S&P Snaps 3-Day Losing Streak
The S&P 500 snapped a three-day losing streak Wednesday as investors digested third-quarter earnings and insights into when the Fed might taper its asset-purchase program.
The Dow Jones Industrials came off its losses of the morning, but remained 0.53 points, to 34,377.81.
The S&P 500 regrouped 13.15 points to 4,363.80.
The NASDAQ Composite triumphed 105.71 points to 14,527.09.
Third-quarter earnings season kicked off on Wednesday with JPMorgan Chase, which said that quarterly profit topped expectations following a boost from better-than-expected loan losses. Revenue for the largest U.S. bank by assets also came in higher than expected.
JPMorgan shares fell 2.6% following the report despite the strong earnings report. The stock is up more than 26% this year.
Delta Air Lines also reported financial results before the opening bell on Wednesday. The company posted higher-than-expected revenue and its first quarterly profit without counting federal aid since the start of the pandemic.
However, the airline said higher costs of fuel and other expenses will pressure its fourth-quarter bottom line. Shares of Delta shed 5.8%.
Apple shares dipped 0.4% after a Bloomberg News report that said it is likely to cut iPhone 13 production because of chip shortages.
Despite Apple’s retreat, technology stocks enjoyed a lift Wednesday from a lower U.S. 10-year Treasury note yield. Low interest rates can push growth stock prices higher because they lift the value of companies’ future earnings.
Investors await earnings reports from Bank of America, Morgan Stanley, Citigroup, Wells Fargo and Walgreens Boots Alliance on Thursday.
Minutes released Wednesday afternoon from the Federal Open Market Committee’s September meeting showed the central bank could begin tapering its asset-purchase program as soon as mid-November.
The consumer price index jumped 0.4% in September from the month prior and 5.4% year over year, the U.S. Labor Department reported Wednesday. Economists expected to see a month-to-month increase of 0.3% or annualized rate of 5.3%, according to Dow Jones.
Excluding energy and food, the core CPI rose 0.2% month over month and 4% over the last 12 months, against respective estimates for 0.3% and 4%.
Prices for 10-year Treasurys moved higher, lowering yields to 1.54% from Tuesday’s 1.57%. Treasury prices and yields move in opposite directions.
Oil prices faded six cents to $80.58 U.S. a barrel.
Gold prices jumped $33.80 to $1,793.10 U.S. an ounce.