Wall Street tumbles as yields jump; Verizon slides
For a Reuters live blog on U.S., UK and European stock markets, click LIVE/ or type LIVE/ in a news window.
Verizon down after missing Q3 revenue estimates
GE Aerospace drops as supply constraints drag on revenue
General Motors up after Q3 results beat estimates
Indexes down: Dow 0.36%, S&P 500 0.38%, Nasdaq 0.28%
Updated at 09:50 a.m. ET/ 1350 GMT
By Lisa Pauline Mattackal and Purvi Agarwal
Oct 22 (Reuters) - U.S. stock indexes sagged on Tuesday as rising Treasury yields impacted rate-sensitive sectors, while investors evaluated earnings to assess the health of American companies.
Verizon VZ.N was the biggest decliner on the blue-chip Dow after the telecom giant missed estimates for third-quarter revenue with a 4.9% loss.
Adding to losses, Dow heavyweight3M MMM.N slipped 0.6%, reversing its premarket gains, despiteraising the lower end of its full-year adjusted profit forecast.
The Dow Jones Industrial Average .DJI fell 153.09 points, or 0.36%, to 42,778.51, the S&P 500 .SPX lost 22.04 points, or 0.38%, to 5,831.94, and the Nasdaq Composite .IXIC lost 52.19 points, or 0.28%, to 18,487.82.
Pressuring equities, U.S. Treasury yields rose as investors assessed theimpact of the upcoming presidential election on fiscal policy. They also waited to gauge the effect of arobust economy on the Federal Reserve's policy trajectory. MKTS/GLOB
The yield on the benchmark 10-year note US10YT=RR rose as high as 4.222%, continuing a steady climb since early October, after a bumper jobs report led investors to dial back expectations for the central bank toease interest rates throughthe year.
Rate-sensitive megacap stocks slipped, with Apple AAPL.O falling 1.2% and Nvidia NVDA.O down 0.5%, weighing on the broader tech sector .SPLRCT, which lost 0.3%.
Consumer Discretionary shares .SPLRCD were bogged down by a 1% and 0.6% decline in Tesla TSLA.O and Amazon.com AMZN.O, respectively.
Stocks retreated from record highs on Monday as investors took a breather following six consecutive weeks of advances for major indexes, even as gains in Nvidia helped the Nasdaq edge higher.
"We set all these new highs with a sense of nervousness. That's for three primary reasons: a lot of conflicts around the world at the moment, the Fed and what they're going to do next and the election... (have) people a bit more unsure of what's next," said J.J. Kinahan, CEO, IG Group North America.
The next few weeks are likely to be volatile for equity markets, as investors scrutinize company earnings, fresh economic data and the results of the U.S. election, followed by a central bank meeting.
Traders are pricing in an 89.6% chance of a 25-basis-point interest-rate cut in November, according to CME's FedWatch.
GE Aerospace GE.N fell 6.3% despite raising its profit forecast for 2024, as persistent supply constraints impacted its revenue, highlighting the difficulty some companies may face in trying to impress investors this year.
It pulled the broader Industrials index .SPLRCI 1% lower.
General Motors GM.N gained 7.3% after the legacy carmaker's third-quarter results beat Wall Street estimates, while LockheedMartin LMT.N dipped 4% after results.
Baker Hughes BKR.O and Texas Instruments TXN.O are scheduled to report earnings afterthe bell.
Estimated third-quarter year-over-year earnings growth for the S&P 500 is 6.5%, excluding the Energy sector .SPNY, and 4% overall, according to LSEG data.
Theeconomically sensitive small-cap Russell 2000 .RUT lost 0.4%.
Declining issues outnumbered advancers by a 1.81-to-1 ratio on the NYSE, and by a 1.6-to-1 ratio on the Nasdaq.
The S&P 500 posted five new 52-week highs and two new lows, while the Nasdaq Composite recorded 25 new highs and 25 new lows.
U.S. Stocks, Bonds, and the Fed https://tmsnrt.rs/3A5Uqr2
Reporting by Lisa Mattackal and Purvi Agarwal in Bengaluru; Editing by Pooja Desai and Shounak Dasgupta
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
