US stocks slipped on Wednesday amid a flood of corporate earnings and as investors awaited the results from electric vehicle giant Tesla later on today.
Wall Street analysts anticipate the Elon Musk-owned company will announce positive earnings, following robust sales in the third quarter. This sales surge occurred as American consumers rushed to avail themselves of an EV tax allowance that had been reduced by President Donald Trump. The EV maker declined nearly 2%.
Investors’ sentiment was also dented following a Reuters report that suggested the Trump administration was mulling over a plan to curb a bewildering array of software-powered exports to China, ranging from laptops to jet engines. This proposed measure is intended as a retaliation against Beijing’s most recent round of restrictions on rare earth exports.
At 11:17 a.m. ET, the Dow Jones Industrial Average fell 109.83 points, or 0.23%, to 46,814.91. The S&P 500 lost 20.27 points, or 0.30%, to 6,715.08, while the Nasdaq Composite lost 153.97 points, or 0.67%, to 22,799.70.
As of 10:15 AM Eastern Time, the S&P 500 slipped 0.1%, the Dow Jones Industrial Average was down 0.2%, and the Nasdaq Composite was 0.3% lower.
At 09:30 a.m. the Dow Jones Industrial Average rose 6.14 points, or 0.01%, to 46,930.88, the S&P 500 gained 2.53 points, or 0.04%, to 6,737.88 and the Nasdaq Composite lost 19.34 points, or 0.08%, to 22,934.33.
In the bond market, the yield on the 10-year Treasury fell to 3.97% from 3.98% late on Tuesday.
Gainers and Losers
Netflix shares plunged 10.2% after missing earnings expectations.
Beyond Meat stock further climbed 48.9%, a day after the plant-based meat maker’s shares surged 146%.
AT&T shares fell 2.3% after the firm reported its quarterly profit.
Texas Instruments stock shed 5.1% after its third quarter profits dropped slightly short of analysts’ estimates.
Conversely, shares in Intuitive Surgical soared 16.3% and Boston Scientific climbed 4.2% after both reported better-than-expected quarterly earnings.
Meanwhile, Mattel shares fell 3.8% after the Barbie-maker missed Wall Street expectations for its third quarter revenue and profit.
Bullion Market
Gold prices declined on Wednesday, following their sharpest single-day slump in five years during the previous trading session, as investors opted to book profits ahead of the release of crucial US inflation figures.
Spot gold was down 1.7% at $4,054.69 per ounce, as of 09:22 a.m. ET (1322 GMT), after having risen to a session high of $4,161.17 earlier.
US gold futures for December delivery fell 0.9% to $4,072.10 per ounce.
In other metals, spot silver dropped 1% to $48.27 per ounce. Platinum fell 0.1% to $1,549.85, and palladium was down 1.6% at $1,430.
Crude Oil
Oil prices registered a second day of strong gains on Wednesday, buoyed by hopes of progress concerning a trade agreement with the US, China, and India.
Brent crude futures rose $1.19, a climb of 1.9%, reaching $62.51 a barrel as of 1313 GMT. Similarly, US West Texas Intermediate (WTI) crude futures climbed $1.24, or 2.2%, to stand at $58.48.
The market reacted positively after President Trump confirmed he had spoken with Indian Prime Minister Narendra Modi on Tuesday. Trump added that Modi had given assurances that New Delhi would be limiting its oil purchases from Russia.
Investors are also closely monitoring the status of US-China trade discussions, as officials from both nations are scheduled to convene this week in Malaysia.
