Stocks lose ground on Wall Street as more earnings roll in

Stocks are broadly lower on Wall Street in afternoon trading Wednesday, giving back some of the market's recent gains, as investors weigh another batch of company earnings reports.

Several companies including Netflix and United Airlines rose sharply after releasing their quarterly reports, while others, including Abbott Laboratories and M&T Bank, sank.

The S&P 500 fell 1.1% as of 2 p.m. Eastern. The Dow Jones Industrial Average fell 228 points, or 0.8%, to 30,297 and the Nasdaq fell 1.3%. Smaller companies fell more than the rest of the market.

Stocks are coming off of two days of gains, but trading remains unsteady overall. Treasury yields rose back near multi-year highs. Crude oil prices rose.

Homebuilders and other housing industry-related companies fell following a report showing that construction on new homes declined more than expected in September. Homebuilder Lennar fell 6% and home-improvement retailer Lowe's slid 5.9%.

The yield on the 10-year Treasury, which influences mortgage rates, rose to 4.11% from 4.02% late Tuesday. The yield on the two-year Treasury, which tends to track expectations for future Federal Reserve action, also rose to 4.54% from 4.43%.

U.S. crude oil prices rose 3.8%, giving a boost to energy stocks. Exxon Mobil rose 2.8%. The White House plans to announce another release of oil from the U.S. strategic reserve.

Investors have been focusing on the latest round of corporate earnings this week. The latest results are being closely watched for clues about how companies are dealing with the hottest inflation in four decades and how they intend to operate through the rest of the year and into 2023.

Netflix soared 12.8% after the company said it picked up 2.4 million subscribers during the July-September period, a comeback from a loss of 1.2 million customers during the first half of the year.

United Airlines rose 6.7% after reporting strong third-quarter financial results. American Airlines will report its results on Thursday.

Household goods giant Procter & Gamble rose 1.4% after also reporting strong financial results. It joined a growing list of companies, including Hasbro and Johnson & Johnson, warning investors about a strong U.S. dollar cutting into revenue. A strong dollar decreases the value of overseas sales after converting the currency. The U.S. currency is now worth more than a euro for the first time in 20 years.

The dollar has gained strength versus currencies worldwide as inflation and recession concerns prompt investors to look for relatively stable investments. Central governments and banks worldwide are dealing with stubbornly hot inflation. British food prices rose at the fastest pace since 1980 last month, driving inflation back to a 40-year high.

The U.S. faces its own potential recession as high prices on everything from food to clothing barely budge and the Fed raises interest rates to temper inflation.

The Fed's rate increases are meant to make borrowing more difficult and slow economic growth in an effort to tame inflation. The strategy risks stalling the already slowing U.S. economy and bringing on a recession.

“That's the game of chicken that’s going on,” said Steve Chiavarone, senior portfolio manager at Federated Hermes. “The Fed can only restore price stability by hurting demand, i.e. causing a recession.”

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Joe McDonald and Matt Ott contributed to this report.