By Heard Editors
The market's placid exterior of late is masking some turmoil below the surface.
The broad market was once again only little changed, with the S&P 500 advancing 0.2% and the Dow Jones Industrial Average falling 0.4%, or a loss of 154 points. The Nasdaq Composite was the big mover, gaining 0.8%.
Even though the S&P 500 is on pace for just a 1% rise in October, several moves suggest that there is still quite a bit darkening investors' autumn vibes.
Take the Treasury market, where yields on 10-year notes are about 0.65 percentage point above their September low, at 4.27%. It may be tempting to call this a "Trump trade," reflecting a bet that the former president will drive deficits wider if he wins. But there is a lot conspiring to push yields higher, including positive economic indicators.
Earnings season has also been a tumultuous one so far. Some familiar names from around the house were among the top disappointments for shareholders following their quarterly updates on Tuesday. Shares of footwear-maker Crocs tumbled nearly 20% after the company dimmed its guidance due to a sharp drop in quarterly sales for its Heydude brand.
And Stanley Black & Decker led all decliners in the S&P 500, dropping more than 8%. The tool-maker warned that it would likely raise prices and shift production if Donald Trump wins and enacts fresh tariffs on Chinese goods.
This analysis comes from the Journal's Heard on the Street team. Subscribe to their free daily afternoon newsletter here.
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(END) Dow Jones Newswires
October 29, 2024 17:15 ET (21:15 GMT)
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