Traders on the floor of the New York Stock Exchange, Aug. 4, 2022.
Source: NYSE
Stocks hovered near the flatline Thursday morning after the S&P 500 finished the regular session on the brink of the 5,000 milestone.
The Dow Jones Industrial Average added 55 points, or 0.1%. The S&P 500 and Nasdaq Composite were little changed.
Disney shares surged more than 9% after the media giant beat quarterly earnings estimates and raised its guidance amid its cost-cutting effort. Chipmaker and designer Arm jumped 32% after reporting stronger-than-expected earnings and providing an upbeat profit forecast.
Yields rose Thursday morning with the 10-year Treasury note last at 4.15%. The move in yields pressured stocks despite a raft of stronger-than-expected earnings reports that have lifted investor confidence that a robust economy can continue driving corporate profits and growth.
“We also see the potential for further gains in the event of a ‘Goldilocks’ economic outcome, in which US growth is stronger than expected and tame inflation allows the Federal Reserve to cut rates aggressively,” said UBS Global Wealth Management’s Solita Marcelli, calling the recent rally in stocks “well-supported.”
Stocks are coming off a winning session driven by earnings and a continued chug higher in megacap technology stocks. Meta Platforms gained another 3%, while Nvidia and Microsoft rose about 2% each to fresh record highs.
“The ‘Big 3’ forces that have been propelling the tape since Nov are still exerting upside pressure, including disinflation, the dovish monetary pivot, and resilient earnings,” Adam Crisafulli, founder of the Vital Knowledge, said in a note.
