Markets in 5Thursday, October 22
Stocks rise on earnings as oil and Asia slide
US stocks closed higher on Wednesday as profit reports lifted technology, but overnight oil gains and Asian sell-offs have shifted attention back to Middle East developments.
Stocks
S&P 500 gains 0.6% as profit reports lift tech
The S&P 500 rose 0.6%, or 44.60 points, to close at 7,757.17 on Wednesday, Oct 21, according to the Associated Press. Strong quarterly results from SpaceX and Capital One supported the advance, and the index moved closer to the all-time high it set earlier in October. The Nasdaq Composite gained 1.1% to 26,702.86 and the Dow rose 0.7% to 52,856.09, while the Russell 2000 added 0.3%. For the week through Oct 21, the S&P 500 is up 1.3%.
Rates
Ten-year Treasury yield edges up to 5.13%
The 10-year Treasury par yield closed at 5.13% on Oct 21, up 1 basis point from 5.12% the previous day, according to the official Treasury data. The 2-year rose 2 basis points to 4.81%, while the 30-year was unchanged at 5.42%, leaving the 2s10s spread at 32 basis points. A year earlier the 10-year stood at 3.98%, and about a month ago it was 4.96%.
Earnings
Meta beats on revenue while Netflix slides to two-year low
Meta reported third-quarter revenue up 26% to $64.6 billion, above roughly $63.3 billion expected. Its GAAP results included a roughly $9.9 billion legal charge, and shares rose as much as 5% after hours. Netflix closed down 5.3% at $65.04, a two-year low, after weaker fourth-quarter revenue guidance and a cut to its ad revenue outlook to about $2.7 billion from roughly $3 billion.
Global
Asian markets fall as tanker damage lifts oil
Japan's Nikkei 225 fell 2.7% to 62,907.84 and South Korea's Kospi dropped 3.5% to 5,533.77, led by memory chipmakers. Iran's state television reported that seven oil tankers had caught fire and were damaged in the Strait of Hormuz. Hong Kong's Hang Seng fell 3.2% and the Shanghai Composite lost 1.5%. In Europe, the WSJ reported that stocks fell sharply in opening trade as oil rose and tech weighed, while the French-German 10-year spread reached its widest since 2011.
Commodities
Brent climbs above $111 as gold slips
Brent crude rose about 2.9% to $111.97 in overnight trading, after a drone strike on Saudi Aramco's Shaybah field and reports of damage to tankers. Gold fell 1.42% to about $4,082 as higher energy costs raised inflation concerns. The US also ordered some staff out of Saudi embassies. The WSJ Dollar Index closed at 96.92 on Oct 21, down 0.04%, and the euro rose against the weaker dollar.