Stocks End Lower, Treasury Yields And Earnings In Focus

Market Moves You Need to See Stocks End Lower, Treasury Yields And Earnings In Focus [Kevin Matras - EVP - Photo] Profit from the Pros By Kevin Matras Executive Vice President Stocks End Lower, Treasury Yields And Earnings In Focus [Stocks End Lower, Treasury Yields And Earnings In Focus]Image: Shutterstock Stocks closed sharply lower yesterday with all of the major indexes in the red. Conversely, Treasury yields rose with the 10-year yield hitting their highest levels in 16 years. Before the open Procter & Gamble, Abbot Labs, and Morgan Stanley posted positive EPS surprises to the tune of 7.02%, 3.64%, and 8.66%. Stocks opened down modestly, but ended up grinding lower throughout the day. MBA Mortgage Applications fell -6.9% w/w, with purchases down -5.6%, and refi's down -9.9%. The Housing Starts and Permits report showed Starts coming in higher at 1.358 million units (annualized) vs. last month's 1.269M, but under the consensus for 1.394M. Permits fell to 1.473M units vs. last month's 1.541M, but came in above estimates for 1.450M. And the Beige Book report showed little change vs. last month. The report also noted that the near-term outlook for the economy was "stable or having slightly weaker growth." After the close yesterday Netflix reported earnings and posted a positive EPS surprise of 7.80%, and a positive sales surprise of 0.11%. That equates to a 20.3% EPS growth rate vs. this time last year, and a 7.69% sales growth rate. NFLX was down -2.68% in the regular session before earnings, but soared more than 12% in after-hours trade. Tesla also reported after the close. And they posted a negative EPS of -8.33%, and a negative sales surprise of -4.23%. That was a -37.1% EPS decline vs. this time last year, but an 8.85% increase in sales. Lower margins hurt the bottom line, but sale were up. The company also noted that Cybertruck deliveries are still expected to begin in November. The stock was down -4.78% in the regular session before earnings, but was up more than 1.30% in after-hours trade. Today on the earnings front we'll hear from Taiwan Semiconductor, Philip Morris, Union Pacific, AT&T, and Intuitive Surgical to name a handful. On the economic report docket we'll get Weekly Jobless Claims, the Philadelphia Fed Manufacturing Index, Existing Home Sales, and Leading Indicators. We'll also hear from Fed Chair, Jerome Powell, as he speaks at the Economic Club of New York on the economic outlook. No new ground is expected to be broken during today's speech. But you can be sure people will be listening to every word he says. There is no doubt that there's a general sense of unease given the rising tensions around the world with the escalating war between Israel and Hamas. That comes on top of the ongoing war between Russia and Ukraine. Worries persist. But from the markets standpoint, aside from concerns over energy prices and possible supply chain disruptions, it has not had any impact on business earnings or the larger economy. And that's why stocks have largely been unaffected. Although, things can always change. With 2 days left to go, stocks are down for the week, but not by much. If the focus remains on earnings, that should bode well for stocks. Earnings season is off to a great start. And since stocks typically go up during earnings season, that makes for a powerful combination. See you tomorrow, [Kevin Matras - Signature] Kevin Matras Executive Vice President, Zacks Investment Research [Best Tech Market in Decades]( Will you be left behind? Zacks Technology Innovators portfolio has recently closed a flurry of winners such as +45.3% in 6 days, +46.1% in 17 days, +118.8% in 23 weeks, and +1007.1% in 6 months. But, in our view, the best is yet to come. Artificial Intelligence (AI) is just starting to skyrocket toward multi-trillions in revenue, igniting many tech stocks along the way. In fact, we're getting ready to add an AI stock to our portfolio that could have much more upside than even NVIDIA moving forward. You can be in the first wave of Zacks members to take advantage of it. [See Zacks Tech Stocks Now »]( Most Popular Articles from Zacks.com [5 Biotech Stocks Set to Outpace Q3 Earnings Estimates]( We have highlighted five biotech companies with a positive Zacks Earnings ESP that are expected to surprise on earnings. [Read More »]( [3 Pollution Control Stocks to Keep an Eye on Amid Industry Woes]( With rising greenhouse gas emissions and growing awareness regarding the health risks of environmental pollution, strong demand for pollution abatement products bodes well for the industry. [Read More »]( [Momentum Alert: 3 Stocks Breaking Out Despite Geopolitical Uncertainty]( Surprisingly, markets often move past geopolitical escalations quicker than most would expect. [Read More »]( [4 Promising Stocks to Add as September Retail Sales Rise]( September marked the sixth consecutive month of gains in retail sales. [Read More »]( [5 Value Stocks With High Earnings Yield to Boost Your Portfolio]( Earnings yield is a valuable indicator that helps investors determine whether a stock is a hidden gem or a potential financial sinkhole. [Read More »]( [Increase Investment Returns with Free Zacks' Portfolio Tracker]( Catch breaking news on your stocks and funds at a glance, including timely recommendation changes ... Zacks Ranks ... Industry Ranks ... earnings announcements ... earnings estimate revisions ... and more. And now you can screen for new stocks to improve portfolio performance. [Click for Free Tracker & Screener »]( [Bull of the Day: Uber Technologies (UBER)]( Uber's earnings are forecasted to see 110% growth on 18% higher revenues in its current year. [Read More »]( [New Zacks Strong Buys for October 19th]( Here are 5 stocks added to the Zacks Rank #1 (Strong Buy) List today. [Read More »]( More Zacks Resources Mobile App Download our app for convenient on-the-go access to even more—daily and weekly newsletters published by Zacks experts, proprietary research and tools, and Portfolio Tracker on Zacks.com. [Download our Zacks App for Apple iOS]( [Download our Zacks App for Android]( Zacks Members' Success Stories Visit [Success Stories]( to hear how Zacks research, tools and portfolios help our members outperform the market. Get all of our market insights and much more when you connect with us. [Visit Zacks on Facebook]( [Follow Zacks on Twitter]( [See Zacks videos on YouTube]( [Join Zacks on LinkedIn]( [Read Zacks Commentary on StockTwits]( This free resource is being sent by [Zacks.com](. We look for investment resources and inform you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms of Service". [www.zacks.com/terms_of_service]( Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research is not a licensed securities dealer, broker or US investment adviser or investment bank. The Zacks #1 Rank Performance covers the period beginning on January 1, 1988 through September 4, 2023. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank #1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit [( for information about the performance numbers displayed above. Zacks Emails If you would prefer to not receive future profit-producing emails from [Zacks.com]( the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please [click here]( and confirm your request. If you have trouble with the unsubscribe link, please email support@zacks.com. Zacks Investment Research 10 S. Riverside Plaza, Suite 1600 Chicago, IL 60606