After 2 Days of Gains, Wall St. Changes Course

Dow sheds 100 points
By Newser Editors and Wire Services
Posted Oct 19, 2022 3:50 PM CDT
After 2 Days of Gains, Wall St. Changes Course
A street light brightens a Wall Street sign outside the New York Stock Exchange.   (AP Photo/Bebeto Matthews)

Stocks closed lower on Wall Street Wednesday, reversing course after two days of gains. Major indexes are still higher for the week despite the declines, which pulled every sector lower except energy. Treasury yields continue to climb to multiyear highs, tempting investors with higher returns on relatively low-risk investments. Several companies fell after reporting disappointing results, including backup generator maker Generac and M&T Bank. The S&P 500 fell 24.82 points, or 0.7%, to 3,695.16. The Dow Jones Industrial Average fell 99.99 points, or 0.3%, to 30,423.81. The Nasdaq fell 91.89 points, or 0.9%, to 10,680.51.

Several companies, including Netflix and United Airlines, rose sharply after releasing their quarterly reports while other sank. Netflix, which said Tuesday that it had reversed subscriber loss, jumped 13.1% and United was up 5%. Homebuilders and other housing industry-related companies fell following a report showing that construction on new homes declined more than expected in September. Homebuilder Lennar fell 6% and home-improvement retailer Lowe's slid 4.8%. US crude oil prices rose 3.8%, giving a boost to energy stocks. Exxon Mobil rose 3%. The White House plans to announce another release of oil from the US strategic reserve.

Household goods giant Procter & Gamble rose 0.9% after also reporting strong financial results. It joined a growing list of companies, including Hasbro and Johnson & Johnson, warning investors about a strong US dollar cutting into revenue. A strong dollar decreases the value of overseas sales after converting the currency. The US currency is now worth more than a euro for the first time in 20 years. The dollar has gained strength versus currencies worldwide as inflation and recession concerns prompt investors to look for relatively stable investments. (Read more stock market stories.)

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