Stocks Rise In Volatile Session After Tech Stocks Overcame Early Weakness

Barry Adams
21 Jul, 2023
New York City

Market indexes on the final day of this week are expected to trade volatile after expiry of options and futures add a new dimension. 

Tech stocks rebounded from a bruising session on Thursday after tech-heavy Nasdaq dropped 2%.

Market sentiment has decidedly stayed positive after eight weeks rallying and bearish voices of looming recession, stubborn inflation and higher interest rates ahead have been drowned out. 

With the recent cooling inflation trend, the Federal Reserve's policy meeting next week is already forcing investors to take sides. 

Most market participants are factoring a rate hike of 25 basis points at the Fed's policy meeting next week but what happens to rates after the next meeting is dividing investors in two camps, higher investors for longer and rate pause followed by a gradual decline in rates. 

Investors also reacted to the new batch of corporate results and CSX and American Express fell on earnings worries. 

 

U.S. Indexes & Yields 

The S&P 500 index traded higher 0.1% to 4,542.43 and the Nasdaq Composite futures edged up 0.2% to 14,104.76. 

The yield on 2-year Treasury notes decreased to 4.84%, 10-year Treasury notes inched lower to 3.82% and 30-year Treasury bonds edged down to 3.88%. 

Crude oil increased $0.45 to $76.10 a barrel and natural gas prices decreased 2 cents to $2.73 a thermal unit. 

 

Stock Movers 

CSX Corporation declined 4% to $32.34 after the railroad operator reported earnings that missed some investors' expectations. 

American Express declined 3.3% to $170.89 after the payment processor reported weaker-than-expected revenue but earnings were ahead of market expectations. 

AutoNation Inc plunged 9.2% to $160.68 despite the largest automotive dealer network operator reporting better-than-expected revenue and earnings. 

Capital One Financial Corp rose 0.6% to $115.58 after the credit card lender and banking services provider reported mixed quarterly results. 

The company also reported deposits at the end of the quarter declined 2%, confirming the declining trend at all major banks and regional banks. 

Intuitive Surgical, Inc 2.5% to $338.05 after the robotic surgery device maker reported weaker-than-expected revenue in system sales but the company met earnings expectations.