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Wall Street’s major averages on Wednesday struggled for direction, partly weighed down by a decline in utility stocks. It was also one of the busiest days of the earnings season, with the spotlight on media and entertainment giant Walt Disney’s (DIS) results after the closing bell.
Additionally, traders kept an eye on comments from several Federal Reserve speakers, who have so far this week tried to dampen the market’s enthusiasm.
By later afternoon, the tech-heavy Nasdaq Composite (COMP.IND) was up 0.05% to 13,646.62 points, while the benchmark S&P 500 (SP500) added 0.02% to 4,379.32 points. Both gauges in the previous session had posted their best daily win streak each since November 2021. The blue-chip Dow (DJI) was lower by 0.19% to 34,087.45 points.
Of the 11 S&P sectors, six had slipped into positive territory, led by Technology and Industrials. Utilities topped the losers.
Treasury yields extended a decline from Tuesday. The longer-end 30-year yield (US30Y) was down 9 basis points to 4.65%, while the 10-year yield (US10Y) was down 6 basis points to 4.51%. The shorter-end more rate-sensitive 2-year yield (US2Y) was little changed at 4.92%.
See live data on how Treasury yields are doing across the curve at the Seeking Alpha bond page.
“Today, traders’ attention will be on monetary policy makers as Fed Chair Powell and (four) of his FOMC colleagues will make separate appearances; futures currently pricing cumulative 100 basis points of rate cuts (through) January 2025 (25 basis points more than a week ago); market watchers will scrutinize policy makers’ remarks, looking for potential signs that aim to cool market’s expectations for rate cuts,” Liz Ann Sonders, chief investment strategist at Charles Schwab (SCHW), said on X (formerly Twitter).
Central bank chair Jerome Powell gave some opening remarks at a conference at the Fed’s Division of Research and Statistics. Powell noted that the economy was “flexible and dynamic” and that forecasters have to sometimes think outside economic models. He did not comment on monetary policy.
Before Powell, Fed Governor Lisa Cook spoke at the Central Bank of Ireland. Much of her speech was a repeat of one from Monday, with an added portion in which Cook commented on risks from abroad. She also did not comment on monetary policy.
New York Fed President John Williams and Fed Vice Chair for Supervision Michael Barr are on the docket later in the day.
Turning to Wednesday’s earnings-related moves, Warner Bros. Discovery (WBD) was the top percentage loser on the S&P 500 (SP500), after the company reported mixed quarterly results despite seeing a massive boost from hit movie Barbie. eBay (EBAY) was another top loser after issuing disappointing guidance for the all-important holiday quarter.
Conversely, DaVita (DVA) was among the top S&P percentage gainers, after the dialysis services provider delivered a quarterly results beat despite seeing a fall in hospital inpatient revenues.
Disney (DIS) will announce earnings after the close of regular trading. Aside from investors, a notable name also keeping an eye out for the results is activist investor Nelson Peltz, according to a report from CNBC, who will decide his next move based on the figures. Peltz ended a proxy fight with the company back in February.
Among non-earnings moves, Take-Two Interactive Software (TTWO) was a top S&P percentage gainer after a report that its unit Rockstar Games was planning to announce its highly-anticipated Grand Theft Auto VI video game as early as this week.
