US close: Stocks erase gains as rebound proves short-lived
Early gains for US stocks were wiped out by the close on Wednesday, with all three Wall Street benchmarks closing firmly in the red, as the rebound following Monday's sell-off came to an abrupt end.
The Dow partially bounced back on Tuesday following a rapid three-day sell-off which saw 5.2% of its value wiped out on the back of fears about a US recession. However, the index was in the red once again on Wednesday, finishing down 0.6% at 38,763.45.
Meanwhile, the S&P 500 declined 0.8% to 5,199.50 and the Nasdaq dropped 1.1% to 16,195.81.
"The light macro and earnings calendar this week has proved to be an unexpected blessing, giving investors space to reassess their outlook on the next few months," said Chris Beauchamp, chief market analyst at IG.
"However, it might not take much to tip them into risk off mode again, particularly if signs of a fresh unwind in the yen trade rear their head.”
Mortgage applications were the only major release of the day. Applications surged by 6.9% in the week ended 2 August, according to the Mortgage Bankers Association, the sharpest increase in almost two months, erasing the prior two week's declines. Applications to refinance a mortgage soared almost 16%, while applications to purchase a new home ticked up just 1%.
Market movers
Airbnb shares dropped 13% after the rental platform posted second-quarter results that fell short of expectations and posted revenue guidance for the third quarter that underwhelmed investors.
Lyft announced its first-ever quarter in the black on the back of a record number of rides, but shares tanked 17% as guidance for the current quarter disappointed.
Disney beat estimates thanks to its first-ever streaming profit but warned of potential weakness at its theme parks, causing shares to fall 4%.
CVS Health fell 3% as it slashed its full-year profit guidance and announced a plan to cut as much as $2.0bn in expenses amid an increase in insurance costs.
Tesla dropped 4% after issuing a software update to nearly 1.7m cars in China to fix an issue with the bonnet latch that affected a similar number of vehicles in the US last month.
Dow Jones - Risers
Apple Inc. (AAPL) $209.82 2.75%
Merck & Co. Inc. (MRK) $112.46 1.21%
Procter & Gamble Co. (PG) $170.02 1.15%
Salesforce.Com Inc. (CRM) $240.04 0.68%
Coca-Cola Co. (KO) $68.49 0.60%
Goldman Sachs Group Inc. (GS) $473.23 0.59%
Travelers Company Inc. (TRV) $209.37 0.52%
Nike Inc. (NKE) $72.62 0.17%
Verizon Communications Inc. (VZ) $40.28 0.05%
JP Morgan Chase & Co. (JPM) $200.40 0.03%
Dow Jones - Fallers
Intel Corp. (INTC) $18.99 -7.07%
Walt Disney Co. (DIS) $85.96 -4.46%
Amgen Inc. (AMGN) $312.50 -4.14%
Home Depot Inc. (HD) $342.40 -3.25%
3M Co. (MMM) $122.84 -1.65%
Walmart Inc. (WMT) $66.91 -1.23%
Boeing Co. (BA) $163.24 -1.09%
American Express Co. (AXP) $228.80 -1.00%
Visa Inc. (V) $256.52 -0.67%
Dow Chemical Co. (DOW) $52.18 -0.59%
S&P 500 - Risers
CenturyLink Inc. (LUMN) $6.63 32.60%
Fortinet Inc. (FTNT) $69.93 25.26%
VF Corp. (VFC) $17.60 7.06%
Global Payments Inc. (GPN) $99.33 6.92%
Illumina Inc. (ILMN) $121.10 4.10%
CME Group Inc. (CME) $205.00 3.80%
MGM Resorts International (MGM) $36.47 2.94%
Devon Energy Corp. (DVN) $43.17 2.83%
Apple Inc. (AAPL) $209.82 2.75%
Paypal Holdings Inc (PYPL) $62.74 2.72%
S&P 500 - Fallers
TripAdvisor Inc. (TRIP) $13.61 -14.46%
Emerson Electric Co. (EMR) $99.54 -7.65%
Intel Corp. (INTC) $18.99 -7.07%
Walt Disney Co. (DIS) $85.96 -4.46%
Norwegian Cruise Line Holdings Ltd (NCLH) $14.84 -4.26%
Amgen Inc. (AMGN) $312.50 -4.14%
Idexx Laboratories Inc. (IDXX) $467.07 -4.11%
Dollar General Corp (DG) $118.42 -3.85%
Nvidia Corp. (NVDA) $98.91 -3.81%
Lowe's Companies Inc. (LOW) $231.67 -3.76%
Nasdaq 100 - Risers
Illumina Inc. (ILMN) $121.10 4.10%
Mercadolibre Inc. (MELI) $1,859.70 4.09%
Vodafone Group Plc ADS (VOD) $9.19 3.49%
Apple Inc. (AAPL) $209.82 2.75%
Paypal Holdings Inc (PYPL) $62.74 2.72%
Sirius XM Holdings Inc (SIRI) $3.11 2.47%
Meta Platforms Inc. (META) $488.92 1.74%
Liberty Global plc Series A (LBTYA) $18.76 1.63%
Check Point Software Technologies Ltd. (CHKP) $177.98 1.60%
Intuitive Surgical Inc. (ISRG) $449.26 1.46%
Nasdaq 100 - Fallers
Intel Corp. (INTC) $18.99 -7.07%
Qurate Retail Inc. (QRTEA) $0.62 -5.33%
Amgen Inc. (AMGN) $312.50 -4.14%
Idexx Laboratories Inc. (IDXX) $467.07 -4.11%
Nvidia Corp. (NVDA) $98.91 -3.81%
Skyworks Solutions Inc. (SWKS) $96.42 -3.63%
Broadcom Inc. (AVGO) $136.27 -3.60%
DENTSPLY Sirona Inc. (XRAY) $23.63 -3.51%
Microchip Technology Inc. (MCHP) $72.00 -3.19%
Lam Research Corp. (LRCX) $748.05 -3.17%