S&P 500 falls as Nvidia slip, rising yields overshaddow quarterly earnings
Investing.com — The S&P 500 fell Monday as investor sentiment was soured by Nvidia-led weakness in chip stocks and a jump in Treasury yields following stronger retail sales data that boosted bets on a Fed rate hike by year end.
The Dow Jones Industrial Average fell 0.3% or 100 points, the Nasdaq gained 0.5%, and the S&P 500 fell 0.4%.
Treasury yields continued their surge higher, with the yield on the 2-year treasury rising to a 17-year high after better-than-expected retail sales pointed to ongoing economic strength, suggested the Fed still has more work to do.
Retail sales rose 0.7% last month, markedly beating economists’ forecast for a 0.3% rise. The retail sales control group – which has a larger impact on U.S. GDP – rose 0.6% well above expectations for a 0.1% rise.
While a November rate hike remained low at 10%, the odds of a December hike jumped to 42% from 26% the prior week, according to Investing.com’s Fed Rate Monitor Tool.
Bank of America Corp (NYSE:BAC) reported quarterly results that topped Wall Street, sending its share more than 2% higher.
Goldman Sachs’ Q3 earnings, however, missed estimates amid losses from its real investment and Greensky fintech business.
The bank suffered a $358 million write down on its real estate investment as the sector has come under pressure from a sharp surge in interest rates.
Johnson & Johnson (NYSE:JNJ) upgraded its annual guidance on performance after reporting quarterly results that beat on the top and bottom lines, but the pharmaceutical company’s stock was 1% lower.
The company now sees annual sales in a range of $83.6 to $84 billion from a prior estimate of $83.2 billion to $84 billion, with adjusted EPS forecast between $10.07 and $10.13 from $10.00 to $10.10
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