Stocks slip as earnings flurry continues: Stock market news today

U.S. stocks moved lower Wednesday at the open as investors digested another flurry of corporate earnings, including Morgan Stanley (MS).

The S&P 500 (^GSPC) slid by 0.47%, while the Dow Jones Industrial Average (^DJI) edged down by 0.31%. The technology-heavy Nasdaq Composite (^IXIC) slipped by 0.73%.

Bonds yields were higher after Britain’s inflation rate slowed last month but remained above 10%. The yield on the 10-year note climbed to 3.6%, while rate-sensitive 2-year note yields rose to 4.24% Wednesday morning.

Stocks had closed flat on Tuesday amid an earnings parade that included results from Bank of America (BAC) and Goldman Sachs (GS).

On Wednesday, Morgan Stanley came into the mix, reporting that its first-quarter profit fell amid continued pressure on its investment banking unit. Shares were down more than 2% at the open.

One of the sore losers after the closing bell on Tuesday was Netflix (NFLX). The stock sank more than 10% after the streaming giant posted mixed results as it pulled back on its crackdown for password sharing. It pared losses, however, and was down 3% Wednesday morning.

The story was different for Western Alliance (WAL). The regional lender said that its deposits climbed by $2 billion at the end of the first quarter. The stock rallied 19%.

More earnings are on tap this week. On Wednesday, Zions (ZION), Tesla (TSLA), and International Business Machines Corporation (IBM) are due after the market closes.

Meanwhile, US Bancorp (USB) posted higher revenue for the first quarter on the back of rising interest rates and its acquisition of MUFG Union Bank. The stock edged up near 1% following the results.

With earnings season heating up this week, “82% of companies are beating and by a margin of 7.6%. The earnings recession wallop the bears are expecting has not materialized,” the team at Fundstrat Global Advisors wrote in a note to clients. “1Q23 earnings season will ultimately enable the S&P 500 to push to new highs for the year,”

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Meanwhile, little volatility as of late has enabled a continued easing in financial conditions, which in turn has “helped cement investors’ conviction that the Fed [is] set to deliver another hike in just two weeks’ from now, which was supported by the latest round of FOMC speakers,” Jim Reid and colleagues at Deutsche Bank wrote in a note to clients.

St. Louis Fed President James Bullard said on Tuesday in an interview that “Wall Street’s very engaged in the idea there’s going to be a recession in six months or something, but that isn’t really the way you would read an expansion like this.” Bullard also didn’t rule out more interest rate hikes.

Separately, Atlanta Fed President Raphael Bostic said he favors another rate hike and then holding them above 5% for “quite some time.” While officials offer more signals of another rate hike, the Fed will be releasing its Beige Book, which will provide detailed information from the 12 Fed districts about economic conditions.

Chicago Federal Reserve President Austan Goolsbee is expected to speak on Wednesday ahead of Fed’s blackout period, which starts on Saturday.

Here are some other trending tickers on Yahoo Finance:

• United Airlines Holdings, Inc. (UAL): The airline giant reported a loss in the first quarter despite travel rebounding. United anticipates earnings of $3.50 to $4 a share in the second quarter, executives said on the earnings call.

• Intuitive Surgical, Inc. (ISRG): The company reported earnings on Tuesday that showed a massive resurgence in robotic surgery procedures during the March quarter.

• Abbott Laboratories (ABT): Abbott posted a quarterly profit above expectations despite a dramatic slowdown in sales of Covid tests.

Elsewhere, bitcoin (BTC) slid below $30,000 on Wednesday, which also led to a sell-off in the broader crypto market, with ether (ETH) dipping below $2,000.

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Dani Romero is a reporter for Yahoo Finance. Follow her on Twitter @daniromerotv

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