U.S. stocks fell on Wednesday as investors read the loon on a rate cut and weighed new earnings reports for insight into a possible comeback fueled by American companies.
The Dow Jones Industrial Average (^DJI) fell 0.1% (about 50 points) and the S&P 500 (^GSPC) fell 0.4%. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, fell by about 0.6%.
Stocks have posted a series of gains in recent days, but some of the gains came as Federal Reserve policymaker Neel Kashkari signaled that interest rates are likely to remain at historic highs for some time. I lost momentum. Comments by the Minneapolis Fed president that there was no chance of a rate hike also dashed hopes for early easing that other Fed speakers had been pushing. Fed officials Lisa Cook and Philip Jefferson are scheduled to speak Wednesday.
There was also uncertainty about corporate performance, and some investors held back as the season entered its final stages. While the technology industry has largely lived up to high expectations, the focus is now on whether other sectors can match them.
In a filing Wednesday, forecasts for Uber's key booking metrics were off the mark, sending the company's stock down nearly 7%. Shopify (SHOP) stock fell as much as 19% after the e-commerce platform predicted quarterly sales growth would be the slowest in two years.
Fox's (FOXA) earnings are going to be in the spotlight after Disney (DIS) won in profits but still missed Wall Street's expectations. After hours, quarterly updates from AMC Entertainment (AMC) and Robinhood (HOOD) will be watched for signs of a meme stock-like rally.
Live3 update
Tesla slides after receiving Justice Department investigation report
Tesla (TSLA) stock has soared after Reuters reported that Tesla is investigating whether the company “misled investors and consumers about the self-driving capabilities of its electric vehicles” and committed securities and wire fraud. Tesla (TSLA) stock fell nearly 3% on Wednesday morning.
According to Reuters, the Justice Department said CEO Elon Musk and others have suggested that cars equipped with Tesla's Full-Safe Driving System could potentially drive themselves without the need for human intervention. , reported that they are specifically investigating whether the driver was misled.
Stock prices start falling, yields rise.
U.S. stocks fell on Wednesday as investors read the loon on a rate cut and weighed new earnings reports for insight into a possible comeback fueled by American companies.
The Dow Jones Industrial Average (^DJI) fell 0.1% (about 50 points) and the S&P 500 (^GSPC) fell 0.4%. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, fell by about 0.6%.
Meanwhile, the 10-year US Treasury yield (^TNX) edged up from its three-week low to 4.49%.
Wednesday, May 8, 2024, 7:28 a.m. EDT
Reddit Quarterly, Digest Edition
There's a lot to digest from last night's Reddit (RDDT) quarter. But a 13% pre-market increase makes sense to me.
The company achieved adjusted operating profit margin for the first time. Compared to rivals like META, capital expenditures are unusually low. Sales overseas are also accelerating. Advertising market comments were positive. And the company has made important changes to the way its platform operates, which is partially contributing to Google's rankings.
I applaud Reddit's leadership team for starting the earnings call with questions from the community. Maybe this is something Boeing (BA) management should do…
