Newscasts - Wall St. little changed while investors digest yields, earnings
22/10/2024 23:54
Click the following link to watch video: https://share.newscasts.refinitiv.com/link?entryId=1_man3b4qt&referenceId=tag:reuters.com,2024:newsml_RW393322102024RP1_930&pageId=Newscasts Source: 'Reuters - Business videos' Description: U.S. stocks ended little changed on Tuesday, but the Nasdaq eked out a modest gain while investors kept an eye on Treasuries yields and awaited more earnings to assess the health of American companies. Lisa Bernhard has more. Short Link: https://refini.tv/3YBl8RT Video Transcript: Wall Street's main indexes ended mostly flat on Tuesday while investors kept an eye on US Treasury yields and sorted through more corporate earnings. The Dow and S&P 500 ended little changed, while the NASDAQ added nearly 0.20%. Yields on the benchmark 10-year Treasury note climbed above 4.2%, hovering at levels not seen in three months, as investors reassessed expectations for the Federal Reserve's trajectory of rate cuts. Ben McMillan, Chief Investment Officer and Co-Founder at IDX Advisors, said he believes the $35 trillion national debt is also weighing on investors. The markets are sending a message that the US's fiscal debt position, what the fiscal deficits as well as a long-term debt position, is not tenable and the bond vigilantes, so to speak, are pushing back. And I think stocks are starting to digest that. Obviously, we're coming into an earnings season and, this is against the backdrop of the so-called 'soft landing,' which looks like the Fed is going to pull it off. But again, we’ve been saying for a long time that comes at a cost. And that cost is record fiscal deficits, which by the way, don't look like they're going to decrease any time soon, irrespective of who's in the White House. The next few weeks are likely to be volatile for equity markets, as investors scrutinize company earnings, fresh economic data and the results of the US election, followed by a central bank meeting. In earnings news, shares of Verizon fell 5% as the telecom giant missed estimates for third-quarter revenue. 3M shares slipped more than 2%, reversing premarket gains, despite raising the low end of its full-year adjusted profit forecast. Shares of General Motors jumped nearly 10% after the automaker's third-quarter results beat Wall Street estimates. And shares of McDonald's plunged in after-hours trading, following a report from the US Centers for Disease Control saying 10 people have been hospitalized and one older person in Colorado has died after E. coli infections linked to the fast-food chain's Quarter Pounder hamburger in 10 states