The major U.S. averages on Wednesday seesawed, as stocks struggled for momentum. A post-earnings surge in global economic bellwether FedEx (FDX) was countered by a sell-off in Treasurys.
The S&P (SP500) was last up 0.06% to 5,472.48 points in midday trade, while the blue-chip Dow (DJI) had added 0.11% to 39,155.00 points. The tech-heavy Nasdaq Composite (COMP:IND) had climbed 0.38% to 17,784.83 points.
Of the 11 S&P sectors, six were in the red.
Following a bull run that has seen the S&P 500 (SP500) take out record after record, Wall Street has taken a bit of a breather over the last few trading sessions amid profit-taking and concerns over market breadth.
“A glance at the charts of the major U.S. stock indices suggests a period of uncertainty and indecision as far as investors are concerned. On one hand, the market appears relatively relaxed with the prospect of two, or maybe even just one, 25 basis point rate cut from the Federal Reserve this year. Instead, they’ve transferred their hopes of much looser monetary policy to come in 2025,” David Morrison, senior market analyst at Trade Nation, said.
“On the other hand, inflation remains sticky, recent economic data releases suggest that the economy is slowing, next year’s rate cut predictions could get rolled back as quickly as this year’s and there’s a huge amount of money concentrated into a small number of overvalued corporations … So, while things are relatively quiet on the surface, there’s quite a bit bubbling underneath,” Morrison added.
FedEx (FDX) provided some support to the benchmark index on Wednesday, as it notched an advance of nearly 15%. The parcel delivery giant impressed analysts with its quarterly results and its ability to drive profits through its cost reduction initiatives.
In other earnings-related moves, General Mills (GIS) retreated, after the owner of brands such as Betty Crocker and Cheerios delivered a decrease in quarterly organic net sales.
Investors have their eye on Micron Technology’s (MU) scheduled earnings after the closing bell. The memory chipmaker is anticipated to announce a nearly 78% Y/Y jump in quarterly revenue.
Turning to the fixed-income markets, Treasury yields were higher as traders dumped bonds ahead of a $70B 5-year note auction. The longer-end 30-year yield (US30Y) was up 6 basis points to 4.44%, while the 10-year yield (US10Y) was up 7 basis points to 4.31%. The shorter-end, more rate-sensitive 2-year yield (US2Y) was slightly up to 4.76%.
The fall in U.S. Treasurys also came after the Japanese yen earlier fell to a 38-year low against the greenback (USD:JPY), prompting further hopes for currency intervention from the Asian nation’s government.
“Will the weakening yen ‘reconnect’ with U.S. 10-year yields and drive them higher? The relationship between the Yen and 10-year yield is not spurious. Japan…is the largest foreign owner of U.S. Treasuries, currently over $1T, and much larger than China,” Jim Bianco, president of Bianco Research, said on X (formerly Twitter).
See live data on how Treasury yields are doing across the curve at the Seeking Alpha bond page.
Looking at other notable stock movers, class A shares of Rivian Automotive (RIVN) rocketed around 24% after the loss-making electric vehicle startup said it would form a joint venture with Volkswagen (OTCPK:VLKAF). As part of the deal, the German carmaker will make a $5B investment in Rivian (RIVN).
Whirlpool (WHR) gained about 14% after a Reuters report that German engineering firm Bosch was potentially looking into making an offer for the U.S. home appliance manufacturer.
Read More: Stock Market News Today: Markets struggle for momentum; FedEx surges
