U.S. stocks were mixed on Thursday as traders continued to mull the prospect of higher interest rates and investors digested the latest economic data and corporate earnings reports.[0] The Dow Jones Industrial Average (DJIA) inched higher, while the S&P 500 (SPX) and Nasdaq Composite (COMP.IND) both declined.[1]
The 10-year Treasury yield rose 8 basis points to 4.08%, topping 4% yesterday for the first time since November.[0] Yesterday, the 2-year yield (US2Y) rose by 4 basis points to a post-2007 high of 4.93%.[2]
Shares of Salesforce (NYSE:CRM) skyrocketed by more than 15% following the company’s release of higher-than-anticipated fourth quarter results and guidance. The company’s CEO, Marc Benioff, is aiming to increase profits in order to counter the pressure brought on by a number of activist investors.[3]
Meanwhile, Novavax (NVAX (opens in new tab)) plunged 25.9% after the vaccine maker said that although it has enough cash for the next 12 months or so, “substantial doubt exists regarding our ability to continue as a going concern through one year.”[4] The firm revealed a greater-than-anticipated deficit in its fourth quarter and also came up short on its top-line revenue.[5]
Tesla (NASDAQ:TSLA), following an investor day event during which Chief Executive Elon Musk gave little information about the launch of a much anticipated cost-effective electric vehicle, saw its stock drop 8.15%.[6]
Pre-market trading saw Okta Inc (OKTA) soar more than 13% after the company announced positive Q4 results and provided a robust Q1 guidance.[3]
The Federal Reserve is expected to hike interest rates at least two more times to the 5% level, but further increases could be possible.[7]
In commodities, crude oil rose 0.6% to $78.12 a barrel, while the Brent contract rose 0.5% to $84.74.[8] Gold futures fell 0.2% to $1,842.15/oz.[9]
Asian markets ended the trading session down, as investors anticipate a potentially larger interest rate hike from the U.S. Federal Reserve.[10] The Hang Seng in Hong Kong, the Shanghai Composite in China, and the Shenzhen Component in China all finished lower, at -0.92%, -0.05%, and -0.33%, respectively.[1]
0. “US stocks trade mixed as inflation concerns keep traders on edge over higher rates” msnNOW, 2 Mar. 2023, https://www.msn.com/en-us/money/markets/us-stocks-trade-mixed-as-inflation-concerns-keep-traders-on-edge-over-higher-rates/ar-AA188Jks
1. “Stock Market News Today: Stocks Mixed after Jobless Claims Data” TipRanks, 2 Mar. 2023, https://www.tipranks.com/news/stock-market-news-today-futures-remain-volatile-as-yields-climb-higher
2. “Nasdaq, S&P slide on wage inflation worries, Dow bucks trend (SP500)” Seeking Alpha, 2 Mar. 2023, https://seekingalpha.com/news/3943100-nasdaq-sp500-dow-jones-stock-market-interest-rates
3. “Stocks Mixed Before The Open As Bond Yields Tick Higher On Fed Concerns, ECB Minutes In Focus” Barchart, 2 Mar. 2023, https://www.barchart.com/story/news/14699726/stocks-mixed-before-the-open-as-bond-yields-tick-higher-on-fed-concerns-ecb-minutes-in-focus
4. “Stock market news today: Fears of high interest rates hit investors” Markets Insider, 1 Mar. 2023, https://markets.businessinsider.com/news/stocks/stock-market-news-today-investors-fear-high-interest-rates-fed-2023-3
5. “Stock Market Today: Stocks Struggle to Start March” Kiplinger’s Personal Finance, 1 Mar. 2023, https://www.kiplinger.com/investing/stocks/stock-market-today-030123-stocks-struggle-to-start-march
6. “Macy’s, Salesforce and Okta rise premarket; Silvergate, Tesla fall By Investing.com” Investing.com, 2 Mar. 2023, https://www.investing.com/news/stock-market-news/macys-salesforce-and-okta-rise-premarket-silvergate-tesla-fall-3020301
7. “Stocks Post Subpar February Amid Fears Of Higher Interest Rates And Weak Earnings” Forbes, 28 Feb. 2023, https://www.forbes.com/sites/dereksaul/2023/02/28/stocks-post-subpar-february-amid-fears-of-higher-interest-rates-and-weak-earnings
8. “Dow Jones Futures Rise: Tesla, EV Chip Plays Tumble After Investor Day; Salesforce Stock Soars | Investor’s Business …” Investor’s Business Daily, 2 Mar. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-tesla-investor-day-tsla-stock-salesforce-stock-soars
9. “Dow futures up 70 pts; jobless claims, retail earnings in focus By Investing.com” Investing.com, 2 Mar. 2023, https://www.investing.com/news/stock-market-news/dow-futures-up-70-pts-jobless-claims-retail-earnings-in-focus-3020141
10. “Resilient Stocks Look To Break Free As Nasdaq, S&P 500 Futures Climb: Brace For More Volatility, Sideways” Benzinga, 1 Mar. 2023, https://www.benzinga.com/news/earnings/23/03/31117635/resilient-stocks-look-to-break-free-as-nasdaq-s-p-500-futures-climb-brace-for-more-volatility-sidew