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Stock Market Today: S&P 500 rally stalls as Treasury yields continue march

Published 05/08/2024, 08:03 AM
Updated 05/09/2024, 04:14 AM
© Reuters.
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Investing.com-- The S&P 500 closed flat Wednesday, as the recent rally stalled in the wake of rising Treasury yields, while a mixed bag of corporate earnings weighed on investor sentiment.

At 16:00 ET (20:00 GMT), Dow Jones Industrial Average rose 172 points, or 0.4%, S&P 500 ended flat, and NASDAQ Composite fell 0.2%. 

Uber falls short on earnings stage, but Reddit surprises to upside

Uber Technologies (NYSE:UBER) stock fell more than 5% after the ride-hailing firm posted a surprise quarterly loss as gross bookings of $37.7 billion in the quarter fell short of estimates or $37.93B.  

But the dip in the stock is likely a buying opportunity, Wedbush Securities said in a note, as the "underlying business remains healthy" and remains a "dominant global mobility and delivery platform with multiple drivers of long-term growth."

Rival Lyft (NASDAQ:LYFT) fared much better, rising 7% after projecting higher-than-expected gross bookings and a core profit for the current quarter.

Reddit (NYSE:RDDT) gained 4% after the social media platform reported stronger-than-expected first-quarter earnings, as well as an upbeat second quarter outlook, in the company’s first earnings season as a publicly traded entity. 

Online lending platform Upstart (NASDAQ:UPST) fell nearly 6% after it offered weak guidance for the current quarter. 

Electric vehicle maker Rivian Automotive (NASDAQ:RIVN) cut losses to end just higher on the day even after its bigger-than-expected first-quarter loss continued to stoke worries about weaker demand for EVs.

Treasury yields rise after lukewarm 10-year Treasury auction 

Treasury yields rose after the 10-year Treasury auction on Wednesday resulted in a lower-than-expected yield amid uncertainty about the timing of rate cuts ahead.

The notes were awarded at 4.483%, just below the pre-sale, or when-issue, rate of 4.473%, signaling meagre investor appetite for the belly of the yield curve, which typically reflects rates maturing between ten and two years.

The results come just as Fed officials continue to signal that rates will remain steady in the near-term, with further fed speakers set to deliver remarks this week.

Energy stocks slip even as oil prices settle higher

Energy stocks gave up earlier gains even as oil prices from rebound from session lows, shrugging off data flagging weaker energy demand ahead of the U.S. summer driving season. 

APA Corporation (NASDAQ:APA), Phillips 66 (NYSE:PSX), Coterra Energy Inc (NYSE:CTRA) were among the biggest energy gainers on the day.

(Peter Nurse, Ambar Warrick contributed to this article.)

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