The S&P 500 rebounded on Thursday, marking its first positive day in a week plagued by rising rates.
The index gained 0.21 per cent, closing at 5,809.86, and broke a three-day losing streak. The Nasdaq Composite rose 0.76 per cent, finishing at 18,415.49, while the Dow Jones Industrial Average fell by 140.59 points, or 0.33 per cent, to close at 42,374.36, marking its first four-day losing streak since June.
Stocks were recovering from a challenging session, where the Dow experienced its largest one-day decline since early December, dropping over 400 points on Wednesday. The S&P 500 lost nearly 1 per cent, and the Nasdaq dropped 1.6 per cent.
Within the S&P 500 sectors, Consumer Discretionary was the best performer, climbing 3.24 per cent, while Materials was the worst performer, declining by 1.42 per cent.
In company news, Tesla was the standout stock in the broad-market index, surging nearly 22 per cent after delivering third-quarter results that exceeded analyst expectations, achieving its best day since 2013. Molina Healthcare also saw a significant boost, rising 17.7 per cent on better-than-expected earnings and revenue. Both Whirlpool and UPS experienced gains following their results.
IBM weighed down the Dow, with shares falling more than 6 per cent after the company’s consulting revenue narrowly missed analysts’ estimates. Boeing also slipped 1.2 per cent after its machinists rejected a new labor contract.
So far, around 160 S&P 500 companies have reported quarterly results, but overall earnings growth has been disappointing. According to FactSet, the blended growth rate, which includes reported earnings and estimates for upcoming reports, suggests an overall S&P 500 earnings growth rate of just 3.4 per cent compared to the previous year, falling short of analysts’ expectations.
Treasury yields declined, pulling back from the three-month highs reached in the previous session. The 10-year Treasury yield had surpassed the 4.25 per cent mark on Wednesday during its peak.
Futures
The SPI futures are pointing to a 0.2 per cent gain.
Currency
One Australian dollar at 7.45am was buying 66.40 US cents.
Commodities
Gold gained 0.72 per cent. Silver added 0.03 per cent. Copper rose 0.68 per cent. Oil fell 0.45 per cent.
Figures around the globe
European markets closed higher. London’s FTSE added 0.13 per cent, Frankfurt gained 0.34 per cent, and Paris closed 0.08 per cent higher.
Turning to Asian markets, Tokyo’s Nikkei added 0.10 per cent , while Hong Kong’s Hang Seng lost 1.30 per cent and China’s Shanghai Composite lost 0.68 per cent.
Yesterday, the Australian share market closed 0.12 per cent lower at 8206.
Ex-Dividends
Bank of Queensland (ASX:BOQ) is paying 17 cents fully franked
Dividends payable
360 Capital REIT (ASX:TOT)
Australian Unity Office Fund (ASX:AOF)
Cedar Woods Properties Ltd (ASX:CWP)
Civmec Ltd (ASX:CVL)
Horizon Oil Ltd (ASX:HZN)
PRL Global Ltd (ASX:PRG)
RAM Essential Services Property Fund (ASX:REP)
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap, Marketech.
Disclaimer
The views, opinions or recommendations of the commentators in this presentation are solely those of the author and do not in any way reflect the views, opinions, recommendations, of Sequoia Financial Group Limited ABN 90 091 744 884 and its related bodies corporate (“SEQ”). SEQ makes no representation or warranty with respect to the accuracy, completeness or currency of the content. Any prices published are accurate subject to the time of filming and shouldn’t be relied upon to make a financial decision. Commentators may hold positions in stocks mentioned and companies may pay FNN to produce the content at times. The content is for educational purposes only and does not constitute financial advice. Independent advice should be obtained from an Australian Financial Services Licensee before making investment decisions. To the extent permitted by law, SEQ excludes all liability for any loss or damage arising in any way including by way of negligence.