Stock Market Update: Tuesday's Market Moves and Key Events (April 16th, 2024)

Stock Market Update: Tuesday's Market Moves and Key Events (April 16th, 2024)

The Dow Jones Industrial Average eked out a gain Tuesday, after a rollercoaster of a session. Treasury yields weighed on the market, while oil prices edged lower. In the latest batch of earnings, UnitedHealth Group posted strong results despite a messy quarter. And Bank of America topped expectations but reported big paper losses on a key portion of its bond portfolio. After the bell, earnings from United Airlines are scheduled to land. Boeing is just one of its issues.

Key Events

  • The Dow Jones Industrial Average snapped its losing streak on a mixed day for the broader market in the face of rising bond yields.
  • The Dow rose 64 points, or 0.2%. It had fallen in six straight sessions.
  • The S&P 500 fell 0.2%.
  • The Nasdaq Composite fell 0.1%.
  • The 2-year Treasury yield rose to 4.961% and briefly crossed 5%.
  • The 10-year yield was up to 4.657%.
  • Rising yields have weighed on stocks as traders increasingly bet the Federal Reserve will need to keep interest rates steady for the near future.
  • Federal Reserve Chair Jerome Powell said as much during a discussion on Tuesday when he noted recent data has shown a lack of further progress in reaching the central bank’s 2% inflation goal.
  • “The recent data have clearly not given us greater confidence, and instead indicate that it’s likely to take longer than expected to achieve that confidence,” Powell said.
  • Markets waffled up and down following Powell’s comments.
  • Fed-fund futures put odds of a June rate cut at 16.9% from 21.3% on Monday, according to the CME FedWatch Tool.
  • Markets are also watching to see how Israel responds to Iran’s missile and drone attacks from over the weekend.
  • “The uncertainty is gonna live with the markets now for a bit, so we're just going to have to deal with this,” Sevens Report Research’s Tom Essaye told Barron’s. “The best scenario is that it doesn't get worse.”
  • Treasury yields rise for the second consecutive day, after U.S. March industrial production met expectations and Fed Chair Powell said it may take longer than expected to cut interest rates.
  • The 10-year gains 0.030 percentage point to 4.657% and the two-year gains 0.026 p.p. to 4.961%.
  • Their inverted spread is the narrowest since February.
  • Odds that the Fed will keep rates at current levels three meetings from now, in July, rise on the CME's FedWatch to 54% from 25% a week ago, right before the March CPI surprise.
  • Fed governor Bowman has a fireside chat tomorrow at 7:15 pm E.T. in Washington, D.C.
  • Crude oil futures settle slightly lower in rangebound trade with concerns over tension in the Middle East simmering in the background.
  • Focus will turn to Wednesday's EIA inventories report, which is expected to show crude stocks up by 600,000 barrels at 457.9 million barrels, according to a Wall Street Journal survey of analysts.
  • Draws of 1 million barrels and 400,000 barrels, respectively, are seen for gasoline and distillates.
  • WTI for May delivery settles down 0.1% at $85.36, and June Brent slips 0.1% to $90.02.

FAQ's

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Marvell Technology, Inc.
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$638.00
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4:10 PM
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$195.74
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-0.52% (-$1.02)
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4:10 PM
$14.65
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DENTSPLY SIRONA Inc.
4:10 PM
$
BRK.B
% (-$)
Berkshire Hathaway Inc. New
$47.51
BAC
-0.95% (-$0.45)
Bank of America Corporation
4:10 PM
$135.77
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-2.20% (-$3.06)
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8:10 PM
$103.70
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1.16% ($1.19)
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$673.82
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Thermo Fisher Scientific Inc
6:45 PM
$321.68
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-0.48% (-$1.56)
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$249.37
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$1273.46
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$230.50
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8:20 PM
$95.41
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$82.10
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0.24% ($0.20)
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$284.69
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$508.83
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$199.47
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$292.87
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8:20 PM
$253.56
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$179.49
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GE Aerospace
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$1118.25
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Altria Group, Inc.
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$101.06
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$646.15
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Citigroup, Inc.
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$604.18
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Lockheed Martin Corporation
8:10 PM
$191.01
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$37.53
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Fidelity National Information Services, Inc.
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$452.29
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$90.58
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$198.91
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$450.31
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S&P Global Inc.
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$877.55
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Micron Technology, Inc.
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$224.46
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6:55 PM
$11.60
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$152.76
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Target Corporation
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$304.16
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Automatic Data Processing, Inc.
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$108.67
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Estee Lauder Companies, Inc.
6:50 PM
$198.68
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8:25 PM
$150.80
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$355.11
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$63.80
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Mondelez International, Inc.
7:05 PM
$163.03
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3.21% ($5.07)
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7:05 PM
$145.06
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-1.57% (-$2.32)
TJX Companies, Inc.
7:05 PM
$155.83
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-3.27% (-$5.27)
Booking Holdings Inc.
8:00 PM
$81.26
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-2.13% (-$1.77)
American International Group, Inc.
6:45 PM
$75.92
GM
-1.67% (-$1.29)
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8:35 PM
$76.78
DAL
-3.13% (-$2.48)
Delta Air Lines, Inc.
6:55 PM
$98.56
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-0.25% (-$0.25)
Zimmer Biomet Holdings, Inc.
7:05 PM
$94.04
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-3.44% (-$3.35)
Colgate-Palmolive Company
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$483.45
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-1.55% (-$7.60)
Moody's Corporation
7:05 PM
$98.82
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-4.59% (-$4.75)
MetLife, Inc.
6:45 PM
$33.64
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-0.36% (-$0.12)
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8:20 PM
$5.05
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0.60% ($0.03)
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$110.15
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-1.93% (-$2.16)
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$80.14
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0.38% ($0.30)
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8:00 PM
$132.69
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-4.62% (-$6.42)
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6:55 PM
$422.07
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0.26% ($1.10)
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$196.75
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0.29% ($0.56)
Palantir Technologies Inc.
7:05 PM