Stock Rally Shows Signs of Fatigue as Nvidia Sinks: Markets Wrap

(Bloomberg) — Stocks struggled to gain traction after a rally that drove the market to all-time highs as chipmakers fell and a slide in oil dragged down energy producers.

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The S&P 500 was little changed, hovering near technically overbought levels. Nvidia Corp. lost 1.6% on a news report that Biden administration officials have discussed capping sales of advanced AI chips from the company and other American firms on a country-specific basis. Bank of America Corp. climbed 2% as earnings topped estimates. Goldman Sachs Group Inc. and Citigroup Inc., which also reported solid results, came under pressure.

The S&P 500 was little changed. The yield on 10-year Treasuries declined five basis points to 4.06%. Oil plummeted after a report that Israel may avoid targeting Iran’s crude infrastructure eased concerns over a major supply disruption.

Corporate Highlights:

• Charles Schwab Corp. reported earnings per share that topped analyst estimates and said it cut some of its expensive debt.

• PNC Financial Services Group Inc. pulled in more net interest income than analysts expected in the third quarter, another period of sequential growth for the bank’s biggest source of revenue as the firm continues to predict a record haul next year.

• Boeing Co. prepared to raise much as $25 billion in debt and equity, giving the troubled planemaker the financial resources to withstand a paralyzing strike and work its way through a series of operational setbacks.

• Johnson & Johnson reported stronger-than-expected third-quarter earnings, driven by surging sales of cancer medicine Darzalex.

• Walgreens Boots Alliance Inc. plans to close 14% of its US store fleet as part of ongoing strategy to cut costs as consumers pull back spending.

• UnitedHealth Group Inc. lowered the top end of its forecast, a rare move for the insurance giant that has often withstood pressures that hurt its competitors.

• After a volatile summer, ASML Holding NV investors are hoping that its earnings report will underline the chip equipment maker’s strong credentials as an artificial intelligence trade with further to run.

Key events this week:

• Morgan Stanley earnings, Wednesday

• ECB rate decision, Thursday

• US retail sales, jobless claims, industrial production, Thursday

• Fed’s Austan Goolsbee speaks, Thursday

• China GDP, Friday

• US housing starts, Friday

• Fed’s Christopher Waller, Neel Kashkari speak, Friday

Some of the main moves in markets:

Stocks

• The S&P 500 was little changed as of 10:01 a.m. New York time

• The Nasdaq 100 was little changed

• The Dow Jones Industrial Average fell 0.7%

• The Stoxx Europe 600 fell 0.1%

• The MSCI World Index was little changed

Currencies

• The Bloomberg Dollar Spot Index was little changed

• The euro was little changed at $1.0910

• The British pound rose 0.2% to $1.3091

• The Japanese yen rose 0.4% to 149.21 per dollar

Cryptocurrencies

• Bitcoin rose 2.9% to $67,801.91

• Ether rose 2.3% to $2,681.78

Bonds

• The yield on 10-year Treasuries declined five basis points to 4.06%

• Germany’s 10-year yield declined four basis points to 2.23%

• Britain’s 10-year yield declined five basis points to 4.19%

Commodities

This story was produced with the assistance of Bloomberg Automation.

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