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Stock market today: Dow ekes out win as inflation cools, Tesla leads growth stocks up

By PRADISH GPublished about a year ago 3 min read
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What Is Stock Market?

The stock market is a financial marketplace where stocks (shares of ownership in a company) are bought and sold. Companies sell stocks to raise money for operations and expansion, and individuals and institutions buy stocks as an investment, with the goal of earning a return through dividends (a portion of a company's profits paid to shareholders) and/or capital appreciation (an increase in the stock's value). The stock market is often divided into two main categories: the primary market, where new stocks are issued, and the secondary market, where existing stocks are traded. The most well-known stock market in the United States is the New York Stock Exchange (NYSE), but there are other stock markets around the world, such as the NASDAQ and the Tokyo Stock Exchange.

The stock market can be affected by a wide variety of factors, including economic indicators, company-specific news, and global events. Investors and analysts use various tools and methods to analyze and make decisions about the stock market, such as fundamental analysis (looking at a company's financial and economic fundamentals) and technical analysis (looking at a stock's past performance and trading volume). The stock market can be volatile and unpredictable, and investing in the stock market carries a level of risk.

Today Stock Market

By Yasin Ebrahim

Investing.com -- The Dow eked out a win Friday as Tesla led a melt-up in growth stocks as further signs of easing inflation cemented expectations for a widely expected Federal Reserve downshift next week.

The Dow Jones Industrial Average gained 0.1%, or 28 points, the S&P 500 rose 0.3%, and the Nasdaq Composite was up 1%.

The personal consumption expenditures, or PCE price index rose 0.1% in December, slower than expectations for a 0.2% rise.

Core PCE, which excludes food and energy and is the Fed’s preferred inflation measure, rose 0.3%, in line with expectations, though slowed to 4.4% for the 12 months through December from 4.7% previously.

“[T]he slowing in core inflation at this point is largely due to improving supply chains, rather than the impact of the Fed’s tightening; that will work through later,” Pantheon Macroeconomics said in a note.

Following the data, expectations that the Fed will hike rates by 25-basis points rate hike next week are now fully priced in, according to Investing.com’s Fed Rate Monitor Tool .

Treasury yields, however, continued to trade above water amid expectations that Jerome Powell will continue to talk up the prospect of higher for longer rates in the press conference that follows the monetary policy decision.

But as inflation remains “stubbornly elevated, the Committee is likely to reiterate the need for further policy action,” Stifel said in a note.

Consumer discretionary was among the biggest gainers, inspired by a more than 10% rally in Tesla (NASDAQ:TSLA) as investors continued to pile into the EV maker following its better-than-expected quarterly results earlier this week.

Tech, meanwhile, continued to shine brightly, with Alphabet (NASDAQ:GOOGL), Meta Platforms (NASDAQ:META), Amazon (NASDAQ:AMZN) leading to the upside followed Apple Inc (NASDAQ:AAPL) as investors look ahead to more quarterly results from big tech next week.

Chip stocks struggled to join the rally, weighed down by a 6% slump in Intel Corporation (NASDAQ:INTC) after the chipmaker delivered weaker-than-expected quarterly results, with guidance that estimated quarterly revenue to drop by more than a fifth in the first quarter.

Some warned that the bumpy ride around for Intel just as the company is ramping up spending puts its dividend at risk.

“[W]e believe will need a V-shaped recovery in 2H to avoid continued cash burn," Credit Suisse said in a note and cut its price target on the stock to $25. “That unfortunately opens the potential for a dividend cut,” it added.

Elsewhere on the earnings front, American Express Company (NYSE:AXP) reported quarterly results and guidance that topped Wall Street forecasts, sending the stock 10% higher. The credit card company also hiked its dividend by 15%.

Energy stocks sidestepped the broader market rally, falling more than 1% pressured by oil prices and a 4% slide in Chevron (NYSE:CVX) after the oil major reported quarterly earnings that fell short of expectations as rising costs and writedowns weighed.

In other news, Adani Enterprises Ltd (NS:ADEL

Adani Enterprises Ltd

Watch

2,761.45

-627.50

(-18.52%)

26-06 Close INR

04:00

06:00

08:00

3.00K

2.40K

2.60K

2.80K

3.20K

) fell further into the red, taking losses for the week to more than $50 billion after short-seller Hindenburg Research announced a short position in the stock, accusing the Indian firm of engaging in stock manipulation and accounting fraud.

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  • PRADISH G (Author)about a year ago

    Good understanding

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