Chibuike Ogu
NEW YORK (Reuters) – The index closed higher in choppy trading on Wednesday as investors weighed rising Treasury yields against positive corporate results, especially from technology giants.
An auction of a record $70 billion of five-year U.S. Treasuries on Wednesday helped push up bond yields and weighed on stocks. The benchmark 10-year Treasury note rose five basis points to 4.6459%.
The Dow closed lower and the Nasdaq closed higher. Seven of the 11 sectors that make up the S&P 500 index posted gains, led by consumer staples, utilities, consumer staples and real estate.
Investors were also focused on companies’ quarterly earnings, especially large-cap growth stocks. Shares of Meta Platforms (NASDAQ:) fell 11% in extended trading after the tech giant said its capital expenditures could reach $40 billion in 2024, although its first-quarter revenue topped estimates.
Microsoft (NASDAQ:) and Alphabet (NASDAQ:) are scheduled to report their results later this week.
Tesla (NASDAQ:) shares jumped 12% after the electric vehicle maker’s plans to increase production and introduce more affordable models overshadowed its weak quarterly results.
“My biggest concern is the bond market, especially the long end of the U.S. yield curve,” said Bill Strazullo, chief market strategist at Bell Curve Trading in Boston.
The S&P 500 added 1.08 points, or 0.02%, to 5,071.63 and the S&P 500 added 16.11 points, or 0.10%, to 15,712.75. It fell 42.77 points, or 0.11%, to 38,460.92.
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Markets are awaiting first-quarter gross domestic product data on Thursday and personal consumption expenditure (PCE) data for March on Friday. A hotter-than-expected March consumer inflation report has sidelined expectations about when the Fed will start cutting interest rates.
Boeing (NYSE:) shares fell 2.8% after the planemaker reported its first quarterly revenue decline in seven quarters, although the result beat analysts’ expectations.
Shares of solar inverter maker Enphase Energy (NASDAQ:) fell 5.5% after forecasting second-quarter revenue below analysts’ estimates.
Texas Instruments (NASDAQ:) shares jumped 5.6% after the chipmaker forecast second-quarter revenue above analysts’ estimates. The Philadelphia Semiconductor Index closed higher as shares of most chip makers rose.
Drugmaker Biogen (NASDAQ:) rose 4.5% after it beat first-quarter earnings expectations, while Boston Scientific (NYSE:) rose 5.7% after the medical device maker raised its forecast. annual profit.
Hasbro (NASDAQ:) shares rose nearly 12% after the toy maker reported a smaller-than-expected drop in first-quarter sales and easily beat profit estimates.
Declining issues outnumbered advancing ones on the NYSE by a ratio of 1.33 to 1. There were 80 new highs and 50 new lows on the New York Stock Exchange. On the Nasdaq, 1,903 stocks rose and 2,316 fell as decliners outnumbered advancers by a 1.22-to-1 ratio.
The S&P 500 posted 11 new 52-week highs and four new lows, while the Nasdaq posted 55 new highs and 120 new lows.
Volume on US exchanges was 10.2 billion shares, compared with an average of 11.07 billion over the past 20 days.