Stitch Fix Drops More Than 20% Despite Strong Results

Stocks on a suddenly shaky Wall Street ended the day roughly back where they started after whipping through a couple of reversals.

• The S&P 500 fell 1.90 points, or less than 0.1%, to 7,704.13 following several turns between losses and gains.
• The Dow Jones Industrial Average fell 161.61 points, or 0.3%, to 51,349.98.
• The Nasdaq composite rose 3.34 points, or less than 0.1%, to 26,939.37.

Stocks have slowed their rally since the S&P 500 climbed to the brink of its all-time high earlier this week as pressure from the bond market has cranked higher, the AP reports. Treasury yields swiveled along with oil prices before ultimately rising by the end of the day.

The yield on the 10-year Treasury climbed to 5.16% from 5.11% late Wednesday and briefly got near 5.18% earlier in the day. It's back to where it was in 2007, and high yields slow the overall economy by making it more expensive to borrow money while also undercutting prices for stocks and other investments. Once again, it was yields following the track of oil prices. The price for a barrel of Brent crude in the most actively traded part of the market went from $102 to roughly $99 in a matter of minutes midday Thursday. It later rose to settle at $100.22, up 2.1% from the prior day.

• It's not just worries about expensive oil and inflation that have sent Treasury yields higher. The US economy continues to expand, which also supports yields. The bond market got a major jolt Wednesday after a preliminary report suggested US business activity is growing at its fastest pace in years, while costs for corporate America are also rising quickly.
• On Thursday, a report showed fewer US workers applied for unemployment benefits last week and further strengthened expectations for the economy. Such numbers could convince the Federal Reserve that the economy can withstand more hikes to short-term interest rates.

Late Wednesday, Stitch Fix became one of the latest US companies to report better quarterly results than analysts expected. But its stock nevertheless tumbled 21.6% Thursday after it said "a more challenging consumer environment" could hold back its revenue growth this upcoming fiscal year. Darden Restaurants, the company behind Olive Garden and LongHorn Steakhouse, fell 3% after reporting a profit for the latest quarter that matched analysts' expectations. On the winning side of Wall Street was Everpure. The data storage and management company's stock jumped 11.2% after it stood by its financial forecasts for this fiscal year and said it expects revenue growth to accelerate in the following one.