U.S. Stocks Open Mostly Lower After ECB Rate Move

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U.S. Stocks Open Mostly Lower After ECB Rate Move
Credit: © Reuters.

By Liz Moyer

Investing.com -- U.S. stocks wobbled at the open as corporate earnings season continued and the European central bank made its first move to tackle inflation by raising interest rates.

At 9:38 AM ET, the Dow Jones Industrial Average was down 133 points, to 0.4% while the S&P 500 was down 0.2% and the NASDAQ Composite was flat.

New jobless claims rose to 251,000 last week, the third weekly gain in a row and the first time above 250,000 since January. 

Meanwhile, the European Central Bank raised interest rates by a half-percentage point. It was the ECB’s first rate hike in more than a decade as it, too, tries to combat inflation. The Federal Reserve is expected to make another move on interest rates next week .

Corporate earnings continue to roll in, and for the most part, companies have been beating expectations. 

For example, Tesla Inc (NASDAQ: TSLA ) beat expectations though its automotive gross margins shrank. Its quarter was affected by factory disruptions in China, where operations shut down for a while because of Covid. Shares rose 4.7%.

American Airlines (NASDAQ: AAL ) shares rose after it forecast profit for the third quarter on the strength of travel demand. Shares fell 7%.

Union Pacific Corporation (NYSE: UNP ) and AT&T Inc (NYSE: T ) both beat expectations. Shares fell 0.1% and 9%, respectively.

Oil fell. Crude Oil WTI Futures was down 3.3%, to $96.55 a barrel, while Brent Oil Futures crude fell 3%, to $103.69 a barrel. Gold Futures was flat at $1,699 an ounce.

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