Stocks edged lower in morning trading on Wall Street Wednesday, pulled down by losses in big technology and communications companies
Stocks edged lower in morning trading on Wall Street Wednesday, pulled down by losses in big technology and communications companies.
The S&P 500 fell 0.1% as of 10:15 a.m. Eastern. The Dow Jones Industrial Average fell 54 points, or 0.2%, to 36,265 and the Nasdaq fell 0.2%.
Losses from technology companies weighed on the market. Apple fell 1% and chipmaker Advanced Micro Devices shed 1.9%. Big communications companies also slipped. Google’s parent, Alphabet, fell 1%. Facebook parent Meta fell 0.9%.
Companies that rely on direct consumer spending gained ground. Wynn Resorts rose 2.4% after reporting encouraging third-quarter financial results.
Investors were given another disappointing update on rising inflation. The Labor Department reported that prices for U.S. consumers jumped 6.2% in October compared with a year earlier as surging costs for food, gas and housing left Americans grappling with the highest inflation rate since 1990. The jump in inflation was hotter than economists expected and follows a report on Tuesday that wholesale prices jumped 8.6% in October, matching a record annual gain.
Bond yields rose following the latest report on consumer prices. The yield on the 10-year Treasury rose to 1.49% from 1.43% late Tuesday.
Rising inflation has been a key concern for investors as they gauge the pace of the economic recovery and prepare for the Federal Reserve to begin trimming its bond purchases, which have helped maintain low interest rates.
Companies are facing higher prices on raw materials, along with supply chain problems that threaten to hurt earnings growth. Consumers are facing higher prices for a wide range of products, and that has raised concerns that a potential pullback in spending could stunt the recovery.
The latest round of corporate earnings allayed some of those fears as many companies managed to report solid results.
DoorDash soared 13.7% after reporting surprisingly strong third-quarter revenue and announcing that it is buying Finnish delivery service Wolt Enterprises, expanding its reach into Europe and other markets. Entertainment giant Walt Disney will report results after the closing bell.