[ad_1]
Overall, the results season is starting well. According to FactSet, among the S & P 500 companies reporting to date, 88.5% have exceeded analysts' expectations.
Wednesday's moves come one day after the major indexes posted their best day since March, thanks to strong earnings. On Tuesday, the Dow Jones jumped more than 500 points when Goldman Sachs, Johnson & Johnson and UnitedHealth jumped. Tuesday's jump helped Wall Street recover some of last week's heavy losses. The Dow and the S & P 500 fell more than 4% last week, while the Nasdaq lost 3.7%.
On the data front, housing starts fell 5.3% last month, more than expected.
"The pace of single-family home construction has slowed over the past four months," said Peter Boockvar, chief investment officer of the Bleakley Advisory Group, in a note. "Price inflation and higher mortgage rates have deterred interested buyers."
The data, combined with a series of Credit Suisse downgrades and price reductions, led to a decline in housing inventories. Home Depot and Lowe's both fell by more than 4.5%, while KB Home and Lennar dropped 4.3% and 3.2%, respectively.
Housing stocks have been under pressure for a month. The US iShares Home Construction (ITB) ETF is down more than 10% for October as interest rates jumped.
The 10-year bond yield – which serves as a benchmark for mortgage rates – hit its highest level since 2011 last week. This rise has recently fueled fears that higher borrowing costs will slow down the economy.
At 2 pm, the Federal Open Market Committee will publish the minutes of its meeting at the end of September.
-CNBC & # 39; s
Spriha Srivastava
contributed to this report.
Source link
