Arrow-right Camera
The Spokesman-Review Newspaper

The Spokesman-Review Newspaper The Spokesman-Review

Spokane, Washington  Est. May 19, 1883
Clear Day 83° Clear
News >  Business

U.S. stocks little changed as traders parse earnings

Aug. 4, 2022 Updated Thu., Aug. 4, 2022 at 5:48 p.m.

Traders returned to the floor of the New York Stock Exchange on May 24 wearing masks and adapting to new social distancing protocols.  (Washington Post )
Traders returned to the floor of the New York Stock Exchange on May 24 wearing masks and adapting to new social distancing protocols. (Washington Post )
By Isabelle Lee </p><p>and Denitsa Tsekova Bloomberg

U.S. stocks wavered on Thursday as traders parsed various corporate earnings against a backdrop of aggressive interest-rate hikes by global central banks. The U.S. yield curve remained inverted as recession fears persisted.

The S&P 500 ended the session little changed after fluctuating throughout the session.

The Nasdaq 100 closed higher for the second straight day after swinging between modest gains and losses.

While the tech-heavy index was buoyed by Amazon.com and Advanced Micro Devices later in the session, it was also dragged down by Fortinet after the firm trimmed its service-revenue forecast.

Eli Lilly, which dropped after missing Wall Street expectations for second-quarter revenue, weighed on the S&P 500 Index. Thin liquidity in the summer also tends to amplify market moves.

Treasury yields wobbled throughout the session, with the 10-year rate around 2.66% after pushing past 2.80% on Wednesday.

A flurry of economic data that released this week assuaged fears of a downturn while hinting at stabilizing growth.

But the bond market, especially the persistently inverted Treasury yield curve, is flashing warnings on the economy amid a global wave of monetary tightening.

All eyes will be on the U.S. jobs report on Friday for further clues about the Federal Reserve’s path of rate hikes.

“There’s an intense tug-of-war happening in the economy and markets,” said Dan Suzuki, deputy chief investment officer at Richard Bernstein Advisors.

“On one side, you have a narrative that reasonable growth is going to support continued inflation pressure and keep the Fed hiking. The other narrative is that slowing growth is going to ease inflation and allow the Fed to stop hiking.”

On Thursday, Cleveland Fed President Loretta Mester reiterated the central bank’s promise to bring down inflation by raising interest rates.

Her counterparts this week have also been backing this hawkish stance, forcing markets to recalibrate after initially expecting a dovish pivot Fed Chair Jerome Powell hinted at last week.

U.S.-China tension also remains among the uncertainties clouding the outlook.

China likely fired missiles over Taiwan during military drills Thursday, Japan said, part of Beijing’s biggest cross-strait exercises in decades after House Speaker Nancy Pelosi visited the self-ruled island.

West Texas Intermediate stayed below $90 a barrel, a level last seen in the weeks leading up to Russia’s invasion of Ukraine. Gold advanced and Bitcoin fell.

The Spokesman-Review Newspaper

Local journalism is essential.

Give directly to The Spokesman-Review's Northwest Passages community forums series -- which helps to offset the costs of several reporter and editor positions at the newspaper -- by using the easy options below. Gifts processed in this system are not tax deductible, but are predominately used to help meet the local financial requirements needed to receive national matching-grant funds.

Active Person

Subscribe now to get breaking news alerts in your email inbox

Get breaking news delivered to your inbox as it happens.