Pawan Kumar
Today stock market
The Dow Jones Industrial Average went up 0.1%, or 28 points. The S&P 500 went up 0.3%, and the Nasdaq Composite went up 1%. The price index for personal consumption expenditures, or PCE, went up 0.1% in December, which was less than what was expected, which was a 0.2% rise. Today stock market update.
Core PCE, which doesn’t include food and energy and is the Fed’s preferred measure of inflation, went up by 0.3%, which was about what was expected. However, for the 12 months ending in December, it went down from 4.7% to 4.4%.
Today stock market
Pantheon Macroeconomics said in a note that the slowing of core inflation is mostly due to better supply chains, not because of the Fed’s tightening. The Fed’s tightening will have an effect on inflation later.
Based on the data, Investing.com’s Fed Rate Monitor Tool says that it is now fully priced in that the Fed will raise rates by 25 basis points next week.
$SPY Finds Strength Late as Tesla Leads Charge Higher in Growth Stocks.
> https://t.co/RzkgZSYj7U $TSLA
— Trading Academy – Minneapolis (@MinneapolisOTA) March 28, 2022
Treasury yields, on the other hand, kept trading above water because people thought Jerome Powell would keep talking up the idea of higher rates for longer in the press conference after the monetary policy decision.
Also Read: Adani Group Responds to the Hindenburg Report with a point-by-point response.
But as long as inflation stays “persistently high,” the Committee is likely to say again that more policy changes are needed, Stifel said in a note.
Consumer discretionary was one of the sectors that did the best, in part because Tesla (NASDAQ:TSLA) rose more than 10% as investors continued to buy the electric car company after its quarterly results were better than expected earlier this week.
Tech, on the other hand, kept doing well, with Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), and Amazon (NASDAQ:AMZN) leading the way up, followed by Apple Inc (NASDAQ:AAPL) as investors look forward to more quarterly results from big tech companies next week.
Today stock market
Chip stocks had a hard time joining the rally, and Intel Corporation’s (NASDAQ:INTC) 6% drop didn’t help. This was because the chipmaker reported weaker-than-expected quarterly results and said that first-quarter revenue was likely to drop by more than a fifth.
Some people warned that Intel’s dividend is in danger because the company is having a rough time at the same time that it is spending more.
Credit Suisse said in a note, “We believe will need a V-shaped recovery in 2H to avoid continuing cash burn.” It also lowered its price target for the stock to $25. “That makes it possible that the dividend could be cut,” it said.
In other earnings news, American Express Company (NYSE:AXP) reported quarterly results and guidance that were better than what Wall Street expected. This made the stock go up by 10%. The company that makes credit cards also increased its dividend by 15%.
Oil prices and a 4% drop in Chevron (NYSE:CVX) after the oil giant reported quarterly earnings that fell short of expectations due to rising costs and writedowns pushed energy stocks down more than 1%. This meant that energy stocks didn’t join the rest of the market’s rally.
In other news, Adani Enterprises Ltd (NS:ADEL) lost more money, bringing its losses for the week to more than $50 billion. This happened after short-seller Hindenburg Research announced a short position in the stock and accused the Indian company of stock manipulation and accounting fraud.
