The S&P 500 closed lower Wednesday, as the Fed's Beige Book report stoked inflation jitters somewhat offsetting intraday optimism following earnings from Wall Street banks that topped estimates.
The S&P 500 fell 0.4%, after hitting a record intraday high of 4,151.97, the Dow Jones Industrial Average rose 0.16%, or 54 points, but had hit a record of 33,911.25, and the Nasdaq Composite was off 0.99%.
Many districts reported moderate price increases, with some saying prices rose more robustly, according to the Fed's Beige Book report. "Contacts generally expect continued price increases in the near term."
Still, many are betting that bullish quarterly earnings will sustain bullish bets on the broader market.
JPMorgan (NYSE:JPM),Goldman Sachs (NYSE:GS) and Wells Fargo (NYSE:WFC) reported results that beat on both top and bottom lines.
Goldman Sachs was the standout performer as first-quarter earnings of $18.60 a share came in well above estimates of $10.19 a share, led by record investment banking revenue and a jump in trading revenue.
Goldman Sachs' Q1 performance was "very strong," and showed "remarkable revenue generation," UBS said.
Bed Bath & Beyond (NASDAQ:BBBY), meanwhile, reported earnings that topped estimates, but a 16% decline in sales and softer guidance pressured its shares to fall 12%.
“The co. highlighted continued positive trends in 1Q QTD. Still, its 1Q sales guidance of 40% is below the cons. of 46%,” UBS said.
Beyond earnings, Moderna (NASDAQ:MRNA) delivered a positive update on its vaccine, easing some of the concern following the Johnson & Johnson (NYSE:JNJ) vaccine setback on Tuesday.
Moderna said late-Tuesday that new data show its vaccine is more than 90% effective six months after the second shot, sending its shares nearly 7% higher.
Energy, meanwhile, followed oil prices higher as data showed U.S. crude inventories fell more than expected, stoking optimism that energy demand remains firm.
U.S. crude oil stocks fell by 6 million barrels, well above the 2.9 million barrel decline expected.
Technology stuttered following its run higher as rising bond yields, which had weighed on growth stocks, appears to be running out of steam.
Google-parent Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), Facebook (NASDAQ:FB) and Amazon.com (NASDAQ:AMZN) and Microsoft (NASDAQ:MSFT), the so-called Fab 5, were lower.
In other news, Coinbase Global (NASDAQ:COIN) ended up 31% higher after making its public market debut through a direct listing at $381 per share, up from the reference price of $250.
Coinbase's current business model has come under security amid concerns that increased competition will eventually cut into the company's high trading fees, which make up more than 90% of revenue.
But Coinbase CEO Brian Armstrong has suggested the company is investing in other business streams to generate more stable revenue that could eventually make up about half of total revenue, easing the reliance on trading fees.