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The Dow Jones Industrial Average and other major indexes opened lower on Wednesday as the yield on the benchmark 10-year U.S. Treasury note continued its upward climb, reaching 4.23%—a level not seen since July. However, there was some relief for investors as oil prices eased, with West Texas Intermediate (WTI) futures trading around $70.65 per barrel.
Shortly after the opening bell, the Dow had dropped 256 points, or 0.6%, while the tech-heavy Nasdaq and the S&P 500 declined by 0.4% and 0.3%, respectively.
Today, all eyes are on Tesla (TSLA-1.00%) as the company prepares to release its latest earnings report. Analysts expect earnings per share to be 60 cents, down from 66 cents a year ago but an improvement from 52 cents in the previous quarter, according to FactSet estimates. Revenue is projected to hit $25.4 billion, compared to $23.3 billion in the third quarter of 2023 and $25.5 billion in the preceding quarter.
Apart from Tesla, investors are closely monitoring earnings reports from other major corporations, including AT&T (T+2.60%), Boeing (BA-1.04%), and Coca-Cola (KO-2.02%). Later in the day, attention will also turn to the Federal Reserve’s Beige Book, scheduled for release at 2 p.m. ET. This report provides a detailed overview of economic conditions across the 12 Federal Reserve Districts, offering insights into the central bank’s perspectives on inflation, employment, and broader economic growth.
McDonald’s stock plunges over 6%
McDonald’s (MCD-5.60%) shares took a sharp hit, falling over 6% after the Centers for Disease Control and Prevention (CDC) linked the chain’s Quarter Pounder burgers to an E. coli outbreak. The outbreak has led to 10 hospitalizations and one death, driving a significant decline in McDonald’s stock during the morning trading session.
As of now, 49 cases have been reported across 10 states between Sept. 27 and Oct. 11, with a majority of illnesses occurring in Colorado, Nebraska, Utah, and Wyoming. The CDC noted that most of those affected had eaten a Quarter Pounder. Investigators are working swiftly to identify the contaminated ingredient.
Spirit Airlines stock soars 30%
After a failed attempt at merging with JetBlue (JBLU-2.24%), ultra-low-cost carrier Spirit Airlines (SAVE+43.08%) is reportedly turning back to a familiar frenemy. The Wall Street Journal (NWSA+0.34%), citing people familiar with the matter, reports that Spirit and Frontier Airlines (ULCC+0.82%) are in early talks over a potential merger. The news sent Spirit’s stock soaring nearly 30% on Wednesday morning.
–Francisco Velasquez and Rocio Fabbro contributed to the article
