U.S. stocks firmed slightly as good earnings offset higher bond yields

U.S. stocks firmed slightly as good earnings offset higher bond yields
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U.S. stocks rose on Thursday, extending their weekly gains with a strong start, offsetting a drag from higher bond yields in the third-quarter earnings season.

How stocks are bought and sold
  • S&P 500

    It increased by 23 points or 0.6% to 3,719.

  • Dow Jones Industrial Average

    It rose 275 points, or 0.9%, to 30,698.

  • Nasdaq Composite

    It rose 126 points, or 1.2%, to 10,806.

Despite ending lower on Wednesday, all three major indexes posted strong gains for the week. The Dow rose 3.6%, the S&P 500 rose 3.8% and the Nasdaq rose 4.8%, putting all three indexes on track for their best week in more than a month.

What drives the markets

Stocks recovered after falling in premarket trade in response to a jump in U.S. Treasury yields, as investors welcomed stronger-than-expected quarterly earnings for the 10-year yield. BX: TMUBMUSD10YIt increased by 4.2 basis points to 4.160% after the previous 4.170%.

Investors saw strong results from AT&T

International Business Machines IBMDow Inc. DOWUnited Airlines Holdings GOOD and others.

Tesla on the downside

Shares fell after the electric carmaker said on Wednesday evening it would miss its 2022 delivery target. The company also posted quarterly revenue that missed analysts’ expectations. Shares were down 3.8% in recent trade.

Of the 503 S&P 500 firms, 90 have reported earnings so far, with 74.4% reporting a positive surprise, according to FactSet.

Heading into earnings season, investors were bracing for bad news after FedEx Corp.

Art Hogan, chief market strategist at B.Reily Wealth, withdrew his guidance and called for lower profit and revenue, but the companies reporting so far have managed to beat those lower expectations.

“We had expectations of a disaster in earnings, and that expectation didn’t meet the reality,” Hogan said. “We have never had a disappointed family name. “There hasn’t been one standout where you can say, ‘That’s a word,'” Hogan said.

To see: As earnings season begins, stocks are trying to rally. What will it take to keep the gains.

Next week will be one of the busiest weeks for corporate earnings this season, as investors will get results from Apple.

and Amazon
among other firms. According to FactSet, 165 S&P 500 index companies are expected to report next week, compared with just 66 this week.

Investors received a weekly update on the number of Americans filing for unemployment benefits on Thursday. Displayed information New claims for benefits fell by 12,000 in mid-October to a three-week low of 214,000.After Hurricane Ian, more people who were unable to work returned to their jobs.

October The Philadelphia Fed’s October manufacturing index It remained in contraction territory with a reading of -8.7, below expectations for -5. This is compared to -9.9 last month.

Finally, US existing home sales fell 1.5% The seasonally adjusted annual rate for September was 4.71 million, the National Association of Realtors reported Wednesday. This is the eighth consecutive monthly decline since 2007.

in the United Kingdom, British Prime Minister Liz Truss’ decision to resign It helped push the British pound GBPUSD is high against the dollar. The British currency rose 1% to $1.13 against the dollar in recent trade, while the ICE US Dollar Index dxy, the indicator of the dollar’s strength against a basket of competitors, decreased by 0.5% to 112.98. “Certainly the UK news is in focus,” said Joe Saluzzi, co-head of equity trading at Themis Trading. “But if you go back and look at the dollar chart over the last year, when the dollar goes up, stocks go down and vice versa.”

Companies in focus

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