© Reuters.
By Liz Moyer
Investing.com -- U.S. stocks were falling after earnings reports from Netflix and Morgan Stanley as investors worried about the Federal Reserve’s next move on interest rates.
At 11:26 ET (15:26 GMT), the Dow Jones Industrial Average was down 100 points or 0.3%, while the S&P 500 was down 0.3% and the NASDAQ Composite was down 0.3%.
Treasury yields were rising on expectations the Fed could keep rates higher for longer. Futures traders expect the central bank to raise rates again by a quarter of a percentage point when it meets in May.
Tesla (NASDAQ:TSLA) stock was down 1.4% ahead of its earnings report later today, and Wall Street assesses the effect of price cuts on its electric vehicle models on gross profit margins.
Shares of streaming giant Netflix (NASDAQ:NFLX) fell 3.9% after it issued a disappointing forecast for second quarter results, after pushing back its crackdown on password sharing in the U.S. to the current quarter.
Morgan Stanley (NYSE:MS) shares were down 0.6% after the investment bank beat expectations but couldn’t shake the downturn in deal-making across Wall Street that is weighing on results compared with a year ago.
The 2-year Treasury rose to 4.259% and the 10-year yield rose to 3.63%.
Later today, the Fed will release its periodic Beige Book report, which is a snapshot of economic conditions in its district banks across the country. It’s the first report since March’s banking sector turmoil, so it could provide clues about lending trends.
Oil was falling. Crude Oil WTI Futures was down 1.6% to $79.55 a barrel, while Brent crude was down 1.5% to $83.44 a barrel. Gold Futures was down 0.6% to $2006.
