U. S. stock market ends week with growth
2023.01.27 15:21
U. S. stock market ends week with growth
By Tiffany Smith
Budrigannews.com – On Friday marked the end of a turbulent week in which economic data and corporate earnings guidance both suggested softer demand but also economic resilience ahead of the Federal Reserve monetary policy meeting next week. As a result, Wall Street advanced on Friday.
After sliding earlier in the session, all three major stock indexes in the United States were last in green, with the Nasdaq leading the pack.
The S&P 500, the Dow Jones Industrial Average, and the tech-heavy Nasdaq appear to be on track for their fourth consecutive week of gains since Friday’s close.
The much-anticipated personal consumption expenditures (PCE) report from the Commerce Department came out largely in line with consensus, showing that demand was cooling and inflation was cooling. This is exactly what the Federal Reserve’s restrictive interest rate hikes are meant to do.
Matthew Keator, managing partner of the Keator Group, a wealth management firm in Lenox, Massachusetts, stated:
“(The PCE report) is welcome news with regard to the Fed’s mission, but they’re not ready to retreat at this point.”
The hope is that they will begin to moderate their hawkish tones, but they will remain focused on their mission.
However, Fed Chair Jerome Powell has made it abundantly clear that the battle against decades-high inflation is far from over for the central bank. At the end of the policy meeting next week, the central bank is still expected to raise the Fed funds target rate by 25 basis points, according to the financial markets.
With 143 of the S&P 500’s companies reporting, the fourth-quarter earnings season is heating up. According to Refinitiv, of those, 67.8% have outperformed Wall Street expectations, which is slightly higher than the long-term average of 66% but significantly lower than the beat rate of 76% over the previous four quarters.
According to Refinitiv, analysts now anticipate a 2.9% year-over-year decline in total S&P 500 earnings, compared to a 1.6% annual decline on January 1.
The Nasdaq Composite gained 133.41 points, or 1.16 percent, to 11,645.82, the S&P 500 gained 18.1 points, or 0.45 percent, and the Dow Jones Industrial Average gained 81.28 points, or 0.24 percent, to 34,030.69.
Consumer discretionary led the S&P 500’s 11 major industries in terms of percentage gains, while energy experienced the largest percentage losses.
Intel Corporation (NASDAQ: After the chipmaker provided dire earnings projections, INTC) fell 7.1%.
Chevron Corporation CVX) made a record profit in 2022, but its earnings in the fourth quarter fell short of expectations, sending the stock down 4.1%.
American Express Co., a competitor in the payment industry AXP), as well as Visa Inc. Concerns regarding waning consumer demand were allayed when V) reported results that defied consensus. Their stock prices increased by 3% and 11.5 percent, respectively.
Inc. of Bed Bath & Beyond (NASDAQ: After falling 22.2% on Thursday as a result of JPMorgan’s (NYSE: BBBY) bankruptcy, the stock briefly recovered and gained 4.2%. JPMorgan) issuing a notice of loan default.
A number of high-profile earnings reports are anticipated next week, particularly from Apple Inc. (NASDAQ: NASDAQ: AAPL), and Amazon.com Alphabet (NASDAQ: AMZN) Meta Platforms and GOOGL) Inc., among others
On the NYSE, advancing issues outnumbered declining ones 1.54 to 1; Advancers were favored by a ratio of 1.49 to 1 on Nasdaq.
There were no new 52-week lows for the S&P 500; 80 new highs and 29 new lows were recorded by the Nasdaq Composite.
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