US benchmark equity indexes declined intraday as markets analyzed the latest corporate earnings and economic data ahead of Tesla's results. The Nasdaq Composite was down 1.9% at 18,223.6 after midday Wednesday, while the S&P 500 fell 1.2% to 5,784.2. The Dow Jones Industrial Average lost 1.1% to 42,464.6.
Among sectors, technology and consumer discretionary saw the steepest declines. Only real estate and utilities were in the green. In company news, Enphase Energy shares were down 15%, the worst performer on the S&P 500. The company's third-quarter results fell short of Wall Street's expectations late Tuesday, prompting rating downgrades by multiple analysts. McDonald's saw the steepest decline on the Dow and among the steepest on the S&P 500 intraday Wednesday, down 5.1%.
US health authorities said they are investigating an E. coli outbreak in several states linked to the fast-food giant's Quarter Pounder burgers. CoStar Group shares were down 7%, the worst Nasdaq performer and the second-steepest on the S&P 500. Late Tuesday, the company logged third-quarter revenue that fell short of the Street's views. AT&T posted an unexpected decline in third-quarter revenue amid challenges in business wireline that led to a multi-billion dollar write-down, though it remains on track to meet its full-year targets.
The company's shares were up 4% intraday, among the top gainers on the S&P 500. Electric vehicle maker Tesla is scheduled to report results after Wednesday's closing bell, along with other major names like T-Mobile US, IBM, ServiceNow, and O'Reilly Automotive. The US 10-year yield rose 3.2 basis points to 4.24% intraday, while the two-year rate increased 4.1 basis points to 4.08%. In economic news, US existing home sales unexpectedly fell in September, though signs usually tied to higher sales are emerging, according to data released by the National Association of Realtors.
"There are more inventory choices for consumers, lower mortgage rates than a year ago and continued job additions to the economy," NAR Chief Economist Lawrence Yun said. Separately, Oxford Economics said its baseline assumption is for a modest recovery in home sales to start in the fourth quarter. Sales should gain traction next year, though a recent rebound in mortgage rates and hurricanes Helene and Milton could delay the projected recovery, the brokerage said. Mortgage application volume in the US declined for the fourth consecutive week to its lowest point since July amid lower purchase and refinancing activities, the Mortgage Bankers Association said. West Texas Intermediate crude oil was down 1.2% at $70.85 a barrel intraday. Gold fell 1% to $2,730.80 per troy ounce, while silver dropped 3.4% to $33.84 per ounce..