The S&P 500 ticked lower for a third straight day, as Wall Street assessed the latest corporate earnings results and struggled to shake off pressure from rising bond yields, in which the benchmark 10-year Treasury yield is trading at around 4.18 per cent, near its highest level since November 2022.
The S&P 500 fell 0.25 per cent to finish at 4,501.89, while the Dow Jones Industrial Average lost 66.63 points, or 0.19 per cent to end at 35,215.89. The Nasdaq Composite inched down 0.1 per cent to 13,959.72.
The busy earnings week carried on, with chipmaker Qualcomm losing about 8.2 per cent. A day earlier, the company missed on fiscal third-quarter adjusted revenue and posted disappointing guidance. PayPal shed 12.3 per cent despite posting in-line results a day earlier, while Expedia plunged 16.4 per cent as gross bookings fell short of expectations.
After the bell, the tech bellwethers Apple and Amazon reported results.
Apple reported third fiscal quarter results that beat Wall Street expectations for both earnings and sales, driven by stronger services sales that grew 8 per cent on an annual basis.
Overall sales still fell 1 per cent year-over-year, however, and revenue in the company’s iPhone, Mac, and iPad lines were all down year-over-year.
Amazon reported second-quarter earnings on Thursday that sailed past analysts’ estimates and issued guidance that points to accelerating revenue growth. The stock rose more than 7 per cent in extended trading.
The online retail giant’s ad business brought in $10.68 billion in sales in the second quarter, which was a 22 per cent jump from the previous year during the same period, the company said while reporting its latest financial results on Thursday. Amazon’s overall sales grew 11 per cent year over year to $134.4 billion in the second quarter.
Atlassian also reported strong results after the bell.
In other news, the Bank of England on Thursday hiked interest rates by 25 basis points, in the latest move by a global central bank to tame inflation.
Wall Street also assessed the latest economic data, including in-line weekly jobless claims and second-quarter productivity data that showed an uptick.
In commodity related news, UK and Zambia agree on critical minerals and clean energy. £2.5B private sector investment from UK to boost Zambia’s mining, minerals, and renewable energy. £500M government-backed investments included. This aims to diversify UK’s critical mineral supply chains. Zambia is a major copper producer with other crucial minerals.
In sector news, the rise in rates pressured the real estate sector, which dropped more than 1 per cent, while the Cboe Volatility index spiked to its highest level since June. Utilities lost 2.3 per cent.
Futures
The SPI futures are pointing to a 0.1 per cent fall.
Currency
One Australian dollar at 7:20 AM was buying 65.49 US cents.
Commodities
Gold lost 0.31 per cent. Silver dropped 0.73 per cent. Copper added 1.46 per cent. Oil gained 2.59 per cent.
Figures around the globe
European markets closed lower. London’s FTSE fell 0.43 per cent, Frankfurt lost 0.79 per cent, and Paris closed 0.72 per cent lower.
Turning to Asian markets, Tokyo’s Nikkei dropped 1.68 per cent, Hong Kong’s Hang Seng fell 0.49 per cent while China’s Shanghai Composite closed 0.58 per cent higher.
The Australian sharemarket closed 0.10 per cent lower at 7306.
Ex-dividends
AMCIL (ASX:AMH) is paying 4 cents fully franked
Sources: Bloomberg, FactSet, IRESS, TradingView, UBS, Bourse Data, Trading Economics, CoinMarketCap.
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