As earnings season gained momentum and Treasury yields increased to multiyear highs, stocks fell on Wednesday.
With 289 points lost, or 0.9%, the Dow Jones Industrial Average fell. As compared to the Nasdaq Composite, the S&P 500 fell 1.2% in price.
J.B. Hunt lost more than 6% due to weaker-than-anticipated profits, and United Airlines sank more than 8% after providing dovish forecasts. The bank’s wealth management segment performed poorly, overshadowing beats on all lines, as Morgan Stanley plummeted more than 6%, on track to have its worst day since 2020.
However, Procter & Gamble increased 2.5% after outperforming analyst forecasts for the quarter. Investors are currently focusing on Netflix and Tesla’s scheduled earnings on Wednesday after the bell.
According to FactSet, little over 10% of S&P 500 companies have announced results. About 78% of those who have already released financial results have outperformed expert estimates.
During current earnings season, according to senior investment strategist Kevin Gordon of Charles Schwab, the market’s attention is turning to revenue growth. Investors are attempting to distinguish between businesses that are experiencing an uptick in demand and those that are just increasing their earnings through cost-cutting methods, he continued.