S&P 500 up as investors weigh first-quarter results
NEW YORK - The 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%.
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 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.
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 for March on Friday. A hotterthan-expected consumer price inflation report for March had pushed back expectations of when the Federal Reserve will begin cutting interest rates.
Shares of Boeing fell after the airplane maker reported its first quarterly revenue drop in seven quarters, even though the result beat analyst expectations.
Solar inverter maker Enphase Energy dropped after projecting secondquarter revenue below analysts’ estimates.
Texas Instruments climbed after the chipmaker forecast second-quarter revenue above analysts’ estimates. The Philadelphia Semiconductor Index closed higher as most chip stocks rallied.
Hasbro climbed 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.