Shares fell for the second trading day in a row on Thursday, even as better-than-expected corporate profits continued to pour in this week.
The Dow Jones Industrial Average fell 91.01 points, or 0.30%, to 30,332.80. The S&P 500 fell 29.58 points or 0.80% to 3,665.58 and the Nasdaq Composite fell 65.66 points or 0.61% to 10,614.84.
AT&T (T) and American Airlines (AAL) each beat analysts’ expectations when they released their results Thursday. Earlier in the week, Bank of America (BAC), Bank of New York Mellon (BK) and Goldman Sachs (GS) also each topped forecasts, along with defense contractor Lockheed Martin (LMT).
Nevertheless, inflation remains at a 40-year high and the Federal Reserve has indicated it will raise interest rates for the sixth time next month. US Treasury yields hit new recent highs, including the 10-year yield of 4.228% – the highest level since 2008.
Some of the stocks that fell were Tesla (TSLA), which closed at $207.28, down $14.76 or 6.65%. Microsoft’s stock price (MSFT) fell $0.33, or 0.14%, to close at $236.15.
“Our guess is that earnings will be good enough to keep the market within a trading range, but not enough to send it back to its midsummer highs and given the slowdown in monetary policy, we would argue that the time is not right side,” said Michael Shaoul of Marketfield Asset Management in a note to clients.