NEW YORK (AP) โ Stocks fell to another mixed close as Wall Street continues to recalibrate after its recent wild swings. The S&P 500 rose 0.1% on Wednesday, its third straight day of quiet trading. The Dow Jones fell 39 points and the Nasdaq composite rose 0.1%. Eli Lilly jumped after winning U.S. approval for a weight-loss drug, while Warner Brothers Discovery sank after reporting a worse-than-expected fourth-quarter loss. The 10-year Treasury yield declined, helping to generally calm financial markets. Crude oil prices continued to fall and returned to levels like in July.
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NEW YORK (AP) โ U.S. stocks fell again Wednesday as Wall Street continues to recalibrate its recent sharp swings.
The S&P 500 was virtually unchanged and on track for a third straight day of quiet, mixed trading. Its moves have become much calmer after the index reached its best week of the year last week, which itself came after months of painful losses.
The Dow Jones Industrial Average was down 90 points, or 0.3%, as of 3 p.m. ET, and the Nasdaq composite was down 0.1%.
Eli Lilly was one of the strongest forces driving the market. It rose 2.7% after US regulators said its popular diabetes treatment, Mounjaro, can be sold as a weight-loss drug and tap into a market with huge potential.
American Airlines, Delta Air Lines and United Airlines were also leading the market, each rising more than 2% as oil prices continued to fall and ease pressure on fuel costs.
Warner Brothers Discovery fell 17.8% after reporting a loss for the latest quarter that was worse than analysts expected. It also lost more streaming subscribers than expected.
The summer earnings reporting season is coming to an end and most companies have been beating Wall Street forecasts. This is usually the case and offers some support to the stock market. But the big driver of stock price movements since the summer has been the performance of yields in the bond market.
The 10-year Treasury yield fell to 4.52% from 4.57% late Tuesday, helping to impart calm to financial markets.
A rapid increase in performance over 10 years that began the previous summer knocked the S&P 500 down more than 10% from its year's high. The 10-year yield briefly surpassed 5% to reach its highest level since 2007, while hitting the Federal Reserve's main interest rate, which is above 5.25% and at its highest level since 2001.
The Federal Reserve has raised rates in hopes of slowing the economy and hurting investment prices enough to put downward pressure on inflation and get it back to its 2% target.
However, last week investors took comments from Federal Reserve Chairman Jerome Powell to indicate that interest rate increases can be made by the central bank. He said the summer jump in Treasury yields could replace further rate hikes if they remain persistent. That triggered a sharp drop in Treasury yields, which in turn helped stocks rise.
Now, investors are trying to get in the way of what comes next. A wide range of outcomes are still possible for the U.S. economy: The 10-year yield could fall as much as 3% if it were to fall into a painful recession, according to Bank of America strategists led by Bruno Braizinha. At the same time, they said the 10-year yield could rise back above 5% if the economy remains resilient.
A recent sharp drop in oil prices could relieve some pressure on inflation, which in turn could help the Federal Reserve feel more confident about keeping rates steady rather than raising them further.
The price of a barrel of US crude oil has returned to the level it was in July and fell another $2.04 to settle at $75.33. Brent crude, the international standard, fell $2.07 to $79.54.
Oil prices have been falling since hitting $90 a little over a month ago. He The last war between Israel and Hamas. raised concerns about potential supply disruptions, making prices volatile for a time. But concerns about demand remain high given faltering economies around the world, particularly in China.
Stock indexes fell 0.2% in Shanghai and 0.6% in Hong Kong, adding to modest losses across much of the rest of Asia. Stocks rose in Europe.
Elsewhere on Wall Street, Axon Enterprise rose 4.6% after the maker of Tasers, body cameras and other equipment reported higher-than-expected fourth-quarter earnings than analysts had forecast.
Ralph Lauren rose 1.9% after reporting stronger fourth-quarter earnings than analysts had forecast.
eBay sank 2.3% after its revenue forecast for the final three months of 2023 missed analyst expectations.
Rivian Automotive swung from an early profit to a 2.8% loss after the electric vehicle company raised its forecast for how many vehicles it will produce this year and reported weaker-than-expected earnings for the latest quarter.
AP Business Writer Yuri Kageyama contributed.
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