US stocks open sharply lower on inflation/low growth concerns

Meta-announcer earnings after the close yesterday and warned about higher expenses due to AI buildout investment. Caterpillar revenues missed as well. IBM is also getting hit in premarket trading after they announced their earnings. So some earnings misses. pressured stocks coming into the day.

The US GDP then added another layer of negativity after it showed lower growth and higher inflation (stagflation). The markets do not like that word. The core PCE data for the current month will be released tomorrow at 8:30 AM ET with expectations of 0.48% MoM now being touted by some analysts.

A snapshot of the market currently shows:

• Dow Industrial Average average -500 points or -1.31% at 37958
• S&P index -70.83 points or -1.40% at 5000.34
• NASDAQ index -350.0-2.25% at 15258

The small-cap Russell 2000 is also lower by -25 points or -1.27% at 1970.10

Looking at some individual stocks:

• IBM -8.6%
• Meta Platforms, -15.3%
• ServiceNow -5.6%
• Amazon -4.8%
• Caterpillar -7.43%
• Microsoft -4.30%
• Alphabet -4.11%

Microsoft, Alphabet, Intel, T-Mobile, Gilead all report after the close today.

Looking at the US yields, they are sharply higher with the 2-year yield trading above 5%:

• 2-year yield 5.018%, +8.1 basis points
• 5-year yield 4.745%, +8.7 basis points
• 10-year yield 4.733%, +7.7 basis points
• 30-year yield 4.838%, +5.5 basis points

Crude oil is trading down $0.20 at $82.61.

Bitcoin is moving lower on risk off (?) flows (I never know). The current price is trading at $63,262. The high-price today was at $64,708. The low price was $62,785.

This article was written by Greg Michalowski at www.forexlive.com.