Sign InStock Market Dips, Earnings & Mortgage Updates | October 23
Alex Vellor
Stock futures dipped on Wednesday morning after two consecutive days of losses for the S&P 500. Futures for the S&P 500 dropped 0.1%, while Dow futures fell 0.4% and Nasdaq 100 futures slid 0.2%. The rise in 10-year Treasury yields, now at 4.23%, is weighing down on stock prices, including the S&P 500 and the Dow, which experienced slight declines on Tuesday.
Premarket Movers:
| Company | Stock Movement | Reason |
|---|---|---|
| McDonald's (NYSE:MCD) | Stock fell 6.8% | E. coli outbreak linked to Quarter Pounder hamburgers, resulting in one death and 49 illnesses in the U.S. |
| AT&T (NYSE:T) | Stock rose 2.8% | Gained more wireless subscribers than expected, driven by higher-tier unlimited plans. |
| Coca-Cola (NYSE:KO) | Stock fell 2.1% | Sluggish demand, despite higher prices leading to better-than-expected earnings. |
| Texas Instruments (NASDAQ:TXN) | Stock rose 3.4% | Third-quarter income exceeded expectations, driven by EV momentum in China. |
| Starbucks (NASDAQ:SBUX) | Stock fell 3.9% | Preliminary Q4 results showed declines in same-store sales, net revenue, and profit, with weaker US demand. |
| Qualcomm (NASDAQ:QCOM) | Stock fell 3.8% | Report that Arm Holdings (NASDAQ:ARM) is scrapping a license for using its intellectual property to design chips. |
| Boston Scientific (NYSE:BSX) | Stock rose 1.1% | Raised full-year earnings guidance after strong Q3 earnings. |
| American Airlines (NASDAQ:AAL) | Stock fell 0.3% | U.S. Transportation Department fined the carrier $50 million for its treatment of disabled passengers. |
| Hilton Worldwide (NYSE:HLT) | Stock fell 4.3% | Lowered upper end of annual room revenue growth forecast as U.S. consumers cut back on domestic travel. |
Coca-Cola Exceeds Earnings Expectations
Coca-Cola (NYSE: KO) reported strong third-quarter earnings, beating Wall Street's expectations.
The company posted an adjusted earnings per share of 77 cents, higher than analysts’ estimate of 74 cents. Coca-Cola's revenue hit $11.95 billion, surpassing the predicted $11.60 billion. Despite slowing demand, higher pricing helped the company stay ahead of market expectations.
Boeing Faces Big Day Amid Earnings and Strike
Boeing (NYSE:BA) reported a quarterly adjusted loss of $10.44 per share, slightly better than the anticipated $10.52 loss.
The company’s revenue of $17.84 billion edged out the forecast of $17.82 billion. Boeing's new CEO Kelly Ortberg will face analysts for the first time on Wednesday.
The company is also dealing with labor disruptions as more than 32,000 machinists remain on strike. A vote on a new contract proposal, which could potentially end the five-week strike, is scheduled for Wednesday night. The result is expected to be pivotal in resuming airplane production.
Housing Market Struggles With Mortgage Rate Rise
Mortgage applications hit their lowest levels since August as rising rates discouraged both buyers and homeowners looking to refinance. The Mortgage Bankers Association (MBA) reported a 5.1% drop in applications for home purchases and an 8.4% drop in refinancing last week.
The 30-year fixed mortgage rate remained at 6.52%, its highest level in months. Just a month ago, the rate was 6.13%, marking a notable rise. This increase in financing costs, coupled with high home prices, is likely to prolong the housing market's slowdown, which has persisted for over a year.
Treasury Yields Hit Highs, Pressuring Markets
Yields on 10-year Treasury notes climbed to 4.2% on Tuesday, the highest since July. This marks a sharp rise from a 15-month low of 3.6% in mid-September. The upward trend in yields reflects market expectations that the Federal Reserve may delay cutting interest rates due to the economy's resilience.
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Alex Vellor
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