S&P 500 Extends Losses to Third Day, 10-Year Treasury Yield Hovers at 3-Month High

Barry Adams
23 Oct, 2024
New York City

Stock market indexes on Wall Street traded down for the third session in a row as bond yields advanced. 

The S&P 500 index declined 0.4%, the Nasdaq Composite fell 0.5%, and crude oil prices dropped 2% amid rising supply. 

Market indexes were under pressure for the third day in a row as the yield on 10-year Treasury notes ticked higher to a three-month high of 4.24%. 

Strong economic data and growing worries of budget deficits dampened market sentiment ahead of the presidential election on November 5. 

On the earnings front, Starbucks, Coca-Cola Company, Boeing, and Seagate Technology declined after releasing their quarterly results. 

 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.4% to 5,832.83, the Nasdaq Composite fell 0.5% to 18,485.86, and the Russell 2000 index declined 0.4% to 2,231.53. 

For the year so far as of Monday, the S&P 500 index is up 22%, the Nasdaq Composite has advanced 26%, and the Russell 2000 index has gained 10.9%. 

The yield on 2-year Treasury notes edged higher to 4.06%, 10-year Treasury notes inched up to 4.25%, and 30-year Treasury bonds inched higher to 4.53%.

WTI crude oil decreased $1.50 to $70.24 a barrel, and natural gas prices edged up 1 cent to $2.32 a thermal unit.

Gold fell by $0.42 to $2,746.12 an ounce, and silver decreased by $0.24 to $34.48.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 104.52.

 

U.S. Stock Movers

Texas Instruments increased 2.5% to $198.85 after the advanced semiconductor reported better-than-expected quarterly results.

Revenue in the third quarter declined 8% to $4.2 billion from $4.5 billion, net income dropped 20% to $1.36 billion from $1.70 billion, and diluted earnings per share fell 21% to $1.47 from $1.85 a year ago. 

The company estimated fourth quarter revenue to fall between $3.70 and $4.0 billion and diluted earnings per share between $1.07 and $1.29. 

Manhattan Associates dropped 5.6% to $276.0 after the supply chain software developer's revenue growth outlook fell short of market expectations. 

Revenue in the third quarter increased to $266.7 million from $238.4 million, net income advanced to $63.8 million from $49.4 million, and diluted earnings per share rose to $1.03 from 79 cents a year ago. 

The company estimated full-year 2024 revenue between $1.039 and $1.041 billion, an increase of 12% from a year ago. 

The company estimated diluted earnings per share to range between $3.47 and $3.49, an increase of about 23% from a year ago. 

McDonald's Corp. decreased 6.7% to $293.54 after the U.S. Centers for Disease Control and Prevention said an E. coli outbreak was linked to the company's Quarter Pounder burgers.

The CDC said that the outbreak has resulted in the death of one person and the hospitalization of 10 people. 

Starbucks Corp. fell 3.6% to $93.38 after the coffee chain operator suspended its 2025 outlook and reported a decline in sales in its fiscal fourth quarter. 

Coca-Cola Co. declined 2.5% to $67.70 after the beverage maker reported slightly higher-than-expected quarterly earnings. 

Adjusted revenue in the third quarter was flat at $1.95 billion, and unit case volume fell 1%, largely driven by the weakness in its international markets. 

Net income attributable to shareholders declined to $2.85 billion from $3.09 billion, and diluted earnings per share fell to 66 cents from 71 cents a year earlier.