Today on Wall Street, there’s a sense of stagnation as the stock market shows little movement despite recent volatility. The S&P 500 is holding steady in early trading, poised for a fourth consecutive day of mixed and uneventful performance. This comes after a week of subdued activity, following a notable turnaround that led to the market’s best week of the year.
Although the recent market shifts have been modest, an upward close for the S&P 500 today would mark its ninth consecutive gain, representing the longest winning streak in 19 years. The Dow Jones Industrial Average is up by 11 points, less than 0.1%, as of 9:40 a.m. Eastern time, while the Nasdaq composite remains virtually unchanged.
The Walt Disney Co. is standing strong, experiencing a 6% rise after surpassing analysts’ expectations for the latest quarter’s profits. The company reported exceeding projections for Disney+ streaming subscribers and raised its annual cost savings target.
Tapestry is another notable gainer, jumping 5.1% after beating Wall Street’s profit forecast. On the flip side, Becton Dickinson faced a 9.7% decline. Although the medical equipment manufacturer met Wall Street’s profit expectations for the summer, its financial outlook for the upcoming fiscal year fell short of some analysts’ estimates.
Lyft is also contributing to the market’s weight, sinking 3.4%, despite outperforming analysts’ expectations for summer results. Despite positive earnings reports from many companies, the focus in financial markets remains on bond yields.
The 10-year Treasury yield increased slightly to 4.53% from 4.50% late Wednesday, following a report indicating a robust U.S. job market. While this is positive news for workers and the economy, it could contribute to upward pressure on inflation, a concern the Federal Reserve is trying to address through higher interest rates.
The swift rise in the 10-year Treasury yield earlier this summer had previously led to a more than 10% decline in the S&P 500. However, last week, comments from Fed Chair Jerome Powell suggested a potential halt to further interest rate hikes, leading to a significant easing in Treasury yields and a subsequent rally in stocks.
This week, financial markets are grappling with the aftermath of these sharp movements. In the oil market, crude prices are recovering some of their earlier losses, with U.S. crude adding 1.4% to $76.36 and Brent crude gaining 1.4% to $80.66. Despite these gains, both remain down approximately 5% for the week, reflecting concerns about supply surpassing demand.
Internationally, stock indexes in Europe and Asia are mostly higher, with Japan’s Nikkei 225 rising 1.5% after Prime Minister Fumio Kishida announced a decision against calling an election before the end of the year.
Featured Image: Unsplash @ Chenyu Guan