US Stock Market: DJIA, S&P500 and Nasdaq mixed in early trade on Wednesday

US stocks hovered between gains and losses in morning
trading on Wall Street, leaving indexes mixed as another batch of companies
release their latest quarterly results. The S&P 500 fell 6 points or 0.16% to 3,713.98 as of
10.43 am Eastern time. The Dow Jones Industrial Average rose 56 points or 0.2%
to 30,582. The Nasdaq fell 21.01 points or 0.20% to 10,751.39.

Stocks of several companies including Netflix and United
Airlines jumped while others, including Abbott Laboratories and M&T Bank,
slipped.

The market is coming off two days of gains, but overall
trading remains volatile.

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Homebuilders and other construction companies fell after a
disappointing report on the housing industry. Construction of new homes fell
more than expected in September. Homebuilder Lennar plunged 4.4% and
home-improvement retailer Lowe’s fell 5.1%.

Treasury yields jumped to multi-year highs. The yield on
the 10-year Treasury, which helps determine mortgage rates, rose to 4.08% from
4.02% late Tuesday. The yield on the two-year Treasury, which often tracks
expectations for future Fed action, also rose to 4.52% from 4.43%.

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US crude oil prices
jumped 1.2% and energy stocks made gains. Exxon Mobil gained 2.2%. The US
government plans to announce another release of oil from the US strategic
reserve.

Investors have been closely watching the latest round of
corporate earnings reports for clues about how companies are dealing with the
hottest inflation in four decades and how they intend to operate through the
rest of the year and into 2023.

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Netflix surged 14.7% after the company said it gained 2.4
million subscribers during the July-September period. The streaming services
company recovered from a loss of 1.2 million customers during the first half of
the year.

United Airlines rallied 7.2% after reporting strong
third-quarter financial results. American Airlines will release its earnings
report on Thursday.

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Household goods major Procter & Gamble added 2.2% after
reporting strong financial results. The company also warned investors about a
strong US dollar cutting into revenue. A strengthening dollar decreases the
value of overseas sales after converting the currency. The US dollar is now
worth more than a euro for the first time in 20 years.

The US currency has gained strength against currencies
worldwide as inflation and recession concerns prompt investors to look for
relatively stable investments. Governments and central banks worldwide are
dealing with stubbornly hot inflation. United Kingdom food prices increased at
the fastest pace since 1980 last month, driving inflation back to a 40-year
high.

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The US faces its own potential recession and the Fed raises
interest rates to control inflation. The Fed’s rate hikes are meant to make
borrowing expensive and slow economic growth in an effort to curb inflation.
The strategy risks stalling the already slowing US economy and bringing on a
recession.