U.S. stock indexes opened higher on Wednesday, with the S&P 500 on course for its fourth consecutive all-time high after a batch of well-received earnings showed a healthy corporate America which could impact the outlook for interest rates.
How are stock indexes trading
-
The S&P 500
SPX
was adding 26 points, or 0.5%, to 4,889 -
The Dow Jones Industrial Average
DJIA
was rising 116 points, or 0.3%, to 38,028 -
The Nasdaq Composite
COMP
was up 118 points, or 0.8%, to 15,543
On Tuesday, the Dow industrials fell 0.3%, to 37,905, the S&P 500 increased 0.3%, to 4,865, and the Nasdaq Composite gained 0.4%, to 15,426.
What’s driving markets
Technology stocks were leading Wall Street higher again on Wednesday morning, after Netflix
NFLX,
jumped 9.9% following the streaming giant’s results that got the technology sector earnings season off to a good start.
“Although Netflix is not one of the Magnificent 7, it is still seen as a bellwether for the tech sector, and the health of the U.S. consumer,” said Kathleen Brooks, research director at XTB.
With the S&P 500 sitting at record levels, some investors feel it has become increasingly important that the earnings and forecasts of such high-profile names are well-received by the market.
“Strong Netflix results will likely give a positive spin to the major U.S. indices,” said Ipek Ozkardeskaya, senior analyst at Swissquote Bank.
Earnings reports remain a focus of traders on Wednesday with some tech heavyweights such as Tesla
TSLA,
IBM
IBM,
and Lam Research
LRCX,
due to report the results after the closing bell.
See: A key Tesla metric is ‘under threat.’ Wall Street will soon learn more.
Meanwhile, broader support for the market was coming from Treasurys, where the 10-year yield
BX:TMUBMUSD10Y
was dipping to once again to trade around 4.088%.
The bond benchmark appears to have found equilibrium around that level following a rollercoaster ride in recent months, suggesting investors have become more relaxed about inflation, economic growth and the market’s pricing of the Federal Reserve’s policy trajectory.
Potential catalysts for bonds on Wednesday include the S&P flash U.S. services and manufacturing PMI reports due for release at 9:45 a.m. Eastern, and the Treasury’s auction of $61 billion of 5-year notes at 1 p.m.
Finally, global risk appetite was boosted in late Asian trading after China’s central bank said it would boost liquidity by reducing the reserves banks need to hold, sparking a second day of sharp gains for Chinese equities.
Companies in focus
-
Shares of AT&T Inc.
T,
-2.85%
dropped 3.7% on Wednesday after the telecom company reported $16.8 billion in free cash flow for last year, above its prior increased forecast of roughly $16.5 billion. -
Abbott Laboratories’
ABT,
-3.12%
stock fell 2.8% after the healthcare-products company reported fourth-quarter sales that topped expectations amid strength in its medical-device and nutrition segments, even as COVID-test sales continued to plunge. -
Shares of DuPont de Nemours Inc.
DD,
-13.12%
tumbled 13.3%, toward their worst day in nearly four years, after the materials science company issued a profit warning, as the weaker demand seen at the end of 2023 is expected to continue.
