US close: Stocks finish flat as investors digest earnings, rising bond yields

(Sharecast News) - US stocks finished broadly flat on Wednesday after a turbulent trading session, with eyes firmly fixed on corporate results as earnings season gets into full swing. "Wednesday saw a back-and-forth session for traders grappling with the challenge of rising US yields amid encouraging earnings reports," said Stephen Innes, managing partner at SPI Asset Management.

All three Wall Street's main indices were swinging between gains and losses for the majority of the day, with the Dow finishing down 0.11%, the S&P 500 edging 0.02% higher and the Nasdaq rising 0.10%.

Rising bond yields were also keeping a lid on stocks' gains, with the 10-year US Treasury yield up 4 basis points at 4.646%, as it continues to teeter at levels not seen since November.

In economic news, US durable goods orders rose by slightly more than expected last month. According to the US Department of Commerce, in seasonally adjusted terms durable goods orders grew at a month-on-month pace of 2.6% in March (consensus: 2.5%). However, the prior month's gains were revised lower, from a preliminary print of 1.4% to 0.7%.

Meanwhile, mortgage applications fell by 2.7% week-on-week in the seven days ended 19 April, trimming the 3.3% increase from halfway through the month to mark the sharpest weekly decline since early February, according to the Mortgage Bankers Association of America. Last week's decline in mortgage applications came as mortgage rates jumped 11 basis points to 7.24% amid hotter-than-expected economic data and stubborn inflation led to sharp selling pressure for US Treasuries.

Earnings from social media heavyweight Meta were scheduled after the close, while numbers from Intel and Microsoft are out on Thursday evening. Also due out on Thursday will be on a first reading for US gross domestic product in the first quarter. Consensus is that the economy expanded at a quarterly annualised pace of 2.5%, down on 3.4% at the end of 2023.

"Investors are bracing for significant macroeconomic challenges ahead, particularly with the release of first-quarter GDP data on Thursday and March's personal consumption expenditures on Friday. The unexpected surge in consumer price inflation for March has shifted expectations regarding the timing of potential interest rate cuts by the Fed," Innes said.

Market movers

Earnings were again the main topic of conversation early on Wednesday after electric carmaker Tesla missed both top and bottom lines expectations last quarter but said it would now begin to focus more on "more affordable" vehicles, causing shares to surge 12%.

Boeing shares dropped 3% despite posting lower-than-expected losses and higher revenues, after revealing that it burned through $3.9bn in cash in the first quarter.

Toymaker Hasbro posted a smaller-than-expected drop in Q1 sales and easily beat profit estimates on the back of leaner inventories and steady digital gaming revenues, causing shares to jump 12%.

Chipmaker Texas Instruments surged 6% after smashing forecasts with earnings of $1.20 a share, compared with the $1.07 consensus estimate.

Dow Jones - Risers

Coca-Cola Co. (KO) $61.55 1.50% Walmart Inc. (WMT) $59.87 1.32% Apple Inc. (AAPL) $169.02 1.27% International Business Machines Corporation (CDI) (IBM) $184.10 1.05% Procter & Gamble Co. (PG) $162.60 0.68% Nike Inc. (NKE) $94.64 0.66% Intel Corp. (INTC) $34.50 0.64% JP Morgan Chase & Co. (JPM) $193.08 0.49% Chevron Corp. (CVX) $163.57 0.44% Dow Chemical Co. (DOW) $56.98 0.42%

Dow Jones - Fallers

Boeing Co. (BA) $164.33 -2.87% Home Depot Inc. (HD) $333.01 -1.77% Walgreens Boots Alliance, Inc. (WBA) $17.81 -1.33% 3M Co. (MMM) $92.02 -1.05% Johnson & Johnson (JNJ) $148.53 -0.69% Verizon Communications Inc. (VZ) $39.49 -0.53% Travelers Company Inc. (TRV) $213.43 -0.42% Goldman Sachs Group Inc. (GS) $423.04 -0.23% Amgen Inc. (AMGN) $273.01 -0.19% Salesforce.Com Inc. (CRM) $276.19 -0.18%

S&P 500 - Risers

Hasbro Inc (HAS) $65.03 11.85% Wabtec Corp. (WAB) $163.38 10.04% Boston Scientific Corp. (BSX) $72.89 5.68% Texas Instruments Inc (TXN) $174.81 5.64% Microchip Technology Inc. (MCHP) $90.68 5.21% Synchrony Financial (SYF) $45.02 5.04% Biogen Inc (BIIB) $201.99 4.56% Msci Inc. (MSCI) $464.65 4.18% LKQ Corporation (LKQ) $43.28 3.91% Hilton Inc (HLT) $204.70 3.89%

S&P 500 - Fallers

Fortive Corporation (FTV) $76.12 -5.76% CenturyLink Inc. (LUMN) $1.29 -5.15% Masco Corp. (MAS) $69.74 -4.48% Gen Dynamics Corp. (GD) $281.53 -3.97% Netflix Inc. (NFLX) $555.12 -3.92% Gap Inc. (GPS) $20.11 -3.83% Humana Inc. (HUM) $316.00 -3.66% Norfolk Southern Corp. (NSC) $236.22 -3.60% Nvidia Corp. (NVDA) $796.77 -3.33% Macerich Co (MAC) $15.64 -3.10%

Nasdaq 100 - Risers

Tesla Inc (TSLA) $162.13 12.06% Hasbro Inc (HAS) $65.03 11.85% Texas Instruments Inc (TXN) $174.81 5.64% Microchip Technology Inc. (MCHP) $90.68 5.21% Biogen Inc (BIIB) $201.99 4.56% Analog Devices Inc. (ADI) $196.50 3.46% JD.com, Inc. (JD) $28.27 2.61% Skyworks Solutions Inc. (SWKS) $101.12 1.83% Marriott International - Class A (MAR) $244.06 1.82% Applied Materials Inc. (AMAT) $196.06 1.46%

Nasdaq 100 - Fallers

Netflix Inc. (NFLX) $555.12 -3.92% Nvidia Corp. (NVDA) $796.77 -3.33% CSX Corp. (CSX) $33.67 -3.02% Liberty Global plc Series C (LBTYK) $16.77 -2.92% Liberty Global plc Series A (LBTYA) $16.25 -2.69% American Airlines Group (AAL) $13.92 -2.18% Fiserv Inc. (FI) $152.27 -2.02% Ulta Salon, Cosmetics & Fragrance Inc. (ULTA) $410.83 -2.01% J.B. Hunt Transport Services Inc. (JBHT) $164.48 -1.84% Mercadolibre Inc. (MELI) $1,370.00 -1.79%