U.S. Averages Struggle, Dollar's Strength to Weigh on Earnings

Barry Adams
18 Apr, 2024
New York City

Stocks advanced in early trading as investors shifted their focus to earnings releases, and Treasury yields hovered near recent highs. 

The S&P 500 index and the Nasdaq Composite lacked direction in choppy trading, and investors debated future rate paths, the impact of sharply higher energy prices on inflation, and escalating tensions between Iran and Israel. 

Crude oil prices eased for the second day in a row after U.S. inventories rose more than expected at the end of last week, suggesting a slightly weakening demand outlook. 

The U.S. dollar's strength is also in focus, as a large number of companies in the S&P 500 index rely on foreign markets for their sales and earnings growth. 

The Japanese yen is trading at a 34-year low, the South Korean won is hovering near an 18-month low, the Indian rupee is at a record low, and the euro and the British pounds are at 4-month lows. 

The Chinese yuan is approaching its record low. 

 

U.S. Indexes and Yields

The S&P 500 index increased 0.07% to 5,023.36, and the Nasdaq Composite decreased 0.03% to 15,678.15. 

The yield on 2-year Treasury notes edged higher to 4.95%, 10-year Treasury notes inched down to 4.59%, and 30-year Treasury bonds edged lower to 4.71%.

WTI crude oil decreased $0.48 to $82.21 a barrel, and natural gas prices increased 5 cents to $1.76 a thermal unit.

Gold increased by $17.22 to $2,383.56 an ounce, and silver rose 22 cents to $28.43. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.88.

 

U.S. Stock Movers

D.R. Horton increased 5.2% to $153.31 after the homebuilder reported better-than-expected results in the fiscal second quarter. 

Revenue in the March quarter increased 14% to $9.1 billion from $7.9 billion, net income rose to $1.2 billion from $941 million, and diluted earnings per share advanced to $3.52 from $2.73 a year ago.  

Blackstone decreased 1.8% to $121.0 after the alternative asset manager reported better-than-expected quarterly results. 

The company also lowered its cash dividend to 83 cents per share, payable on May 6 to shareholders on record on April 29. 

Total revenue increased to $3.7 billion from $1.4 billion, net income soared to $1.7 billion from $210 million, and diluted earnings per share advanced to $1.11 from 11 cents a year ago. 

The company repurchased 0.7 million common shares in the quarter and 3.4 million common shares over the last twelve months. 

Total assets under management rose to $1.06 trillion from $991 billion a year ago. 

Equifax declined 9.6% to $214.04 after the credit score company's second quarter outlook fell short of market expectations. 

Revenue in the first quarter increased 7% to $1.4 billion from $1.3 billion, net income to $124.9 million from $112.4 million, and diluted earnings per share advanced to $1.01 from 92 cents a year ago. 

The company projected revenue in the second quarter to range between $1.41 billion and $1.43  billion and diluted earnings per share between $1.65 and $1.75.