Title: Stock Market Retreats as Treasury Yields Surge; Walt Disney Posts Impressive Q3 Results
In a turbulent trading session, the stock market experienced a sharp reversal due to a sudden jump in Treasury yields. The S&P 500, which had initially shown promise with a 0.2% increase, ended up slipping by 0.2%, hovering near the significant resistance level of 4,400. Both the Nasdaq and the small-cap Russell 2000 also faced a similar decline of 0.2% and 0.7%, respectively. The Dow Jones Industrial Average followed suit, falling by 0.2%.
Amidst the market turbulence, Walt Disney (DIS) demonstrated impressive performance, with its shares skyrocketing by 7.6% after exceeding forecasts for the September quarter. The 10-year Treasury yield experienced a notable surge of almost 11 basis points, reaching 4.63%.
On the economic front, jobless claims saw a slight improvement, easing by 3,000 over the past week to 217,000. In the technology sector, Nvidia (NVDA) enjoyed positive momentum as its shares surpassed the buy point of a double-bottom base at 476.09.
However, electric vehicle giant Tesla (TSLA) faced challenges as it incurred a 6% loss in afternoon trading, encountering resistance at its 200-day moving average. Conversely, Jackson Financial (JXN) broke out of a cup-with-handle base with significant trading volume, while TransDigm (TDG) witnessed a substantial jump above the 940 buy point of a cup base, experiencing its best day in nearly 12 months.
While some companies delivered positive news, others faced obstacles. HubSpot (HUBS) experienced a reversal, despite surpassing sales and profit expectations. AppLovin (APP) remained volatile after exceeding third-quarter expectations. In contrast, Arm Holdings (ARM) slid by 6% due to its current-quarter forecast falling short of estimates.
In terms of earnings reports, Maplebear (CART) unveiled a loss of $20.86 per share on sales of $764 million. Li Auto (LI) encountered a 3.7% drop, but the company is still in the process of forming a cup base. Similarly, Lyft (LYFT) faced a 3.2% decline as it tested resistance at its 200-day moving average.
Among the market indices, the Innovator IBD 50 (FFTY) remained relatively flat during afternoon trading. However, Duolingo (DUOL) stood out within the IBD 50, surging by 17.5% to reach new record highs. Workday (WDAY) managed to climb back above its 50-day moving average, suggesting a potential turnaround. Copart (CPRT) also showed promise, reaching near the buy point of a flat base at 47.38.
With Treasury yields causing instability, investors are bracing themselves for further market volatility in the uncertain landscape of the stock market.
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