New York, Oct. 20 (BNA): Stocks rose in morning trading on Wall Street on Thursday as markets continued an uneasy search for direction amid more mixed news on corporate earnings. The S&P 500 was up 0.8% as of 10:13 AM ET. The Dow Jones Industrial Average rose 339 points, or 0.1%, to 30,757 and the Nasdaq rose 1%, according to the Associated Press.
Treasury yields soared to multi-year highs, helping drive up interest rates on mortgages and other loans. The yield on the 10-year Treasury rose to 4.15 from 4.14% late Wednesday and is at a 14-year high. The two-year Treasury yield, which tends to track expectations for the Federal Reserve’s future action, rose to 4.57% from 4.56%.
Earnings have been the big focus on Wall Street all week as investors try to get a better picture of how companies are performing amid the highest inflation rates in four decades and how they see the economy moving forward. Results have been mixed so far and many major companies have disappointed investors with weak or worrisome warnings.
Tesla fell 5.1% after saying it will miss its target for auto deliveries this year. Railroad Union Pacific fell 3.6% after forecasting slower growth, indicating that the economy may be slowing. CSX stock, which announced its results later Thursday, was down 0.5%. American Airlines shares fell 2% after the announcement of its latest results.
Technology stocks made solid gains. Microsoft shares rose 1.6 percent. Energy stocks rose as US oil prices rose 2.7%. Chevron shares rose 1.7 percent. Markets in Europe were mostly higher. British Prime Minister Liz Trace resigned following the financial market turmoil caused by multiple shifts in policy.
Investors remain concerned about inflation and the possibility of a worldwide recession. Wall Street is particularly concerned about the Federal Reserve’s ongoing plan to raise interest rates in order to slow economic growth and tame high prices. The US economy is already showing signs of slowing and the Fed’s plan risks freezing the economy and causing a recession.
The labor market has remained a strong area in the economy, along with consumer spending. The latest government data showed that the number of Americans filing for unemployment benefits fell last week and remains a historic low.
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