Stocks Fall Wednesday as Earnings Season Picks up Steam
Stocks dropped Wednesday as earnings season gained steam and Wall Street looked ahead to key financial reports.
Wall Street continued to assess the impact of the ongoing Israel-Hamas war. Traders also parsed through the latest third-quarter earnings as the reporting season ramps up. Nvidia kept dropping 2.6% in morning trading after falling 4.68% on Tuesday.
Shares of United Airlines fell more than 4% in premarket trading on soft guidance, while Procter & Gamble rose more than 1% after beating analyst expectations for the quarter. Netflix and Tesla are among the big names on deck after the market closes on Wednesday.
Just over 10% of companies in the S&P 500 have reported results, according to FactSet. Of those that have already reported, about 78% have surpassed analyst expectations.
“It’s not a surprise that profits are likely to surpass analysts’ estimates” given that companies face an already-low bar, said Anthony Saglimbene, chief market strategist at Ameriprise Financial. “It’s more about the outlooks, and the direction of interest rates that are really going to inform the near-to-intermediate term direction of stocks.”
Stocks are coming off a muted session on Tuesday as bond yields popped on stronger-than-expected September retail sales. The Dow rose 0.04% , while the S&P 500 inched 0.01%. The Nasdaq Composite lagged, falling 0.25% to 13,533.75.
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