All three major U.S. equity indices slipped into negative territory during early afternoon trading on Thursday, giving gains posted earlier in the day. The midday selling took place as Treasury yields rose.
The initial upswing followed strong earnings from Tesla, which gave an early lift to tech and the broader market. However, stocks retraced these gains through the morning as focus shifted from earnings to concerns about the Federal Reserve.
Netflix, which lost more than a third of its value yesterday, is showing another modest decline in Thursday’s trading. Bill Ackman said late yesterday he sold out of his large position, taking a loss of about $400M.
On the macro front, investors will be watching what Fed Chairman Jerome Powell has to say, especially with regard to a possible peak in inflation.
In economic news, the Philly Fed index fell more than expected in April to 17.6 with the prices paid component coming in at 84.6, the highest level since June 1979.
The 10-year Treasury yield is up 10 basis points to 2.94% and the 2-year is up 12 basis points to 2.70%.
Powell will give brief introductory remarks at an inflation discussion at The Volcker Institute at 11 a.m. ET, but the main event is his appearance on a panel for a debate on the global economy at the IMF at 1 p.m. ET.
Also in economic data, initial jobless claims ticked down slightly to 184K.
See the stocks making the biggest individual moves this morning.