Wall Street Today | Stocks Little Changed as Inflation Accelerates
RECAP
Stocks Struggle to Find a Direction
US stocks fluctuated before closing little changed Thursday as investors gauge how the latest data on inflation and jobless claims would influence the path of interest rates in the US.
The $S&P 500 Index(.SPX.US$ index traded between 4,739.58 and 4,798.50 before ending the day down 0.07%. The $Nasdaq Composite Index(.IXIC.US$ closed flat while the $Dow Jones Industrial Average(.DJI.US$ rose 0.04%.
Federal Reserve Bank of Cleveland President Loretta Mester told Bloomberg that the monetary policy would need to remain in restrictive level in order for the Fed to meet its goal of bringing core inflation down to its target.
MACRO
Inflation Accelerates
The consumer price index rose in December at the fastest pace in three months, highlighting the challenge faced by US Federal Reserve officials in their fight to cool inflation and weakening the case for aggressive interest rate cuts.
Inflation was at 3.4% in the 12 months ended December, accelerating from 3.1% in November, the US Bureau of Labor Statistics said Thursday. That's higher than the 3.2% average estimate compiled by Bloomberg. The consumer price index, which excludes the volatile food and energy items, rose 3.9%, above the 3.8% expected by economists, according to the news organization.
In an interview with Bloomberg, Federal Reserve Bank of Cleveland President Loretta Mester said the latest consumer price index data shows policymakers have more work to do to bring inflation down to the Fed's target and that task would require a "restrictive monetary policy."
March may be too early for a rate cut, and policymakers will discuss that move as they see more evidence that inflation is on a sustainable downward path toward the Fed's target, Mester told Bloomberg.
SECTORS
Crude oil rose after Iran seized a tanker in the Gulf of Oman, fueling concerns of a wider Middle East conflict that could disrupt supply of the commodity.
Bitcoin also swung between gains and losses a day after the Securities and Exchange Commission approved the trading and listing of 11 exchange-traded funds that hold the cryptocurrency. That fueled the debate over whether the asset could attract enough institutional investors to boost liquidity and reduce Bitcoin's volatility.
COMPANIES
180% Surge in Game Downloads
$Netflix(NFLX.US$ shares gained after market intelligence firm Sensor Tower estimated that the streaming giant saw a 180% surge in game downloads in 2023, buoyed by popular titles including Grand Theft Auto offered through its mobile gaming service.
Novartis Walks Away
$Cytokinetics(CYTK.US$ shares tumbled after the Wall Street Journal reported that Novartis has walked away from the deal to buy the late-stage biopharmaceutical company focused on developing heart treatment.
Hertz Slashes EV Fleet
$Hertz Global(HTZ.US$ shares declined after the car rental company said it plans to sell 20,000 electric vehicles, about a third of its US EV fleet, and reinvest the proceeds in vehicles powered by fossil-fuel to meet demand. That also hurt investor sentiment toward EV markers including $Tesla(TSLA.US$and $Rivian Automotive(RIVN.US$
Lucid's Disappointing Deliveries
$Lucid Group(LCID.US$ shares slumped to new record-low after the maker of luxury electric vehicles reported fourth-quarter deliveries that missed analysts' estimates.
ChargePoint's Layoffs
$ChargePoint(CHPT.US$'s stock rose on Thursday after the company said it will cut 12% of its workforce as it aims to lower costs by about $33 million a year.
Source: Bloomberg, Dow Jones, CNBC, Reuters
Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested into. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose of the above content. See this link for more information.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
Read more
Comment
Sign in to post a comment
Moomoo News Official Account
In 10 minutes it’s history. At four I’m a dinosaur!
37KFollowers
26Following
39KVisitors
Follow