US benchmark equity indexes experienced a decline on Wednesday as the markets scrutinized the latest corporate earnings reports and economic indicators leading up to the much-anticipated results from Tesla. With an impending announcement after the closing bell, investors are keen to gauge Tesla's performance alongside other significant players such as T-Mobile US, IBM, ServiceNow, and O'Reilly Automotive. The Federal Reserve's Beige Book revealed that the overall state of the US economy has remained relatively unchanged since early September, aside from modest growth recorded in two of the Federal Reserve districts.
The data highlighted a downturn in manufacturing activity, inconsistent consumer spending, and an increase in the inventory of homes available for sale—all indicative of a fluctuating economic landscape. The Mortgage Bankers Association underscored the challenges faced within the housing market, announcing a notable 6.7% drop in mortgage applications for the week ending October 18th.
This marks the lowest level recorded since July, following a 17% decrease the previous week. The decline in refinancing activity, as well as new applications for home purchases, was attributed to a relatively stable mortgage rate amid a backdrop of previous weekly increases that have created uncertainty among potential homebuyers. In the commodities market, December West Texas Intermediate crude oil saw a decline of $0.97, settling at $70.77 per barrel.
Meanwhile, December Brent crude, recognized as the global benchmark, was last noted at $75.01, experiencing a $1.03 drop. The decrease followed reports revealing a larger-than-expected surge in U.S. oil inventories and a strengthening dollar that has further complicated market conditions. In corporate news, McDonald's experienced a significant 5.2% drop in its stock value after health authorities in the US announced an investigation into an E.
coli outbreak linked to the fast-food giant's Quarter Pounder burgers. This news has raised concerns among investors about the company's future sales prospects. AT&T reported an unforeseen decline in its Q3 revenue, primarily attributed to challenges in its business wireline services, which also resulted in a multi-billion dollar write-down.
Despite these setbacks, the company remains confident in achieving its full-year targets, as evidenced by a 4.6% increase in its share price following the announcement. Market participants will continue to monitor these developments closely as they grapple with the broader economic landscape that currently presents both challenges and opportunities..