Stocks initially benefited from another batch of upbeat earnings news from big-name companies like IBM Corp and AT&T. But the market failed to hold early momentum as continued ascent of the benchmark Treasury yields on Thursday weighed generally upbeat earnings against the prospect that the Federal Reserve could hold firm on its aggressive policy for longer than they had hoped.
Also, weighing the market sentiment was remarks from Philadelphia Federal Reserve President Patrick Harker suggested the central bank will "keep raising rates for a while." Harker's comments also helped support the 10-year Treasury yield's climb past 14-year highs.
At the close of trade, the Dow Jones Industrial Average index fell 90.22 points, or 0.3%, to 30,333.59. The S&P500 index declined 29.38 points, or 0.8%, to 3,665.78. The tech-heavy Nasdaq Composite Index decreased 65.66 points, or 0.61%, to 10,614.84.
Total 8 of 11 S&P500 sectors declined, with utilities (down 2.5%), industrials, (down 1.9%), consumer discretionary (down 1.7%), financials (down 1.6%), and consumer staples (down 1.4%) being notable losers.
IBM Corp share advanced after it reported better than expected third quarter results and raised its full-year revenue guidance as robust demand for the company's digital services helps cushion the blow from a strong dollar. The IT software and services provider has been focusing on the so-called "hybrid cloud" after spinning off its legacy IT-managed infrastructure business, and posted double-digit growth across all its segments and geographies on a constant-currency basis in the third quarter.
Shares in AT&T climbed up as the company lifted its annual profit forecast after posting upbeat third-quarter results on Thursday, thanks to Americans opting for pricier wireless plans and a rebound in international travel. The wireless carrier is now betting on the demand for broadband, international roaming, and monthly bill-paying subscribers to help pay off the nearly $134 billion debt on its balance sheet.
Tesla shares were under pressure after the company posted record third-quarter revenue but cut its vehicle delivery target.
ECONOMIC NEWS: Jobless claims for the week ending Oct. 15 declined by 12,000 to 214,000 from 226,000 the week before, the Labor Department reported on Thursday.
The Philadelphia Fed said on Thursday that its gauge of regional business activity inched up to negative 8.7 in October from negative 9.9 in the prior month. Any reading below zero indicates deteriorating conditions. The barometer on new orders ticked up 2 points to negative 15.9. The shipments index was essentially unchanged at 8.6, its lowest reading since May 2020. The measure on six-month business outlook fell sharply to negative 14.9 from negative 3.9.
Among Indian ADR, Dr Reddy's Labs added 0.5% to $51.93, HDFC Bank dropped 1.3% to $58.94, Tata Motors dropped 0.8% to $23.58, ICICI Bank declined 1.2% to $21.32, Azure Power Global dropped 8.4% to $4.67, and WNS Holdings shed 2.4% to $81.11. Wipro added 0.9% to $4.56 and INFOSYS was up 0.3% at $17.89.
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