Wednesday, February 21, 2024  

 
Printable Page Headline News   Return to Menu - Page 1 2 3 5 6 7 8 13
 
 
Financial Markets                      02/21 15:31

   

   NEW YORK (AP) -- Stocks ended mostly higher on Wall Street after a listless 
day of trading. The S&P 500 edged up 0.1%. The Dow also added 0.1% after 
turning slightly higher just before the close. Weakness in technology shares 
weighed on the Nasdaq, which ended 0.3% lower. Palo Alto Networks sank more 
than 28%. The network security company forecast billings that came in well 
below what analysts were looking for. Amazon rose following news that it would 
be added to the Dow. Walgreens Boots Alliance, which is leaving the Dow, fell. 
The yield on the 10-year Treasury climbed to 4.32%.

   THIS IS A BREAKING NEWS UPDATE. AP's earlier story follows below.

   NEW YORK (AP) -- Stocks fell on Wall Street Wednesday as weakness in 
technology companies continues to drag on the market.

   The S&P 500 slipped 0.5% in afternoon trading. The tech-heavy Nasdaq gave up 
1.1% and the Dow Jones Industrial Average fell 178 points, or 0.5% as of 2:43 
p.m. Eastern.

   Palo Alto Networks was a big loser and a particularly heavy weight on the 
technology sector. The network security company sank 27.2% after giving 
forecasts for future billings that came in well below what analysts were 
looking for. Its rival, Fortinet, slumped 4.6%.

   Amazon rose 0.1% following an announcement that it would be added to the 
Dow. Walgreens Boots Alliance, which is leaving the Dow, fell 3.3%

   Bond yields remained relatively steady. The yield on the 10-year Treasury 
rose to 4.32% from 4.28% late Tuesday.

   Markets were mostly higher in Europe and mixed in Asia.

   Earnings remained the big focus for Wall Street. Nvidia will report its 
highly anticipated results later in the day. The chipmaker has tripled over the 
past year thanks to a surge in investor enthusiasm over artificial intelligence.

   Technology stocks drove much of the market's rally that brought it to new 
records just last week. The sector is also showing some of the strongest 
earnings growth. But, lopsided contributions from some of the bigger companies 
in the sector have raised questions about whether the gains were overdone.

   "In February we're seeing some of that settle out as we try and get a better 
bead on how the full year is going to go," said Rob Haworth, senior portfolio 
manager at U.S. Bank Wealth Management.

   Several other companies made big moves following the release of their 
financial results. Electronic measurement technology company Keysight 
Technologies fell 7.3% after its profit forecast fell short of analysts' 
expectations. Garmin, which makes personal navigation devices, jumped 10% after 
beating earnings forecasts.

   Toll Brothers rose 4.1% after giving investors an encouraging financial 
update as it sees strong demand. That helped support gains throughout the 
homebuilding sector.

   Energy companies gained ground as natural gas prices jumped 9%. Exxon Mobil 
rose 1.9%.

   The Federal Reserve released minutes from its latest meeting in January that 
showed most officials are worried about moving too fast to cut their benchmark 
interest. The central bank left the rate alone for the fourth time in a row at 
that meeting. Investors have all but lost hope that the central bank will cut 
rates at its March meeting and are looking for the first rate cut to come in 
June.

   Investors have to wait until next week for another key update on inflation. 
That's when the government will release its monthly report on personal 
consumption and expenses, the Fed's preferred measure of inflation. The central 
bank's goal has been to tame inflation back to 2% and analysts expect that 
report to show it cooled to 2.3% in January. Inflation by that measure peaked 
at 7.1% in June of 2022.

   "As long as the labor market holds up, the Fed can afford to slow walk rate 
cuts," said Jamie Cox, managing partner for Harris Financial Group. "Inflation 
fighting is much easier when the labor market cooperates."

   Separate measures for consumer and wholesale prices in January show that 
inflation didn't cool as much as anticipated. That prompted investors to shift 
expectations for rate cuts from March to June. A weak report on retail sales 
added to the disappointing inflation data and raised concerns that stubborn 
inflation is inflicting more pain on consumers. Tighter consumer spending could 
put more pressure on businesses in 2024.

   ---------

   itemid:b47c7210175f588cc27a3bb3c4114639

 
 
Copyright DTN. All rights reserved. Disclaimer.
Powered By DTN