(Bloomberg) — Shares of technology stalwarts rose while the broader U.S. equity market was mixed amid a slew of earnings reports, a decline in commodity prices and renewed concerns about economic growth. Bonds gained.
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Google parent Alphabet, Amazon.com and Tesla pushed the tech-heavy Nasdaq 100 higher for a third day. The S&P 500 and Dow Jones Industrial Average fluctuated between gains and losses after setting closing record highs Tuesday. McDonald’s Corp., Coca-Cola Co. and Kraft Heinz Co. climbed after positive results. Microsoft Corp. also advanced after upbeat reports late Tuesday. Robinhood slumped after missing revenue estimates. Visa Inc. and General Motors Co. declined.
Mining and energy stocks led a retreat in the Stoxx Europe 600 index as prices of raw materials including aluminum and iron ore fell along with crude oil. Germany’s DAX underperformed after Europe’s biggest economy cut its 2021 growth forecast, citing the lingering effects of the pandemic and a supply squeeze. Bund yields dropped along with those on other European bonds.
Some of Wednesday’s major earnings from Europe:
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Deutsche Bank AG dropped more than 6% after disappointing earnings, while Banco Santander SA declined despite a bullish outlook.
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Heineken NV fell after reporting a drop in demand for beer.
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BASF SE slipped after flagging dwindling returns on its core suite of chemical products as sputtering global supply catches up with demand.
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GlaxoSmithKline Plc rose on an improved profit outlook.
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Dutch semiconductor equipment maker ASM International NV advanced after revenue forecasts beat analyst estimates.
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Puma SE gained after raising full-year profit forecasts.
Equities fell in Japan, and Chinese technology shares slid on concerns about more scrutiny from Washington after the U.S. banned China Telecom’s American business. Treasury yields inched lower and the dollar slipped.
Investors are counting on earnings to support equity prices, and so far the reporting season has been solid overall. But worries remain that over time rising raw material and wage costs and supply-chain snarls could crimp margins and weigh on the global economy recovery.
“While some prominent earnings misses have clouded the picture, the reality is that on aggregate, the reporting season so far has been very solid,” said Max Kettner, a multi-assets strategist at HCBC Holdings Plc. “Everyone, literally everyone, in the market right now is worried about supply-chain constraints, higher input costs and the like, so headwinds from this side are now very well reflected in near-term earnings expectations.”
The debt crisis in China’s property sector continues to hang over the market: authorities told billionaire Hui Ka Yan to use his personal wealth to alleviate China Evergrande Group’s woes. Meanwhile, a top Chinese regulator called on companies to make “active preparations” to meet payments on offshore bonds.
Elsewhere, gilt yields fell after…
Read More: Tech Shares Rise Amid Mixed Earnings; Yields Drop: Markets Wrap