Wall Street Today | Market Holds on to Rate Pause Rally for One More Day
RECAP
Indexes began to pull back from their winning streaks while 10-year yields dropped around 4.5% after a Treasury auction, and Brent dropped below $80. The $S&P 500 Index(.SPX.US$ squeezed out a bare 0.10% gain of 4.45 points, extending a seven-day winning streak alongside the $NASDAQ(NASDAQ.US$ that held on to a 0.08% gain. The $Dow Jones Industrial Average(.DJI.US$ was left behind, and dropped 0.12%.
MACRO
Powell Calls for Flexibility in Fed Forecast Methods
Stock market investors were pausing for breath ahead of a busy roster of speeches from Federal Reserve officials amid expectations they may try to push back against market expectations the central bank is set to begin significantly cutting interest rates in 2024.
New York Fed President John Williams was due to give the keynote speech at a conference at 1:40 p.m.; Fed Vice Chair for Supervision Michael Barr speaks at the NAHB conference at 2 p.m.; and Fed Vice Chair Phillip Jefferson makes the closing remarks at the research conference at 4:45 p.m.
Federal Reserve Chair Jerome Powell offered no remarks on monetary policy when he welcomed participants to a Fed conference on economic forecasting before the opening bell. Powell on Thursday is due to deliver a more closely watched speech.
"Intellectual rigor has to be combined with flexibility and agility," Federal Reserve Chair Jerome Powell says at a conference celebrating the 100th anniversary of the Fed board’s Division of Research and Statistics.
SECTORS
Oil Extended Declines as Traders Digested Weakening Demand
Global benchmark Brent dropped more than 2% on Wednesday, briefly dipping below $80 a barrel for the first time since July, before clawing back some losses. As the risk premium from the Israel-Hamas has faded in recent weeks, traders’ focus has shifted to demand, which has shown signs of softening.
In China — the world’s biggest crude importer — refining margins are shrinking, oil and fuel stockpiles are swelling, and air travel has yet to rebound sharply. Business and consumer confidence remain low in the wider economy despite government efforts to juice growth.
Meanwhile, Russian shipments are running near a four-month high on the supply front, while industry data showed US crude stockpiles increased by almost 12 million barrels last week. The US benchmark’s prompt spread is also signaling signs of ample supply as the premium for near-term contracts collapsed. Prices for barrels for December and January delivery are negligible now, compared with the $1.75 premium traders were paying last month.
COMPANIES
Disney Posts Earnings after Warner Bros Q3 Ad Disappointment
$Disney(DIS.US$ reported quarterly earnings of $0.82 per share, beating the analyst consensus estimate of $0.70 by 17.14 percent. This is a 173.33 percent increase over earnings of $0.30 per share from last year.
Warner Bros. Reported a Wider-than-expected Q3 Loss
$Warner Bros Discovery(WBD.US$ reported a third-quarter loss of 17 cents a share on revenue of $9.98 billion. Analysts surveyed by FactSet were expecting the entertainment company to report a loss of 9 cents a share on revenue of $9.97 billion.
FDA Approves Lilly's Ozempic-Like Weight Loss Shot
The FDA approved $Eli Lilly and Co(LLY.US$ tirzepatide diabetes drug for chronic weight management in adults with obesity. The drug, named Zepbound, is an appetite suppressant that takes the form of an injection, similar to Ozempic. In a trial of 2,519 patients, the FDA said Zepbound caused an average 5% drop in body weight over 72 weeks.
Sleep Number Faces Q3 Demand Nightmare
$Sleep Number(SNBR.US$ reported financial results that were a nightmare, causing shares of the mattress maker to sink more than 35% intraday on Wednesday.
Roblox Stock Builds Even After Posting Loss
$Roblox(RBLX.US$ "slowed spending growth across most of our major expense categories," Chief Financial Officer Michael Guthrie said in a release, leading to margin improvement on a sequential and year-over-year basis.
Warby Parker Stumbling Blind After Beating Estimates
Eyeglass retailer $Warby Parker(WRBY.US$ sank more than 20% Wednesday despite tying or beating analyst expectations on Q3 results and raising full-year revenue guidance.
Upstart's Looks Down After Worst Trading Day All Year
$Upstart(UPST.US$ continues to find itself in a challenging spot as would-be borrowers back away from loans with high interest rates, and that could help push its volatile stock toward its worst day in about a year.
Source: Bloomberg, Dow Jones, CNBC
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