Markets Right Now: US stocks open slightly lower

Apr 29, 2018, 13:26
Markets Right Now: US stocks open slightly lower

USA stock indexes swung between gains and losses on Wednesday, as Boeing's jump after upbeat results and outlook was negated by declines in technology stocks and rising US bond yields.

The S&P 500 index on Wednesday added 4.84 points, or 0.2 percent, to 2,639.40. The Nasdaq Composite Index ended virtually flat at 7,004, down less than 0.1%.

Stocks tumbled Tuesday after companies including Caterpillar, 3M and Sherwin-Williams said they're seeing higher costs.

BONDS: The concerns about increased costs also come at a time of rising interest rates, which makes it more expensive for companies to borrow money.

Twitter fell by nearly 2.5 per cent after the social media company said it expects a slowdown in revenue growth and rising costs.

Alphabet shares fell 4.77 per cent, erasing the stock's year-to-date gains as rising expenses and shrinking margins overshadowed the company's better-than-expected profit.

The 10-year bond note yield traded at highest level since January 2014, breaking above 3 percent for the first time in more than four years.

Industrial and basic materials companies and technology firms took some of the worst losses.

Aerospace company Boeing was an exception, as it topped Wall Street's estimates and raised its forecasts for the year.

THE QUOTE: Stocks shot up at the end of 2017 and the start of 2018 as investors bet that the recent corporate tax overhaul would lead to bigger profits for American companies and greater economic growth. The S&P 600 closed at 955.03 for a loss of -2.34 points or -0.24%.

Gina Martin Adams, chief equity strategist for Bloomberg Intelligence, said it hasn't happened yet.

USA crude oil futures settled 1.4 per cent lower at $67.70 a barrel as concerns faded over the possibility that the United States might reinstate sanctions against Iran. The stock market had already been spooked by a climb in bond yields earlier in the year, sliding sharply in February.

Other big technology companies also fell, as Facebook dropped 3.7 percent to $159.69 and Microsoft skidded 2.3 percent to $93.12. The 10-year Treasury is seen as a proxy for interest rates and a predictor of the long-term outlook for the United States economy. Exxon Mobil rose 1.5 percent after raising its dividend.

Another market favorite, online retailer Amazon, shed 3.8 percent to $1,460.09. By the close, Hong Kong's Hang Seng lost 1%, South Korea's Kospi fell 0.6%, China's Shanghai Composite shed 0.4%, and Japan's Nikkei dipped 0.3%. The Dow finished up about 60 points, or 0.23, at 24,083, with Boeing's stock contributing about 96 points to the blue-chip average.

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