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U.S. Stocks Wobble as Treasury Yields Soar to 14-Year High

Published 10/19/2022, 10:12 PM
© Reuters.
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By Liz Moyer

Investing.com -- U.S. stocks wobbled on Wednesday as a spike in yields on Treasury bonds weighed on the growth sector of the market.

At 9:57 ET (13:57 GMT), the Dow Jones Industrial Average fell 50 points, or 0.2%, while the S&P 500 was down 0.6% and the NASDAQ Composite was down 0.8%.

The move comes despite better than expected earnings by Netflix Inc (NASDAQ:NFLX), which had more subscriber growth than forecast in the third quarter. Netflix shares jumped nearly 15%. Later on Wednesday, Tesla Inc (NASDAQ:TSLA) and International Business Machines (NYSE:IBM) report earnings.

Apple Inc (NASDAQ:AAPL) was said to be cutting back its iPhone 14-Plus production. Its shares were flat on Wednesday.

United Airlines Holdings Inc (NASDAQ:UAL) beat expectations for its third quarter and signaled a strong fourth quarter as travel demand increases. Its shares rose 6.5%.

The 10-year Treasury yield rose to its highest level since mid-2008 after data showed an 8.1% slide in September housing starts. New residential construction dropped, a signal the economy is slowing.

But what investors want to see are concrete signs that inflation is slowing, as the Federal Reserve continues on its aggressive path of interest rate increases.

Oil rose. Crude Oil WTI Futures was up 0.7%, to $82.64 a barrel, while Brent Oil Futures crude rose 0.6%, to $90.58 a barrel. Gold Futures fell 1%, to $1637.

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