Stocks fall as higher rates rattle investors to start the week — Business d’Or

US stocks fell on Monday as investors became cautious as bond yields climbed after seeing the latest corporate earnings.

The Dow Jones Industrial Average fell 23 points or 0.1%. The S&P 500 was down 0.6% and the Nasdaq Composite was down 0.9%.

Investors made some gains after a strong start to the year in the stock market. The S&P 500 is up more than 7% in 2023, while the Nasdaq Composite has risen in the last five weeks, a streak not seen since November 2021. Meanwhile, bond yields rose.

The 10-year benchmark yield rose about 9 basis points to his 3.619%. The 2-year yield rose about 13 basis points to 4.426%. Tyson Foods fell nearly 5% on a lower-than-expected earnings report. Children’s clothing retailer Children’s Place fell 4% after revising its fourth-quarter outlook.

Apple fell more than 1%, with concerns about rising interest rates weighing on some tech stocks and weighing on the Dow. Retail stocks Target and Nike also fell, while defensive stocks such as Merck and Coca-Cola rose.

Disney, Chipotle, DuPont and PepsiCo are he one of the big companies to report earnings this week. S&P 500 earnings are expected to decline 2.7% in the fourth quarter, according to Refinitiv.

AXS Investments CEO Greg Bassuk said:

“However, we also see continued investor anxiety and uncertainty as corporate earnings, economic data and Fed policy become more inconsistent,” observes Washington’s Economic Club. Powell’s comments on disinflation prompted investors to bid higher on stocks last week and miss out on a Fed rate hike.

Monday’s Dow winners and losers:

The Dow was the best performer of his three averages on Monday, dropping just 0.1% at 1:30 p.m. The 30-stock index was boosted by Caterpillar, Travelers Companies, McDonald’s, Merck and UnitedHealth, all of which he gained more than 1% during the session.

However, laggards kept the index below zero. Intel retreated the most with his 3.2% loss. Walgreens lost about 2%, while Cisco, Apple and Nike all lost more than 1.5%.

Originally published at https://businessdor.com on February 6, 2023.