Stocks were relatively unchanged ahead of Federal Reserve Chair Jerome Powell’s remarks. The Dow, S&P 500, and Nasdaq Composite each saw gains of around 0.1% shortly before noon. Throughout the morning, the market experienced volatility, with the major indexes trading both above and below their flatlines.
Shares of Graphic Packaging, which focuses on packaging for consumer goods, hit a 52-week low after a double downgrade by Wells Fargo analyst Gabe Hajde. The downgrade was due to expectations of lower food consumption related to obesity drugs, which could decrease packaged food demand.
The iShares Core U.S. Aggregate Bond ETF and the Vanguard Total Bond ETF, both tracking the bond market, reached their lowest levels since October 2008. Bond prices move in the opposite direction of bond yields.
JPMorgan upgraded solar energy company First Solar to overweight, citing an attractive entry point. The company has strong growth prospects and a backlog extending into the future.
The S&P 500 opened slightly higher, with a 0.2% increase shortly after the market opened. The Dow was relatively flat, while the Nasdaq Composite saw a 0.4% gain.
In premarket trading, Tesla shares dropped over 7% following disappointing third-quarter earnings results. However, Netflix shares jumped nearly 13% after the company reported better-than-expected quarterly results and subscriber numbers. Peloton also slid 6.4% before the bell due to a downgrade from Bank of America.
The three major indexes, the S&P 500, Nasdaq Composite, and Dow, are on track to end the week with losses. The Nasdaq has experienced two consecutive losing weeks.
Federal Reserve Chair Jerome Powell is expected to make similar remarks to last month’s Economic Club of New York speech, emphasizing a “hawkish pause” and a data-dependent approach. AT&T shares climbed over 4% after exceeding analyst expectations in their third-quarter earnings report. However, Blackstone’s third-quarter earnings fell short of expectations, causing the stock to drop nearly 3%.
The benchmark 10-year Treasury yield reached a high of 4.981%, approaching the key 5% mark. Concerns over the growing Treasury auction sizes and the Federal Reserve’s market rate policy are contributing to the increase in yield.
European markets opened lower as investors weigh the impact of the Middle East crisis, as well as earnings and economic data. South Korea’s central bank maintained its benchmark policy rate at 3.5%, while Japan recorded a surprise swing into surplus for its September trade balance.
The chief investment officer of South Korean tech giant Kakao has reportedly been arrested for alleged stock manipulation related to the company’s acquisition of K-pop label SM Entertainment. The financial market watchdog suspects that the Kakao executives inflated SM’s share price to surpass a tender offer price during the acquisition.
