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Stock Market News: Dow Closes Higher
The broader market was mixed.
Last Updated:
April 16, 2024 at 7:40 PM EDT
What to Watch Today
The Dow Jones Industrial Average eked out a gain Tuesday, after a rollercoaster of a session.
Markets reacted after Federal Reserve Chair Jerome Powell delivered remarks at a discussion in Washington and struck a more hawkish tone.
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
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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.
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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.