US stocks fluctuated on Tuesday amid another crowded list of earnings from companies like Bank of America and Goldman Sachs.
The S&P 500 (^GSPC) rose above the flat line, while the Dow Jones Industrial Average (^DJI) fell below the flat line. The technology-heavy Nasdaq Composite (^IXIC) was down 0.11% at 2:42 PM ET.
Government bonds were mixed. The yield on the 10-year note fell to 3.581%, while the two-year note rose to 4.218% Tuesday morning.
With earnings season underway in full swing this week, the headlines on Tuesday morning were the big banks. Bank of America (BAC) announced better-than-expected first-quarter earnings on the back of higher borrowing costs and rates. The stock was up nearly 1% at the open.
Meanwhile, Goldman Sachs (GS) reported a miss in its quarterly revenue estimates, hurt by a slowdown in deal closing and the offloading of a significant portion of its personal loan portfolio from Marcus. The stock fell more than 3% on Tuesday morning.
Bank of New York Mellon (BK) beat estimates for first-quarter earnings on Tuesday, benefiting from higher interest rates because it boosted a lender’s interest income, which is the difference between what the bank earns on its loans and what it pays out on its deposits.
Outside of financial institutions, Southwest Airlines (LUV) stock is down about 1% after The Federal Aviation Authority said in a tweet that the airline had asked the agency to temporarily halt its departures due to an internal technical issue at Southwest. The FAA said the entire pause has been cancelled.
Stocks closed higher on Monday, reversing earlier declines during the trading session as earnings season kicks off. The S&P 500 closed up 0.3%.
The biggest gainer was M&T Bank Corporation (MTB), up 7.8% after beating expectations for first-quarter revenue and earnings. The picture was different for State Street Corporation (STT), which fell more than 9% after reporting a 3% drop in net interest income in the first quarter.
More profits are on deck this week. First Horizon (FHN), Western Alliance (WAL), United Airlines (UAL), and Netflix (NFLX) are scheduled to be introduced after the market closes on Tuesday.
On the economic front, initial housing stocks of single-family homes fell 0.8% to 1.42 million annually, down from the previous month’s reading of 1.45 million. Building permits, a forward-looking measure of housing activity, fell 8.8% to an annual rate of 1.41 million, down from last month’s figure of 1.55 million homes.
Separately, Richmond Fed President Tom Barkin, a non-voting member of the Federal Open Market Committee, which sets interest rates, said on Monday he wanted to “see more evidence that inflation stabilizes back to our target” and that “employment The market has gone from very hot to just hot.”
Meanwhile, St. Louis Fed President James Bullard said in an interview Tuesday that rate hikes should continue to hit the Fed’s inflation target.
Several Fed officials are expected to speak this week, and market participants are waiting to see if they strike a similar tone ahead of the Fed’s hiatus, which begins on Saturday.
Investors became increasingly skeptical that the Federal Reserve would cut interest rates anytime soon, and Treasury bonds sold off on Monday, with the two-year yield rising to 4.189%, its highest close in more than a month. 10-year bond yields rose as Speaker of the House Kevin McCarthy gave a speech on the debt ceiling at the New York Stock Exchange.
“This growing optimism about the near-term performance of the economy means that investors are now almost entirely in pursuit of a Fed rate hike at their May 3 meeting,” Jim Reid and colleagues at Deutsche Bank wrote in a note to clients.
Actually, the data From the CME group It showed that markets have priced in an 86% chance that the Federal Reserve will raise rates by another 0.25% in May.
Here are some others Common indications On Yahoo Finance:
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Johnson & Johnson (JNJ): The pharmaceutical giant reported better-than-expected revenue and profits in the first quarter of the year. The company raised its full-year adjusted earnings forecast to a range of $10.60 to $10.70 per share, from $10.45 to $10.65 previously.
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Lockheed Martin (LMT): The defense giant posted first-quarter results that beat Wall Street’s estimates and reaffirmed its full-year outlook, projecting net sales in the range of about $65 billion to $66 billion and earnings between $26.60 per share and $26.90 per share.
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Teladoc Health, Inc. (TDOC): Teladoc said press release On Tuesday it was launching caregiver-based care for weight management programs and pre-diabetes programs.
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JB Hunt Transport Services, Inc. (JBHT): The company missed its earnings forecast for the first quarter, lower than a year ago, citing “shipping stagnation” effects in the brokerage unit.
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NVIDIA Corporation (NVDA): Shares jumped on Tuesday morning after a price target and ratings upgrade from analysts at HSBC, pointing to the chipmaker’s opportunities in artificial intelligence.
Elsewhere abroad, China’s economy rebounded in the first three months of the year after ending Covid restrictions in nearly three years. China’s economy expanded 4.5% in the first quarter of the year, better than the 4.0% pace expected by economists, China’s National Bureau of Statistics said Tuesday.
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Danny Romero, Yahoo Finance correspondent. Follow her on Twitter @employee
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