Highlights
Equities ended narrowly mixed Wednesday after recovering from morning lows set after mixed earnings news. The Dow Jones industrial average was flat, the S&P 500 eased 0.1 percent, and the NASDAQ slipped 0.2 percent. US Treasury yields declined, oil prices rose, and the dollar was mixed. The S&P 500 rebounded after finding support around 3960.
Equities edged up through the day from an initial mild selloff on bargain-hunting and as some traders squared positions headed into a heavy day of data releases and company earnings due Thursday. The early decline came as bleak results from major technology companies including Microsoft and Texas Instruments put the fear of a hard landing back into play. Other earnings news was more positive, including positive results from Capital One, which lifted financials.
On the positive side for risk appetite was the dovish announcement from the Bank of Canada that it was pausing its rate hike campaign after its latest 25 basis point rate increase. Some players saw this as a foreshadowing the Federal Reserve's next move, if not at the Feb 1 meeting, then soon after.
Sectors were mixed Thursday. Home builders got a lift as rates declined, and as the latest mortgage applications data showed a recovery continuing as mortgage rates fall. Staples retailers and media had a good day, with latter boosted by a rebound in Fox and News Corp. after news their merger was not happening.
On the negative side, rails lagged after Norfolk Southern warned of weaker trading conditions ahead. Other laggards included fintech, parcels & logistics, energy stocks, and fund managers & financial exchanges.
Equities edged up through the day from an initial mild selloff on bargain-hunting and as some traders squared positions headed into a heavy day of data releases and company earnings due Thursday. The early decline came as bleak results from major technology companies including Microsoft and Texas Instruments put the fear of a hard landing back into play. Other earnings news was more positive, including positive results from Capital One, which lifted financials.
On the positive side for risk appetite was the dovish announcement from the Bank of Canada that it was pausing its rate hike campaign after its latest 25 basis point rate increase. Some players saw this as a foreshadowing the Federal Reserve's next move, if not at the Feb 1 meeting, then soon after.
Sectors were mixed Thursday. Home builders got a lift as rates declined, and as the latest mortgage applications data showed a recovery continuing as mortgage rates fall. Staples retailers and media had a good day, with latter boosted by a rebound in Fox and News Corp. after news their merger was not happening.
On the negative side, rails lagged after Norfolk Southern warned of weaker trading conditions ahead. Other laggards included fintech, parcels & logistics, energy stocks, and fund managers & financial exchanges.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.
