Tech shares rise amid mixed earnings; yields drop

Shares of technology stalwarts rose while the broader U.S. equity market was mixed amid a slew of earnings reports, a decline in commodity prices and renewed concerns about economic growth. Bonds gained.

Shares of technology stalwarts rose while the broader U.S. equity market was mixed amid a slew of earnings reports, a decline in commodity prices and renewed concerns about economic growth. Bonds gained.

Google parent Alphabet Inc., Amazon.com Inc. and Tesla Inc. pushed the tech-heavy Nasdaq 100 higher for a third day. The S&P 500 and Dow Jones Industrial Average fluctuated between gains and losses after setting closing record highs Tuesday. McDonald’s Corp., Coca-Cola Co. and Kraft Heinz Co. climbed after positive results. Microsoft Corp. also advanced after upbeat reports late Tuesday. Robinhood Markets Inc. slumped after missing revenue estimates. Visa Inc. and General Motors Co. also declined.

“Until we get more clarity on fiscal, and given supply chain problems are better at the margin -- but not going away -- we are likely in for a headline ping-pong-ball market for a while,” said Dennis DeBusschere, founder of 22V Research, an independent research shop.

Mining and energy stocks led a retreat in the Stoxx Europe 600 index as prices of raw materials including aluminum and iron ore fell along with crude oil. Germany’s DAX underperformed after Europe’s biggest economy cut its 2021 growth forecast, citing the lingering effects of the pandemic and a supply squeeze. Bund yields dropped along with those on other European bonds.  

Investors are counting on earnings to support equity prices, and so far the reporting season has been solid overall. But worries remain that over time rising raw material and wage costs and supply-chain snarls could crimp margins and weigh on the global economy recovery.