Stocks traded lower on Thursday as fears of rising interest rates overshadowed strong corporate earnings.
The Dow Jones Industrials fell 157.86 points at the outset to 25,548.82, led by declines in Caterpillar and Apple.
The S&P 500 slumped 16.23 points to 2,792.95, as energy and industrials lagged.
The NASDAQ was down 64.72 points to 7,577.98
Housing stocks fell as rates rose. Toll Brothers slouched 0.9% and PulteGroup declined 1.4%. They also fell after Bank of America Merrill Lynch downgraded shares of Toll Brothers and PulteGroup, along with NVR, as it reduced its forecast for housing starts.
The stronger yields offset strong corporate earnings results released Thursday. Dow-member Travelers, Bank of New York Mellon, BB&T and Danaher were among the companies that reported better-than-expected earnings before the bell.
Investors came into the earnings season with high hopes. Analysts polled by FactSet expected third-quarter earnings to have grown by 19% on a year-over-year basis. So far, the season is off to a good start. Of the S&P 500 companies that have reported, 84.1% have posted better-than-expected profits.
Prices for the benchmark for the 10-year U.S. Treasury remained pat, keeping yields at Wednesday’s 3.2%.
Oil prices slid 72 cents at $69.03 U.S. a barrel.
Gold prices dipped $1.30 an ounce to $1,226.10
