Stocks fell Wednesday as corporate earnings weren’t strong enough to assuage investor fears of rising interest rates and a global recession. Tesla (TSLA) and apple (AAPL) shares both fell in late afternoon trading.
The Nasdaq Composite was down 0.5% and the S&P 500 was down 0.1%. The Dow Jones Industrial Average was flat. The Russell 2000 index of small caps was also flat.
NYSE and Nasdaq volumes fell relative to the same time on Tuesday.
The stock has traded on pace for a fourth straight day on the Nasdaq and a fifth straight day on the S&P 500.
The benchmark 10-year Treasury yield fell 11 basis points to 3.42%.
Crude fell 2.7% to $72.25 a barrel.
All 11 sectors of the S&P were mixed on Wednesday, trading within 1% up or down.
We now see a 74.7% chance that the Federal Reserve will raise interest rates by 0.5% at next week’s meeting. A 75 basis point rate hike is 25.3% likely, according to the CME FedWatch tool.
Stock Market Falls as Technology, Consumer Discretion Slide
Mortgage applications were down 1.9% for the week, but productivity in the revised third quarter was up 0.8% more than expected. Unit labor costs rose 2.4% less than expected in the third quarter.
“If 2022 was about recognizing economic imbalances and starting to address them, 2023 will be about preparing for what comes next as the economy and markets find their way back to a more stable footing. We believe it will continue to grow — even if the adjustment period continues,” Barry Gilbert, asset allocation strategist at LPL Financial, said in the company’s 2023 outlook released Wednesday. increase.
The S&P Bank ETF (KBE) fell nearly 6% last week, suggesting that overly aggressive rate hikes could trigger a recession. However, the ETF flipped higher in afternoon trading.
bank of america (BAC) fell another 0.7% after falling 4.3% along with several other big banks on Tuesday.
Toll Industries (THO) reported earnings for the first quarter of 2023, surpassing views earlier Wednesday. But the stock fell more than 2% as demand for RVs appeared to recede from its pandemic highs.
Lithium shares rose on Wednesday as spot prices for lithium carbonate in China, the largest EV market and giant user of lithium, climbed to a record $84,000 a ton in November. The Benchmark Minerals Lithium Price Index has soared more than 180% over the past year. Precious metals were around 560,000 yuan, or $79,500, per tonne this week in China, which handles most of the world’s lithium refining.
lithium strains SQM (square meters) and Albemarle (ALB) Climbed both.
Stock market movers and shakers
Consumer discretionary stocks led the decline, with Tesla down 4% and Apple down 1.6%.
campbell soup (CPB) jumped nearly 6% after the company easily beat earnings estimates. It reported earnings of $1.02 per share, beating Wall Street consensus expectations of 87 cents per share. The stock is currently extending beyond the buy zone from the handle cup buy point of 51.73.
discount retailers Ollie’s Bargain Outlets (OLLI) plummeted more than 18% after falling short of earnings forecasts for the quarter ending October.
exxon mobil (XOM) fell 0.2%, heading for its fifth consecutive decline after breaking out of buying zone from the 105.67 entry. It is currently below the 50-day moving average.
meme stock game stop (GME) plunged 4% ahead of third-quarter earnings after Wednesday’s closing bell. Analysts expect another quarterly loss. Losses are projected to widen to $1.37 per share in 2023.
Cheap stocks to buy and watch: 5 stocks to watch right now
Earnings on Deck: Costco, Lululemon, Broadcom
gun maker Smith & Wesson brand (SWBI) plummeted 17% to a two-year low. According to FactSet, the company reports that his October quarter sales and earnings were lower than expected.
Pinterest (PINS) reversed losses and rose 0.1% after the social media platform reported that it had struck a long-term cooperation agreement with activist fund Elliott Investment Management. The deal includes the appointment of Elliott’s senior portfolio manager, Mark, to Steinberg’s board of directors.
Costco (price), lululemon (lulu) and broadcom (AVGO) is expected to report earnings on Thursday.
Costco shares are below the 50-day line as retailers continue to fall sharply.
The Innovator IBD 50 ETF (FFTY) rose 0.1%, partly boosted by biotech earnings. Intracellular therapy (ITCI) and cosmetics retailers ultra beauty (ULTA).
Ulta stock stretches past the buy point of 426.99 from cups with handles.
Follow Michael Molinsky on Twitter @IMmolinski
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