The Dow Jones Industrial Average Gained 100 Points Despite Bumpy Trading As Investors Weighed Strong Results Against Increasing Yields

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Last Updated on October 19, 2022 by Bitfinsider

Wednesday was another day in which Wall Street battled to extend its surge, but despite another good batch of corporate earnings, the market managed to push higher.

The Dow Jones Industrial Average rose by 108 points, which is equivalent to a 0.4% increase. Each of the S&P 500 and the Nasdaq gained 0.1% of their value.

The tepid moves came despite the fact that Netflix shares increased by 15% after the streaming giant posted earnings and revenue that beat estimates as well as strong subscriber growth for the third quarter. Additionally, the tepid moves occurred despite the fact that Netflix posted strong subscriber growth for the quarter. The stock price of United Airlines increased by more than 7 percent after the company reported revenue and earnings that surpassed analysts’ expectations.

The strong beginning to earnings season comes at a time when many on Wall Street have been lowering their earnings predictions and investors are concerned about the possibility of a recession. Even though equity markets have been on a tear through the first two trading days of the week, the rates on Treasury bonds continue to be elevated and even increased on Wednesday, which suggests that concerns about a recession are still very much alive.

On Wednesday, the yield on the 10-year Treasury note increased to 4.073%.

Given the current oversold conditions and the lowered expectations, the earnings season for corporations may aid investor confidence to some degree, which is a positive aspect. “Until we see 2-year and 10-year yields start to decline, we think traders and investors should remain wary of expecting too much from this rally,” said Nick Colas of DataTrek Research. This should help equities keep their footing, which should help traders and investors remain wary of expecting too much from this rally.

JD.com, a Chinese technology stock, was one of the Nasdaq’s worst performers today, losing more than 4% of its value. Despite exceeding analysts’ forecasts for the third quarter, Abbott Labs’ stock fell more than 7%, making it one of the worst performers in the S&P 500.

Earnings season for technology companies will be in full gear the next week, but IBM and Tesla are scheduled to report on Wednesday. Later in the week, social media company Snap will release their report.

In terms of economic statistics, market participants are anticipating the release of housing starts on Wednesday. In addition to that, the so-called Beige Book of the Federal Reserve, which is the central bank’s report on the present state of economic conditions, is going to be made public.

The adjustments that took place on Wednesday followed another day of robust performance for financial markets, with the Dow rising approximately 337 points and the S&P 500 adding 1.1%.


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