Stock markets in the United States (US) fell on Tuesday (11/10), ahead of the company's third-quarter results report. Wall Street was dragged down by expectations of a decline in profits amid rising interest rates and inflation. Meanwhile, drugmaker Amgen's gains capped the Dow's losses.
At 9:40 am local time, the Dow Jones Industrial Average was down 57.94 points, or 0.20%, at 29,144.94, the S&P 500 was down 24.75 points, or 0.69%, at 3,587.64, and the Nasdaq Composite was down. 92.97 points or 0.88% at 10,449.13.
Of the 11 major S&P 500 sector indexes, all but defensive consumer staples fell.
Helping stem losses on the Dow, Amgen Inc shares jumped 4.9% after a report said Morgan Stanley increased the drugmaker's stock to "overweight" from "equal weight".
According to Refinitiv data, analysts now expect earnings for S&P 500 companies to have increased 4.1% in the third quarter from a year ago, compared with an 11.1% increase expected in early July.
Major US banks will report quarterly results on Friday that may offer insight into the health of the US economy.
With the latest data on the labor market and inflation pointing to a bigger rate hike by the Fed, Wall Street's main indexes have been on a losing streak in recent sessions amid fears the economy is slipping into recession.
The International Monetary Fund (IMF) cut its global growth forecast for 2023 and saw US growth this year to a meager 1.6%, a downgrade of 0.7 percentage points from July, reflecting an unexpected second-quarter GDP contraction.
Money markets are now pricing in a 92% chance of another 75 basis point hike at the Fed meeting in November.
Amid rising expectations of another big spike in borrowing costs, the 10-year US Treasury bond yield hit a one-day high of 4.006%. While growth stocks recorded losses.
Microsoft Corp, Twitter Inc, Amazon.com, Apple Inc, and Tesla Inc fell between 1% and 3.5%.
The consumer prices report due out on Thursday will offer more clues on inflation, with focus also on the minutes from the Fed's September meeting expected later this week.
"Right now the market wants to look at the data, show the numbers, show us we're bringing inflation down. Until then, the market may be stuck in a 1,000 cut scenario," said Dennis Dick, founder and market structure analyst at Triple D Trading Inc.
The CBOE Volatility Index, also known as Wall Street's fear gauge, rose to 33.57 points, up for the fourth straight session and near a two-week high.
