S&P 500 ends higher as markets weigh rising yields, upbeat corporate
results
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[April 25, 2024] By
Chibuike Oguh
NEW YORK (Reuters) -Benchmark S&P 500 closed higher in choppy trading on
Wednesday, as investors weighed an uptick in Treasury yields amid
positive corporate results particularly from technology giants.
An auction of a record $70 billion worth of five-year U.S. Treasury
notes on Wednesday helped to push bond yields higher and had weighed on
equities. The benchmark 10-year Treasury note rose five basis points to
4.6459%.
The Dow finished lower while the Nasdaq ended higher. Seven out of 11
S&P 500 sectors made gains led by stocks in consumer staples, utilities,
consumer discretionary and real estate.
Investors were also focused on quarterly earnings from companies,
especially from megacap growth stocks. Shares of Meta Platforms fell 11%
in extended hours trading after the tech giant reported that its capital
expenditure could reach up to $40 billion in 2024, even as its first
quarter revenue beat estimates.
Microsoft and Alphabet are scheduled to report their results later this
week.
Tesla jumped 12% after the electric vehicle maker's plans to boost
production and roll out more affordable models overshadowed its weak
quarterly results.
"My biggest concern is the bond market, particularly the long end of the
U.S. yield curve," said Bill Strazzullo, chief market strategist at Bell
Curve Trading in Boston.
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The S&P 500 gained 1.08 points, or 0.02%, to 5,071.63 and the Nasdaq
Composite gained 16.11 points, or 0.10%, to 15,712.75. The Dow Jones
Industrial Average fell 42.77 points, or 0.11%, to 38,460.92.
Markets are eyeing first quarter gross domestic product data on Thursday
and personal consumption expenditures (PCE) for March on Friday.
Hotter-than-expected consumer price inflation report for March had
pushed back expectations of when the Fed will begin cutting interest
rates.
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People walk around the New York Stock Exchange in New York, U.S.,
December 29, 2023. REUTERS/Eduardo Munoz/File Photo
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Shares of Boeing fell 2.8% after the planemaker reported its first
quarterly revenue drop in seven quarters, even though the result
beat analyst expectations.
Solar inverter maker Enphase Energy dropped 5.5% after projecting
second-quarter revenue below analysts' estimates.
Texas Instruments climbed 5.6% after the chipmaker forecast
second-quarter revenue above analysts' estimates. The Philadelphia
Semiconductor Index closed higher as most chip stocks rallied.
Drugmaker Biogen gained 4.5% after it beat first-quarter profit
expectations, while Boston Scientific rose 5.7% after the medical
device maker raised its annual profit forecast.
Hasbro climbed nearly 12% after the toymaker reported a
smaller-than-expected drop in first-quarter sales and handily beat
profit estimates.
Declining issues outnumbered advancers by a 1.33-to-1 ratio on the
NYSE. There were 80 new highs and 50 new lows on the NYSE. On the
Nasdaq, 1,903 stocks rose and 2,316 fell as declining issues
outnumbered advancers by a 1.22-to-1 ratio.
The S&P 500 posted 11 new 52-week highs and four new lows, while the
Nasdaq recorded 55 new highs and 120 new lows.
Volume on U.S. exchanges was 10.2 billion shares, compared with the
11.07 billion average for the last 20 days.
(Reporting by Chibuike Oguh in New York; additional reporting by
Shristi Achar A and Shashwat Chauhan in Bengaluru; Editing by
Marguerita Choy)
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