Wall Street stocks open lower after companies’ lackluster earnings reports

NEW YORK (Reuters) – US stocks opened lower on Wednesday after a handful of companies reported lackluster earnings reports, while 10-year US Treasury note yields hit a seven-month peak.

AT&T fell 4.1%, dragging the S&P 500 index, after the US No. 2 wireless carrier’s quarterly results missed estimates. Chipotle Mexican Grill plummeted 14.8% after the burrito chain posted disappointing sales and earnings.

Earnings still have gotten off to a strong start, with 72.1% of 165 S&P companies beating profit expectations as of Wednesday.

In late-morning trading, the Dow Jones Industrial Average fell 72.9 points, or 0.31%, to 23,368.86, the S&P 500 lost 12.4 points, or 0.48%, to 2,556.73, and the Nasdaq Composite dropped 26.63 points, or 0.4%, to 6,571.80.

US long-dated Treasury yields rose to multi-month highs, boosted by a strong US durable-goods report, optimism about tax reform and the upcoming announcement of President Donald Trump’s nominee to head the Federal Reserve.

Benchmark 10-year note yields hit a seven-month high, last falling 12/32 in price to yield 2.4481%, from 2.406% late on Tuesday.

The 30-year bond yield rose to a five-month peak, last losing 23/32 in price to yield 2.9599%, from 2.923% late on Tuesday.

“If you look across what has happened the last seven to 10 days, there has been additional traction on tax reform, which has clearly put some upward pressure on rates,” said Bill Northey, chief investment officer at US Bank Wealth Management in Helena, Montana.

The dollar turned flat against a basket of currencies following data that showed domestic new-home sales unexpectedly reached a near-decade high in September.

The dollar index fell 0.13%, with the euro up 0.45% to $1.1812.

The Japanese yen strengthened 0.20% versus the greenback to 113.68 per dollar, while sterling was last trading at $1.3248, up 0.87% on the day.

Sterling got a boost after data showed Britain’s economy picked up speed in the third quarter, bolstering the case for the Bank of England to raise UK interest rates next week for the first time in more than a decade.

MSCI’s gauge of stocks across the globe shed 0.29%.

MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.14% higher, while Japan’s Nikkei lost 0.45%. The pan-European STOXX 600 hit its lowest level in nearly four weeks, down 0.5%.

MSCI’s benchmark emerging-market stocks index rose 0.2% after two days of losses, with Indonesian and Indian bourses hitting all-time highs.

Euro-zone government bond yields rose on Wednesday a day ahead of a European Central Bank meeting at which it is expected to signal a reduction in its bond-buying scheme, gradually withdrawing postcrisis stimulus.

Oil steadied near a four-week high after top exporter Saudi Arabia said it was determined to end a supply glut that has weighed on the market for three years.

US crude fell 0.46% to $52.23 per barrel, and Brent was last at $58.49, up 0.27% on the day.

Spot gold dropped 0.1% to $1,275.26 an ounce.