Refinitiv data.
At 7:31 a.m. ET, Dow e-minis were down 135 points, or 0.44%, S&P
500 e-minis were down 19.75 points, or 0.53%, and Nasdaq 100
e-minis were down 62.5 points, or 0.56%.
United Airlines Holdings Inc gained 6.3% as the U.S. carrier
posted its strongest quarterly earnings in three years.
(Reporting by Ankika Biswas and Shreyashi Sanyal in Bengaluru;
Editing by Sriraj Kalluvila and Arun Koyyur)
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