Stocks Reverse Gains
October 05,2022 11:47 am EST
U.S. stocks fell on Wednesday, giving back some of its sharp gains from the last two sessions as Treasury yield rose.
The Dow Jones Industrials lost 270.95 points from Tuesday''s lofty perches to greet noon EDT at 30,045.37.
The S&P 500 docked 44.95 points, or 1.2%, to 3,745.98.
The NASDAQ Composite dropped 188.95 points, or 1.7%, to 10,987.46.
Lumen is down more than 10% after Wells Fargo downgraded the tech company''s rating to equal weight from overweight.
Analyst Eric Luebchow said its mass market segment, referred to as RemainCo, was struggling and warned downsides could put dividends at risk. He cut earnings before debt, interest, taxes and amortization forecasts for RemainCo to $5.9 billion, about $600 million below Wall Street estimates.
Private payrolls increased by 208,000, ADP said in its latest report, topping a Dow Jones estimate. Traders are still looking ahead to Friday''s release of the nonfarm payrolls report.
The U.S. trade deficit fell slightly more than expected in August to its lowest level in more than a year, the Bureau of Economic Analysis reported Wednesday.
The trade shortfall declined to $67.4 billion, a $3.1 billion drop from the previous month that was a bit better than the Dow Jones estimate of $67.7 billion. That marked the lowest level since May 2021. In March 2022, the deficit had hit a record $106.9 billion.
Treasury prices stumbled, raising yields to 3.78% from Tuesday''s 3.64%. Treasury prices and yields move in opposite direction.
Oil prices recovered $1.54 to $88.06 U.S. a barrel.
Gold prices faltered $13.40 to $1,717.10 U.S. an ounce.