WASHINGTON (dpa-AFX) - Stocks showed a strong move to the upside in early trading on Wednesday but gave back ground over the course of the session. The major averages pulled back well off their highs of the session in afternoon trading, with the Dow sliding into negative territory.
The major averages eventually ended the session mixed. While the Nasdaq rose 55.98 points or 0.4 percent to 15,481.92 and the S&P 500 inched up 3.95 points or 0.1 percent to 4,868.55, the Dow fell 99.06 points or 0.3 percent to 37,806.39.
Despite the afternoon pullback, the S&P 500 crept up to a new record closing high and the Nasdaq reached its best closing level in over two years.
Technology stocks helped lead the way higher in early trading on Wall Street, with shares of Netflix (NFLX) soaring by 10.7 percent on the day.
Netflix rallied after the streaming giant reported better than expected fourth quarter revenues on stronger than expected subscriber growth.
Dutch chip equipment maker ASML (ASML) also spiked by 8.9 percent after reporting better than expected fourth quarter results.
The strong results added to optimism about earnings from other tech companies, with IBM Corp. (IBM) among the companies releasing their quarter results after the close of today's trading.
Buying interest waned over the course of the session, however, potentially reflecting renewed interest rate concerns amid a rebound by treasury yields.
Yields moved lower early in the session but showed a significant turnaround as the day progressed following some upbeat U.S. economic data and a disappointing five-year note auction.
Sector News
Despite the pullback by the broader markets, oil service stocks continue to see substantial strength resulting in a 3.1 percent spike by the Philadelphia Oil Service Index.
The rally by oil service stocks came as the price of crude oil for March delivery climbing $0.72 to $75.09 a barrel following the release of a report showing a much bigger than expected weekly decrease in crude oil inventories.
Significant strength also remained visible among semiconductor stocks, as reflected by the 1.5 percent gain posted by the Philadelphia Semiconductor Index. The index reached a new record closing high.
While ASML led the sector higher, Advanced Micro Devices (AMD) also posted a standout gain after New Street Research upgraded its rating on the chip maker's stock to Buy from Neutral.
Meanwhile, gold stocks moved sharply lower amid a decrease by the price of the precious metal, dragging the NYSE Arca Gold Bugs Index down by 3.0 percent.
Telecom stocks also came under pressure over the course of the session, with the NYSE Arca North American Telecom Index slumping by 2.1 percent.
Industry giant AT&T (T) tumbled by 3.0 after reporting weaker than expected first quarter earnings and forecasting 2024 earnings below analyst estimates.
Interest rate-sensitive utilities, housing and commercial real estate stocks also moved to the downside amid the rebound by treasury yields.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan's Nikkei 225 Index slid by 0.8 percent, while Hong Kong's Hang Seng Index surged by 3.6 percent.
Meanwhile, the major European markets all moved to the upside on the day. While the German DAX Index jumped by 1.6 percent, the French CAC 40 Index advanced by 0.9 percent and the U.K.'s FTSE 100 Index climbed by 0.6 percent.
In the bond market, treasuries came under pressure over the course of the session after seeing initial strength. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, rose 3.6 basis points to 4.178 percent after hitting a low of 4.086 percent.
Looking Ahead
While earnings news may continue to impact trading on Thursday, traders are also likely to keep an eye on a slew of U.S. economic data, including reports on weekly jobless claims, durable goods orders and fourth quarter GDP.
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