Stock market today: Most of Wall Street slips, threatening a 4-day winning streak
Steam rises from a vent at a work site near the New York Stock Exchange, center, on Wednesday, May 8, 2024, in New York. World shares are mostly higher after U.S. stocks held relatively steady on Wall Street. (AP Photo/Peter Morgan)
NEW YORK (AP) — Most U.S. stocks are slipping Wednesday, threatening to end a four-day winning streak for the S&P 500.
The index at the heart of many 401(k) accounts was 0.4% lower in early trading. The Dow Jones Industrial Average was down by 5 points, or less than 0.1%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.6% lower.
Uber Technologies slumped 8.9% after reporting worse results for the latest quarter than analysts expected. It also gave a forecasted range for bookings in the current quarter whose midpoint fell below analysts’.
Shopify tumbled 21.1% despite reporting better profit and revenue for the latest quarter than analysts expected. The company, which helps people and businesses sell things online, said its revenue growth would likely slow this quarter and that it would likely make less profit off each $1 in revenue.
Intel fell 2.4% after saying the U.S. Commerce Department revoked licenses for exports to a Chinese customer. That could cause its revenue for the current quarter to fall below the midpoint of the forecasted range it had earlier given.
They helped to offset Lyft, which revved 6.2% higher after topping expectations for profit and revenue. It said growth was particularly strong for early-morning, commute and weekend-evening trips.
Reddit was another big winner and rose 6.6% after delivering its first profit report as a publicly traded company. It reported a milder loss and better revenue than expected, while also giving a stronger-than-expected forecast for revenue in the current quarter.
Arista Networks climbed 3.2% for one of the biggest gains in the S&P 500 after topping expectations for both profit and revenue.
Most companies have been reporting stronger profits for the start of the year than analysts expected. That and newly revived hopes for coming cuts to interest rates by the Federal Reserve have helped the U.S. stock market to recover from its rough April.
Treasury yields have largely been easing since Federal Reserve Chair Jerome Powell said last week that it remains closer to cutting its main interest rate than hiking it, despite a string of stubbornly high readings on inflation this year. A cooler-than-expected jobs report on Friday, meanwhile, suggested the U.S. economy could pull off the balancing act of staying solid enough to avoid a bad recession without being so strong that it keeps inflation too high.
The yield on the 10-year Treasury recovered some of those losses to add more pressure on the stock market. It rose to 4.48% from 4.46% late Tuesday.
In stock markets abroad, indexes fell across much of Asia. Japan’s Nikkei 225 dropped 1.6% after Nintendo forecast that its net profit would fall in the upcoming fiscal year and announced that news of a successor product to its popular Switch device will be made by March 2025.
Stock indexes rose modestly in Europe.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.