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US STOCKS-Nasdaq, S&P muted as higher bond yields weigh

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Author Carroll Tipton
Comments 0 Views 3 Date 24-10-29 16:42

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Elevance Health up after Q1 profit beat

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Tesla falls after DB downgrades to 'hold'

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Indexes: Dow up 0.39%, S&P up 0.08%, Nasdaq down 0.08%

(Updated at 9:51 a.m. ET/1351 GMT)

By Shashwat Chauhan and Shristi Achar A

April 18 (Reuters) -

The benchmark S&P 500 and the Nasdaq were subdued on Thursday as higher Treasury yields pressured equities, while investors digested commentary from Federal Reserve officials to ascertain the outlook for interest-rate cuts.

Data showed the number of Americans filing new claims for

unemployment benefits

was unchanged at low levels last week, pointing to continued labor market strength.

U.S. Treasury yields continued to move higher after the data, with yield on the 10-year note last at 4.6223%.

Meanwhile, New York Fed President

John Williams

said there's no pressing case to lower interest rates right now.

"Most of the data this week shows the economy is still firing on all cylinders. That's going to be a challenge for the Fed´s rate-cutting plans, and it could continue to weigh on the stock market rally," said Chris Larkin, 온라인카지노 managing director, trading and investing at E*TRADE from Morgan Stanley.

The S&P 500 and the Nasdaq are poised to log their fifth straight day of losses as investors remained jittery about the Fed's interest-rate outlook.

Money markets are now pricing in about 40 bps of rate cuts this year, down from around 150 bps seen at the start of the year, according to LSEG data.

Investors will now keenly listen to remarks from Atlanta Fed President Raphael Bostic later in the day.

Adding to losses, Tesla slipped 3.1% after Deutsche Bank downgraded its rating on the stock to "hold" from "buy".

Some upbeat earnings updates, however, cushioned losses, with

D.R. Horton up 3.2% after the U.S. homebuilder raised its annual revenue forecast as tight housing supply boosted sales.

Alaska Air Group gained 2.6% after forecasting current-quarter profit above estimates.

Elevance Health

added 4.1% after the health insurer reported quarterly profit above Wall Street estimates and slightly raised its annual earnings forecast.

At 9:51 a.m. ET, the Dow Jones Industrial Average was up 145.40 points, or 0.39%, at 37,898.71, the S&P 500 was up 4.26 points, or 0.08%, at 5,026.47, and the Nasdaq Composite was down 12.80 points, or 0.08%, at 15,670.57.

Of the 11 S&P 500 sectors, three traded in the red, with information technology amongst top losers with a 0.3% dip.

Among other stocks, Las Vegas Sands Corp lost 8.0% after brokerages cut their price targets on the casino operator due to weakness in its Macau operations.

Advancing issues outnumbered decliners by a 1.45-to-1 ratio on the NYSE. Declining issues outnumbered advancers for a 1.20-to-1 ratio on the Nasdaq.

The S&P index recorded one new 52-week high and seven new lows, while the Nasdaq recorded eight new highs and 125 new lows. (Reporting by Shashwat Chauhan and Shristi Achar A in Bengaluru; Editing by Pooja Desai, Arun Koyyur and Maju Samuel)

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