Stocks were little changed on Thursday as investors weighed several key earnings reports and kept an eye on the bond market, where Treasury yields continue to climb.
The Dow Jones Industrial Average added 43 points, or 0.1%. The S&P 500 and the Nasdaq Composite ticked down about 0.1% each.
Several strong earnings reports were supporting the market, with AT&T and IBM moving higher in early trading after beating estimates on the top and bottom lines for their most recent quarter.
On the downside, Tesla shares dropped almost 6% after the electric vehicle maker said Wednesday evening it expects to miss its 2022 deliveries target. The company also posted a quarterly revenuethat missed analyst expectations.
Meanwhile, the benchmark 10-year Treasury yield reached a high of 4.18% on Thursday, briefly trading at levels not seen since 2008. It was last flat for the session near 4.13%. Rising rates have been a headwind for stocks all year, as the Federal Reserve continues to try and cool off inflationary pressures not seen in decades.
The surge in yields on Thursday contributed to the end of a two-day winning streak for stocks, with the Nasdaq Composite sliding 0.85%. The Dow declined 99.99 points, or 0.33%, and the S&P 500 dipped 0.67%.
“Despite recent market volatility, central bank tightening expectations have only increased as inflation
readings around the world have continued to come in hot. While there are bound to be more big up &
down days ahead, our intermediate-term bearish base case remains unchanged,” Chris Senyek of Wolfe Research said in a note to clients.
On the economic front, the Philadelphia Fed manufacturing survey and the weekly jobless claims data are expected Thursday before the bell.