Dow ends higher, but Treasury yields pressure market

Reuters

Dow ends higher, but Treasury yields pressure market

2024 5월 8, 오후 8:00 GMT

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Dow's 6th straight win; best since 9-session stretch in Dec

Uber falls on weak Q2 gross bookings forecast

Intel down after Q2 revenue warning

Utilities index up for 14th session in last 16

Updates to close

By David French

May 8 (Reuters) -The Dow Jones Industrial Average closed higher on Wednesday, stretching its winning streak to six straight, as investors kept betting on supportive U.S. monetary policy.

The other Wall Street benchmarks cooled a touch asmomentum stalled and U.S. Treasury yields rose on the day of a 10-year notes auction. The S&P 500 ended essentially flat after four sessions of gains, and the Nasdaq Composite slipped to a second consecutive decline.

There was not much news to move the indexes, outside of reports from individual companies.

"We're just waiting for the next catalyst to jump-start the direction in the market, and we're probably going to get that next week," said Ameriprise Chief Market Strategist Anthony Saglimbene. The Producer Price Index (PPI) is due on May 14, and the Consumer Price Index (CPI) scheduled for May 15.

"I think traders are reluctant to take broader stocks or broader averages higher, until they get a fresh update on inflation," he added.

The S&P 500 has leveled off close to the 5,200 mark, which is last closed above on April 9. On Wednesday, it was hamperedby sliding shares of Uber UBER.N which posted a surprise quarterly loss and issued a downbeat forecast.

The ride-hailing platform was among theS&P 500's biggest decliners, after it forecast second-quarter gross bookings would not meet expectations.

Tesla TSLA.O fell after Reuters reported U.S. prosecutors were examining whether the company committed securities or wire fraud by misleading investors and consumers about its electric vehicles' self-driving capabilities.

Other megacap stocks such as Amazon AMZN.O and Alphabet GOOGL.O slipped as the 10-year Treasury yield US10YT=RR edged up.

Rising yields helped dampenoptimism spurred by a positive earnings season and softer-than-expected labor market data last week thathad tempered concerns about the Federal Reserve keeping interest rates higher for longer.

Traders are pricing in a 67% chance of the Fed cutting rates by at least 25 basis points in September, according to the CMEGroup's Fedwatch tool, up from about 54% a week ago.

Fed policymakers who spoke on Wednesday stayed consistent to recent messaging, including at the U.S. central bank's policy meeting last week.

Boston President Susan Collins said the current setting of monetary policy will slow the economy in the way she believes will be necessary to get inflation back to the Fed's 2% target.

According to preliminary data, the S&P 500 .SPX lost 0.09 points, or 0.00%, to end at 5,187.61 points, while the Nasdaq Composite .IXIC lost 29.80 points, or 0.18%, to 16,302.76. The Dow Jones Industrial Average .DJI rose 172.45 points, or 0.44%, to 39,056.71.

Among S&P sectors, utilities .SPLRCU finished higher for the 14th time in 16 sessions, boosted as Vistra CorpVST.N jumped after reporting strong earnings.

Among the heaviest declines were real estate .SPLRCR and consumer discretionary .SPLRCD.

Intel INTC.O fell after warning of a sales hit from the U.S. revoking some of the chipmaker's export licenses for China.

Tripadvisor TRIP.O tumbled after the online travel agency ruled out a possible sale at this time and posted a surprise quarterly loss.

Uber rival Lyft LYFT.O climbed after projecting higher-than-expected gross bookings and a core profit for the current quarter.

Reporting by Sruthi Shankar and Shristi Achar A in Bengaluru and David French in New York; Editing by Shinjini Ganguli, Devika Syamnath and David Gregorio

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