S&P 500 rises, but rising Treasury yields cap gains ahead of inflation report; European markets retreat as investors gauge inflation outlook, Fed comments
The S&P 500 climbed slightly Tuesday, but struggled for direction as Treasury yields rebounded ahead of the inflation report due later this week. The S&P 500 rose 0.47%, the Dow Jones Industrial Average gained 0.33%, or 112 points, and the Nasdaq Composite was up 0.68%.
Communications services led the broader market higher, underpinned by a rally in Netflix Inc (NASDAQ:NFLX), Meta Platforms (NASDAQ:META), and Warner Bros Discovery (NASDAQ:WBD).
Warner Bros. Discovery rallied more than 8% after Bank of America added the stock its best ideas list. “We anticipate ’23 will be the beginning of our growth and deleveraging thesis for WBD,” BofA said.
Defensive corners of the market including consumer staples and utilities, which tend to serve as a bond proxy, fell as 10-year treasury yields rallied 3%, clawing back losses from a day earlier.
Big tech, meanwhile, traded mostly higher, with Apple Inc (NASDAQ:AAPL) and Microsoft Corporation (NASDAQ:MSFT) in the green, with the latter supported by a positive note from Wedbush.
Coinbase Global (NASDAQ:COIN) rallied more than 10% after detailing plans to slash its workforce by 20% as the cryptocurrency exchange ramps cost cuts amid a weaker crypto backdrop.
In other news, Amazon.com Inc (NASDAQ:AMZN) said it was expanding its prime buy service, which allows merchants to offer prime benefits including free shipping and returns on their own site. Its shares were up 2%.
The pan-European Stoxx 600 closed 0.56% lower provisionally, with retail stocks shedding 1.4% to lead losses as all sectors slid into the red bar autos, which was flat.
German pharma firm Bayer topped afternoon trading in Europe, posting a 4.5% gain after saying its new blood clot drug could make more than 5 billion euros ($5.4 billion) in annual sales.
Source: CNBC, Investing.com