On Wednesday, March 13, 2024, the US stock market showcased a mixed performance, influenced by various economic indicators and corporate news. The day was marked by a slight uptick in yields, with the US 2-year yield staying above 2.6%, following the February CPI report. This movement in yields came alongside a notable rise in crude oil prices, driven by an unexpected decrease in both crude and gasoline inventories, as per the latest EIA weekly inventory reading.

In the realm of cryptocurrencies, Bitcoin reached new highs, mirroring the positive movement seen in the German Dax index. However, the flow of corporate news began to slow as the earnings season neared its conclusion. Among the highlights, Williams-Sonoma reported impressive results and guidance, standing out amidst the general stagnation observed in parts of the US housing market, attributed to the prevailing interest rates. On the other hand, shares of US Steel witnessed a decline following reports that President Biden is set to express concerns about its proposed acquisition by Nippon Steel.

Small cap stocks, however, showed some resilience, outperforming the broader market, aided by sectors such as energy and financials.

• Mortgage and Market Dynamics: The MBA Mortgage Applications saw a decrease to 7.1% from 9.7% in the previous week. Energy sector reports indicated a drop in crude inventories by 1.5 million barrels and a significant 5.7 million barrel decline in gasoline inventories, suggesting stronger demand or lower supply than expected.
• Treasury and Inflation: A reopening of $22 billion in 30-year bonds drew a higher yield than prior, reflecting market anticipation regarding inflation and interest rates. Treasury Secretary Yellen hinted at a potential decrease in inflation, attributing it mainly to a single, significant contributor expected to diminish throughout the year.
• Global Perspectives: In Europe and Asia, notable developments included a marked decline in Euro Zone’s industrial production and statements from Finland’s PM about Russia’s long-term conflict intentions. China’s regulatory moves to bolster urban real estate financing and joint copper production cuts signal significant policy and market shifts.

Several companies made headlines with their financial reports and guidance:

• Williams-Sonoma outperformed expectations, signaling strength despite a slow housing market.
• US Steel’s potential takeover concerns led to a dip in its share price.
• Various corporations, including ADS.DE, BIRD, PRPL, and DLTR, shared their earnings outcomes and projections, painting a diverse picture of the corporate landscape.

The day ended with mixed signals across major indexes:

• The Dow Jones Industrial Average slightly increased by 0.1%.
• The S&P 500 saw a small decrease of 0.2%.
• The Nasdaq Composite dropped by 0.5%.
• The Russell 2000 index, representing small caps, gained 0.3%.

Significant after-hours movers included PATH, with an 8% increase post-earnings, while S experienced a 10% drop following its earnings report. FSR saw a drastic 50% decrease amid reports of potential bankruptcy considerations.

The day’s events underscore the complex interplay of economic indicators, corporate performance, and geopolitical developments shaping the US stock market’s direction.