Dow Wavers, Bed Bath and Beyond Slides—and What Else Is Happening in the Stock Market Today

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The Federal Reserve is expected to move aggressively to tighten monetary policy.

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The stock market was trying to rebound Wednesday, as first-quarter reporting season got under way with earnings from JPMorgan Chase and others.

Dow Jones Industrial Average futures were down 29 points, or 0.1%, reversing earlier gains, while S&P 500 futures were flat, and Nasdaq Composite futures gained 0.2%.

This might be a case of “if at first you don’t succeed, try try again.” On Tuesday, all three indexes spent much of the day in positive territory before selling off toward the end of the day, with the S&P 500 falling 1.6% from its peak to trough.

“Stock futures are attempting to stabilize this morning,” wrote Tom Essaye, founder of Sevens Report Research. 

The action comes even as the yield on the 10-year Treasury note rose 0.013 percentage point to 2.73%. Rising bond yields had been a problem for the market recently, but with the 10-year below the 2.78% it hit on Monday, the market might be hoping that its rapid rise, spurred by the Federal Reserve’s plans to raise interest rates and reduce the size of its balance sheet, is stalling.

The focus for the market is now shifting to earnings. JPMorgan (ticker: JPM) was the first bank to release its results and it reported a profit of $2.63 a share, missing estimates of $2.72 a share, on revenue of $31.6 billion, above expectations for $30.86 billion. The revenue number was down 5% year over year, and the earnings release said that home lending volumes fell as mortgage rates rose. Also, CEO Jamie Dimon said that the bank booked $902 million in credit reserves to protect against bad credits. The stock was down 3.3%.

More bank earnings are set to follow, with Citigroup (C), Morgan Stanley (MS), Goldman Sachs (GS), and Wells Fargo (WFC) due to report Thursday. And each result will be parsed for what they mean for the banks—and the broader economy.

“We could get a lot more info from the banks in terms of what’s happening in the economy,” says Shawn Cruz, director of derivative product strategy at TD Ameritrade. “It’s worth keeping an eye on those banks and what they say.”

Overseas, London’s FTSE 100 ticked up 0.1%, and the Hong Kong Hang Seng Index ended 0.3% higher.

Here are five stocks on the move Wednesday:

Sierra Oncology (SRRA) jumped 38% in premarket trading after pharmaceutical giant GlaxoSmithKline (GSK) agreed to buy the rare cancer therapy company for $1.9 billion in cash. Glaxo stock ticked up 0.5%.

Delta Air Lines (DAL) stock gained 5.9% after the company reported a loss of $1.23 a share, narrower than the estimates of $1.27 a share, on sales of $9.3 billion, above expectations for $8.8 billion. 

Bed Bath & Beyond (BBBY) stock dropped 10.4% after reporting a loss of 92 cents a share, missing estimates for a profit of 3 cents a share, on sales of $2.05 billion, below expectations for $2.08 billion. 

Humana (HUM) stock gained 1.3% after getting upgraded to Buy from Neutral at UBS. 

Write to Jacob Sonenshine at jacob.sonenshine@barrons.com and Jack Denton at jack.denton@dowjones.com