Nasdaq Index, Dow Jones, S&P 500 News: Wall Street Struggling as Yields Rise; Uber Plunges

Stock Futures Slip as Dow Notches Longest Winning Streak since December

Stock futures remained flat on Wednesday after the Dow Jones Industrial Average extended its winning streak to its longest since December.

At 12:18 GMT, Dow Futures are trading 39002.00, down 25.00 or -0.06%. S&P 500 Index Futures are at 5203.00, down 10.75 or -0.21% and Nasdaq 100 Futures are trading 18142.25, down 57.25 or -0.31%.

Market Recap

Wall Street experienced a mixed day on Tuesday, with the Dow inching higher by nearly 0.1%, marking its fifth consecutive positive session. The S&P 500 edged up approximately 0.1%, while the Nasdaq Composite slipped 0.1%. Disney shares plummeted over 9% after the entertainment giant missed revenue expectations and provided weak guidance.

Reaction to New Earnings Releases

Lyft and Wynn Resorts saw gains of 5% and 2%, respectively, driven by robust quarterly results. Reddit surged over 14% in premarket trading following its inaugural earnings report as a public entity. However, Uber shares declined 6% due to weaker-than-expected bookings revenue in its first-quarter report.

Analyst Insights

Adam Crisafulli, founder of Vital Knowledge, noted that stocks respond positively to declines in the U.S. Treasury yield. However, he cautioned that if economic growth slows further, there might be a disconnection between Treasurys and equities.

Focus on Earnings and Economic Data

Investors are closely monitoring earnings reports, with Shopify scheduled to release results before the bell. After-market earnings include Airbnb, Instacart, Bumble, and meme stock AMC. Approximately 85% of S&P 500 companies have reported quarterly results, with around 80% surpassing Wall Street expectations, according to FactSet. Traders are also awaiting economic data on wholesale inventories and speeches from Federal Reserve officials, including Vice Chair Philip Jefferson, Boston Fed President Susan Collins, and Fed Governor Lisa Cook.

Short-Term Forecast

The market continues to react to earnings reports and economic indicators, with investor sentiment influenced by both positive and negative developments. Traders should remain vigilant for potential shifts in market sentiment as earnings season progresses and economic data is released.

Technical Analysis

The short-term, intermediate-term and long-term uptrends are intact on Wednesday as bullish investors prepare to defend the 50-day moving average at 5186.71. Trader reaction to this indicator will set the tone into the close.

The nearby range is 5333.50 to 4963.50. The market is currently trading on the strong side of its pivot at 5148.50, providing additional support.