From Nasdaq: 2024-05-08 18:51:20

US stock indexes closed mixed on Wednesday with the S&P 500 unchanged, the Dow Jones up +0.44%, and the Nasdaq down -0.04%. Hawkish Fed comments and higher bond yields weighed on stocks, but upbeat earnings results from Vistra Corp, Lyft, and Arista Networks provided some support. Uber, Match Group, and Broadridge Financial Solutions were among the decliners.

Q1 earnings are exceeding expectations with a projected +6.5% y/y climb, well above the original estimate of +3.8%. Boston Fed President Collins’ comments hinting at a need for sustained policy until inflation reaches 2% tempered market optimism. US MBA weekly mortgage applications rose +2.6%, while Mar wholesale trade sales unexpectedly fell -1.3% m/m.

Overseas, Euro Stoxx 50 and US markets reached 1-month highs as China’s Shanghai Composite and Japan’s Nikkei closed lower. Interest rates rose as 10-year T-note yield climbed to 4.492%. European bonds also saw increases with Germany’s bund yield at 2.462%. ECB Governing Council member Wunsch discussed the challenges of maintaining tight policy.

In US stock movers, Vistra Corp, Arista Networks, Emerson Electric, Louisiana-Pacific, and Reddit saw gains while Uber Technologies, Match Group, Broadridge Financial Solutions, Electronic Arts, and ZoomInfo Technologies experienced declines. Many top stocks like Lyft and International Flavors & Fragrances climbed after reporting better-than-expected earnings. Tesla faced a -1% dip following reports of a probe into potential misleading claims.

Various companies including Akamai Technologies, Constellation Energy Corp, Insulet Corp, and Warner Bros Discovery Inc reported earnings on 5/9/2024. The markets exhibit cautious optimism with projections for limited rate cuts and potential hurdles due to rising bond yields and inflation concerns.



Read more at Nasdaq: Stocks Waver on Higher Bond Yields and Mixed Corporate Earnings