From Nasdaq: 2024-04-18 14:24:32

US stock indexes are moderately lower, with the S&P 500 down -0.24%, the Dow down -0.05%, and the Nasdaq down -0.42%. Better-than-expected economic reports boosted the market earlier, along with strong quarterly earnings from Elevance Health and DR Horton. Chip stocks weakness, rising T-note yields, and geopolitical risks in the Middle East are impacting stocks. Initial unemployment claims remained unchanged at 212,000. The Apr Philadelphia Fed business outlook survey rose unexpectedly to a 2-year high of 15.5. Mar existing home sales fell -4.3%, Mar leading indicators fell -0.3%. NY Fed President Williams stated there’s no urgency to cut interest rates. Markets are discounting chances for a rate cut at the upcoming FOMC meetings. Overseas markets are higher, with Euro Stoxx 50 up +0.49%, China’s Shanghai Composite up +0.09%, and Japan’s Nikkei up +0.31%.

Interest rates are under pressure, with June 10-year T-notes down -10 ticks and the 10-year T-note yield up +4.3 bp. The 10-year German bund yield is up +2.8 bp, while the 10-year UK gilt yield is down -0.8 bp. The Bundesbank sees a slight increase in German Q1 growth. ECB Executive Board member de Guindos suggests easing monetary policy restrictions if CPI targets are met. Eurozone Mar new car registrations fell -5.2%, while Feb construction output rose +1.8%.

Stock movers include Genuine Parts Co (GPC) up over +11%, Elevance Health (ELV) up over +5%, and DR Horton (DHI) up more than +3%. Meta Platforms (META) is up over +3%, while Equifax (EFX) is down more than -3% after reporting earnings. Chip stocks are under pressure for a second day, impacting technology stocks. NXP Semiconductors NV (NXPI) and other chip stocks are down by more than -1%. Earnings reports are due for Blackstone Inc (BX), Comerica Inc (CMA), DR Horton Inc (DHI), and others on 4/18/2024.



Read more at Nasdaq: Stocks Give Up Early Gains and are Now in the Red