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Stocks fall ahead of more heavyweight earnings: Stock market news today | April 24, 2023

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U.S. stocks were mixed Monday as the earnings calendar is locked and loaded with heavyweights reporting in every sector.

The S&P 500 (^GSPC) edged up above the flatline at the open, while the Dow Jones Industrial Average (^DJI) added 0.21%. The technology-heavy Nasdaq Composite (^IXIC) ticked down by 0.18%

Government bonds fell. The yield on the 10-year note slid to 3.53%, while rate-sensitive two-year note yields also declined to 4.16% Monday morning.

This week will bring a flood of earnings including several big tech companies — Microsoft (MSFT), Meta (META), Amazon (AMZN), and Alphabet (GOOGL) — whose shares have pushed the S&P to rally so far this year.

Wall Street has been worried about a so-called earnings recession, with investors expecting a second-straight quarter of decline in profits from US companies. That has some strategists questioning if this year's market rally will run out of steam.

So far, earnings season is off to a solid start, as about 68% have reported a beat on EPS so far, down from a record 90% last week, according to a note from Bank of America.

Big bank earnings are in the rear view. But some regional lenders are still on tap, including First Republic Bank (FRC) reporting after the bell on Monday.

Meanwhile, Credit Suisse Group AG (CS) reported Monday its last-ever quarterly results. Even after UBS (UBS) agreed to buy out the ailing bank in March, Credit Suisse depositors withdrew nearly $75 billion.

Still, Wall Street remains concerned that the US economy will spiral into a recession as the Federal Reserve raises interest rates to cool inflation. Investors will be closely watching the first reading of Q1 GDP, out Thursday. Economists expect a 2.2% print, compared to a 2.6% in the last quarter of 2022.

“It’s getting harder to find an economic indicator that’s saying the economy isn’t already in a recession right now let alone on the verge of one,” the team at Bespoke Investment Group wrote in a note on April 21.

Other economic releases this week include consumer confidence, new home sales, durable goods orders, and the closely watched employment cost index. These will be the last big inflationary data points ahead of the Federal Open Market Committee's meeting next week.

Separately, after the volatility in energy markets this year, Wall Street's attention will turn to some of the largest players by the end of next week in oil, including Exxon (XOM), Chevron (CVX), Valero (VLO), and TotalEnergies SE (TTE).

Following four consecutive weeks of gains, crude oil retreated as data last week showed growing headwinds for the US economy. WTI Crude fell 5.63% for the week, while Brent crude broke a winning streak streak to finish down 5.39% on the week.

In single-stock moves, Bed Bath & Beyond Inc. (BBBY) filed for bankruptcy. The home goods seller and erstwhile meme-stock darling couldn’t raise enough money to stay afloat.

Shares of the Coca-Cola Company (KO) rose after the beverage company reported first quarter global sales increased 5% in the first three months of the year to $10.98 billion, beating analyst expectations for $10.8 billion.

Fox Corporation (FOXA) sank nearly 5% after the network said on Monday that its star primetime host Tucker Carlson "have agreed to part ways."

Overall, the narrative that we're going into recession is "very seductive," Baird Managing Director and Market Strategist Michael Antonelli told Yahoo Finance Live. But he noted that "companies are still performing pretty well."

Koninklijke Philips N.V. (PHIA.AS) shares surged after the Dutch health technology company Royal Philips announced it has set aside funds to cover possible litigation costs in the US related to the recall of 5.5 million faulty medical devices.

Shares of Sociedad Química y Minera de Chile S.A. (SQM) jumped following the Chilean’s President Gabriel Boric announcement on Friday of a new state-led strategy to develop its vast resources of lithium, which is vital for the development of electric vehicles.

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