U.S. Averages Attempt to Rebound, Treasury Yields In Focus

Barry Adams
10 Nov, 2023
New York City

The rebound in Treasury yields kept stock investors focused on the bond market after the broader market index rallied for eight sessions in a row.

The S&P 500 index and the Nasdaq Composite attempted to rebound after Federal Chair Jerome Powell commented that more work may be needed to cool inflation to 2%.

Chairman Powell reminded investors that interest rates may not be restrictive enough and that more rate hikes may be needed to cool inflation, but the policy committee will review the incoming data in total at one meeting at a time.

The comments halted the eight-day rally in the S&P 500 index and the nine-day advance in the Nasdaq Composite after the yield on 2-year Treasury notes rebounded above 5%.

Market indexes attempted to rebound in early trading and overlook the rise in Treasury yields, led by advances in tech companies and financial services providers.

 

U.S. Indexes and Yields

The S&P 500 index increased 0.4% to 4,375.14, and the Nasdaq Composite rose 0.4% to 13,682.03.

The yield on 2-year Treasury notes increased to 5.01%, 10-year Treasury notes inched higher to 4.60%, and 30-year Treasury bonds edged up to 4.72%.

Crude oil decreased $0.93 to $76.63 a barrel, and natural gas prices rose 2 cents to $3.03 a thermal unit.

Gold decreased $10.43 to $1,946.45 an ounce after bond yields edged lower and the dollar weakened.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.52.

 

U.S. Stock Movers

Wynn Resorts decreased 5% to $86.0 after the casino operator reported better-than-expected revenue and earnings in its latest quarter.

Revenue in the third quarter increased to $1.7 billion from $889 million; net loss shrank to $120.5 million from $207.9 million; and diluted loss per share fell to $1.03 from $1.27 a year ago.

Revenue at casino properties located in Macau rebounded following the resumption of travel after the end of COVID restrictions.

Operating revenue at Wynn Palace rose to $524.8 million from $75.2 million, and at Wynn Macau, it jumped to $295.0 million from $40.4 million a year ago.

Las Vegas operations also showed sustained revenue growth in the quarter.

Operating revenue increased to $619 million from $544.4 million, and the table game win percentage for the third quarter was 26%, falling near the upper end of its expected range between 22% and 26%.

Operating revenue at Encore Boston Harbor decreased to $210.4 million from $211.8 million, and table game win percentage decreased to 20.8% from 21.1% a year ago.

Trade Desk plunged 24% to $58.41 after the company reported third-quarter results and offered a cautious outlook.

Revenue increased 25% to $493 million from $395 million, net income advanced to $39 million from $16 million, and diluted earnings per share rose to 8 cents from 3 cents a year ago.

The company repurchased $90 million of Class A common stock in the third quarter, and as of the end of September, the company had $273 million available and authorized for its own stock repurchase.

The company estimated fourth-quarter revenue of at least $580 million, a less-than-expected $600 million by some analysts, and adjusted operating earnings of $270 million.

Chief executive Jeff Green confirmed in the earnings call that advertisers have turned cautious in the automotive and consumer electronics industries.

"We saw some reduction in brand spend in verticals such as automotive and consumer electronics, for instance, specifically around cell phones and media and entertainment,” said Green.

“Some of these industries have been recently impacted by strikes, such as the U.S. auto industry,” Green added during the call with investors.

Doximity increased 16% to $23.81 after the company reported better-than-expected quarterly results.

Revenue in the fiscal 2024 second quarter ending in September increased 11% to $113.6 million from $102.2 million, net income jumped to $30.6 million from $26.3 million, and diluted earnings per share rose to 15 cents from 12 cents a year ago.

The company anticipated revenue in the fiscal third quarter ending in December in the range of $127 million and $128 million and adjusted EBITDA between $61 million and $62 million.

The healthcare professional company updated its full-year guidance to between $460 million and $472 million and adjusted EBITDA to between $207 million and $219 million.

At the time of announcing previous quarterly results, the company had estimated annual revenue between $452 million and $468 million and EBITDA between $193 million and $209 million.

The company's board authorized $70 million of its own stock repurchases over the next year.