The Dow Jones Industrial Average fell Wednesday, building on the steep losses from the previous session, as an uptick in Treasury yields and oil prices dented investor sentiment.
The 30-stock index fell 68.61 points, or 0.20%, landing at 33,550.27. Earlier in the session, it was up as much as 112.77 points. The S&P 500 edged up 0.02% to close at 4,274.51, while the Nasdaq Composite added 0.22% to end the session at 13,092.85.
The benchmark 10-year Treasury yield hit its highest levels since 2007. The 2-year Treasury yield also climbed. Meanwhile, U.S. crude futures popped more than 3% to settle at $93.68 per barrel.
Energy was the best-performing sector, rising 2.5%. Notable gainers include Marathon Oil and Devon Energy, both up more than 4%.
Those moves come after the S&P 500 on Tuesday fell below the key 4,300 level for the first time since June. The Dow also posted its biggest one-day loss since March, dropping more than 300 points to close below its 200-day moving average for the first time since May.
Stocks have come under pressure recently from rising rates and disappointing economic data.
"Inflation remains the big concern," said Greg Bassuk, CEO of AXS Investments. "Investors have been very anxious about not only the elevated rate, but how that impacts companies with the higher borrowing costs."
September is a seasonally weak month for stocks. Indeed, the S&P 500 is down by 5% month to date, while the Dow is down more than 3%. The Nasdaq is the laggard of the three, losing more than 6% this month.
Bassuk expects volatility could continue in the coming weeks. However, he expects some strong buying opportunities later in October leading up to year end.
The Dow Jones Industrial Average closed lower on Wednesday afternoon after a volatile trading session.
The 30-stock index shed 68.61 points, or 0.20%, to land at 33,550.27. On the other hand, the S&P 500 inched up by 0.02% and settled at 4,274.51. Meanwhile, the Nasdaq Composite added 0.22% to end at 13,092.85.
— Lisa Kailai Han, Sarah Min
More than 40% of adults in the U.S. are obese. That makes the group a force to be reckoned with if their habits change suddenly. That's why we've seen so many Wall Street analysts exploring the fallout from new weight loss medications like Wegovy and Ozempic on industries from real estate to medical devices to food and beverage. Many of these exercises have been theoretical and have come with warnings that it might take a while for the trends to play out.
Walmart's CFO John David Rainey met with Bank of America on Tuesday and touched on how GLP-1 medicines are changing people's purchasing habits. Read more about what he said on CNBC Pro.
The retailer's comments come as more than 9 million prescriptions have been written for these drugs, which also treat type 2 diabetes, according to Trilliant Health.
Walmart shares are down less than 1% in trading on Wednesday.
—Christina Cheddar Berk
September has so far lived up to its reputation as a historically weak month for stocks. However, AXS Investments' Greg Bassuk expects the market is paving the way forward for "select buying opportunities" from October into the year end.
The CEO of AXS Investments said this month's pullback has created good entry points for investors to buy stocks. He recommends focusing on alternative investments in commodities as he expects continued turbulence in the markets.
"Companies with strong fundamentals that were overly beaten down represent good opportunities going forward," he added.
— Lisa Kailai Han
Dell's durable competitive advantages, cheap valuation, artificial intelligence backlog and potential for revenue growth will push its stock price up, according to Alliance Bernstein.
Shares of the computer manufacturer have rallied over 70% year to date. Despite this, analyst Toni Sacconaghi believes that the company still has rooms to rise, raising his price target to $80 from $70 in a Tuesday note. That implies a 16% upside from the stock's closing price of $68.93 on Tuesday afternoon.
"On the positive side, we believe that Dell is a best-in-class operator and should grow faster (mid to high single digit EPS and FCF) than its peers, warranting a better multiple," Sacconaghi wrote. "We also acknowledge potential catalysts in index inclusion and incremental capital return."
— Lisa Kailai Han
A government shutdown would create significant uncertainty for the defense companies that rely on federal dollars, but that doesn't mean investors have to bail on the stocks, according to Morgan Stanley analyst Kristine Liwag.
"The potential impact of a shutdown, in our view, hinges heavily on duration. While a short-term shutdown may cause minimal disruption to Defense Primes, the longer a shutdown persists, the more risk builds," Liwag said in a note to clients on Tuesday night.
If the shutdown is resolved quickly, defense stocks could outperform tine broader market in the weeks following the resolution, as happened in 2013.
"Shutdown-induced weakness could present a tactical buying opportunity, in our view," Liwag said.
— Jesse Pound
UBS analyst Peter Grom initiated coverage of e.l.f. Beauty on Wednesday with a buy rating and price target of $138.
"We believe ELF can drive +47%/+20% org. growth in FY24 and FY25 driven by innovation-led share gains across the mass beauty industry," Grom wrote in a note. "We believe this greater flow through will allow ELF to maintain it's current premium valuation, thereby rewarding shareholders with stronger earnings growth."
Grom pointed to the company's faster-growing skin care category, which now accounts for roughly 18% of its sales, and an "underappreciated runway" of international growth as fuel for e.l.f. Beauty's top-line potential.
Shares are trading 0.8% higher on Wednesday. The stock has popped more than 99% this year.
— Pia Singh
Shares of Meta fell 3.6% in Wednesday trading. Earlier in the afternoon, the company announced the release of its newest Quest 3 VR headset.
While more expensive than Meta's previous iteration of the product, the headset includes newer features such as better screens, a more powerful chip and an emphasis on passthrough. The passthrough function emphasizes device immersion by allowing users to blend their digital display with their outside real-world surroundings.
Meta stock is up over 139% since the start of the year.
— Lisa Kailai Han
Levi Strauss & Co. advanced more than 0.7% after a bullish call on the clothing maker from TD Cowen.
Analyst Oliver Chen initiated coverage of the stock with an outperform rating on Wednesday. He cited its strong brand and trends that should work in the company's favor, as well as noting the company can grow its direct-to-consumer business and international presence.
"We believe Levi's is in the early innings of a favorable denim cycle of new fits and styles driven by younger, fashion-forward consumers," he said in a note to clients. "Its 'icon' status as a heritage brand is evident."
Chen's target price for shares indicates that he believes the stock could rally about 23.8% from where it finished Tuesday.
— Alex Harring
Three energy companies comprise the S&P 500's top four gainers week to date.
Medical devices company Resmed has risen the most since the start of the week, up 7.5% as of Wednesday afternoon.
Energy stocks were the next biggest winners as oil prices continue to rise. APA Corp has rallied 5.5% for the week, followed by EOG Resources and Pioneer Natural, which are both higher by more than 5%.
— Hakyung Kim
The Dow took the biggest leg down in Wednesday's session of the three major indexes, weighed on by slides in Johnson & Johnson and Walgreens.
Both stocks fell about 2% in the session. Verizon, Merck and McDonald's were also among the worst performers, down more than 1.5%.
The index as a whole fell about 0.5%. Chevron, Intel and Caterpillar were among those in the 30-stock index bucking the trend, with all three up more than 1%.
— Alex Harring
Utilities was the biggest laggard in the S&P 500, with the sector down by 1.4% during midday trading.
NextEra Energy was the worst-performing stock in the sector, dropping by more than 6%. American Water Works Company was lower by more than 1%.
— Sarah Min
The S&P 500 could soon test the 4,200 level as elevated yields, rising oil prices and a stronger dollar continue to weigh on equities, according to BTIG.
"Of the three, we think bonds are the closest to a reversal, but things are likely to remain messy into quarter-end," BTIG's Jonathan Krinsky said in a Wednesday note. "All of this continues to suggest SPX tests ~4200."
The broader index was last trading above the 4,250 level.
— Sarah Min
These are the stocks making the biggest moves during midday trading:
Here's the full list of stocks moving midday.
— Samantha Subin
Bank of America named Occidental Petroleum a top idea, seeing shares of the Houston-based energy producer rising 30%.
"Of our oil weighted coverage we see OXY best positioned to capitalize on near term oil strength while capital efficiency, a deep drilling backlog and the Berkshire 'put' can help mitigate downside risk," the Wall Street firm said in a note.
Warren Buffett's Berkshire Hathaway kept buying the dip in Occidental this year, now owning a quarter of the oil giant.
— Yun Li
Electric-vehicle charging stations provider ChargePoint could make a massive recovery, according to UBS.
Analyst Robert Jamieson initiated the stock with a buy rating, saying the worsened sentiment around ChargePoint has created an "attractive risk/reward" profile for investors. Shares climbed 4% in Wednesday morning trading.
CNBC Pro subscribers can read more here.
— Pia Singh
Energy stocks are holding on to their gains on Wednesday even as the broader market struggles.
The Energy Select Sector SPDR Fund (XLE) rose more than 2%, hitting new session highs shortly after the Dow turned negative. Exxon Mobil gained 2%, while Diamondback Energy climbed nearly 3%.
The price of oil was also moving higher, with futures for U.S. benchmark West Texas Intermediate crude hovering just under $93 per barrel.
— Jesse Pound
Stocks slipped to session lows as the market grappled with rising oil prices and bond yields.
Shortly before 11 a.m. ET, the three major indexes traded at their worst levels so far in Wednesday's session. The Dow fell more than 100 points, or 0.3%. The S&P 500 and Nasdaq Composite both slipped around 0.1%.
— Alex Harring
Oil prices climbed by more than $1 a barrel Wednesday, boosting energy stocks and adding pressure to the broader stock market.
Brent crude futures were up $1.77, or 1.9%, to $95.73 a barrel. U.S. West Texas Intermediate crude futures climbed $2.62 or 2.9%, to $92.98.
Energy stocks got a boost from the move higher, with the S&P 500 sector last advancing by 1.8% in midday trading. Occidental Petroleum and Halliburton shares each rose by more than 3%.
However, stocks came off their highs. The Dow Jones Industrial Average fell by more than 100 points, or 0.3%. The S&P 500 and Nasdaq fell by 0.1%.
— Sarah Min
Toymaker Mattel can shine even as the environment for consumer companies looks shaky, according to Morgan Stanley.
Analyst Megan Alexander initiated Mattel on Wednesday with an overweight rating, calling it a top pick. Shares are trading 4% higher.
"MAT is trading well below historical levels, and we expect the stock to re-rate on both an absolute and relative basis as (1) revisions turn positive, (2) it proves resilient in a deteriorating macro, and (3) it monetizes its strong IP in the wake of the Barbie movie." Alexander wrote.
CNBC Pro subscribers can read more here.
— Pia Singh
Energy was the best-performing sector in the S&P 500 on Wednesday, last up by more than 1%.
Shares of Occidental Petroleum gained more than 2%. Marathon Oil and Devon Energy rose about 2% each.
— Sarah Min