Dow Hits Closing High as Market Holds On to Records | Wall Street Today

Moomoo Recap US joined discussion · Aug 28, 2024 04:14

Dow Hits Closing High as Market Holds On to Records | Wall Street Today

The market fell back Tuesday morning but leveled off Tuesday afternoon, pulling the Dow Jones Industrial Average to hit a new record closing high, up nine points for the day. It is a low volume and news day, as the market awaits $NVIDIA (NVDA.US)$ earnings Wednesday night, the PCE report on Friday, and a long holiday weekend to celebrate or despair over the results of those two events.

Just past the close, the $S&P 500 Index (.SPX.US)$ traded up 0.16%, the $Dow Jones Industrial Average (.DJI.US)$ climbed 0.02%, and the $Nasdaq Composite Index (.IXIC.US)$ traded +0.16%.

MACRO

Federal Reserve President Jerome Powell said everything short of 'we are cutting rates in September' at the Jackson Hole, WY Economic Symposium Friday, the market reacted positively, with indexes climbing right up to the shoulder of record highs.

Every sector on the S&P 500 was in the green Friday after the Fed news, but since reaching a hairs length of records, prices have stayed put in the past two trading sessions. Powell did not specify the timeline of these rate cuts, but he said he was confident the economy was on the way to 2% inflation. "The time has come to adjust, and the direction is clear," Powell said.

Though Fed Powell's speech did not highlight the timeline for rate cuts, Wednesday FOMC meeting minutes from July paint a short time frame. Members reportedly were ready to cut rates in September if everything stayed the same; some even wanted to cut rates then.

This week in macro, investors can look forward to more macroeconomic data that might inform how the FOMC will decide on rate cuts to come. CB Consumer Confidence came out Tuesday morning, showing a jump in expectations. Crude Oil Inventories and a speech from FOMC member Bostic will arrive Wednesday; Continuing and Initial Jobless claims will drop Thursday alongside updated GDP numbers for the second quarter.

Friday, we will see the release of the Person Consumption Expenditure index for July, the Fed's favorite inflation measure. Last time, the PCE came in at 2.6% year over year, the lowest since 2021. Michigan consumer expectations and confidence will also drop Friday.

SECTORS

Drug manufacturers as an industry tracked by moomoo were higher following news that $Eli Lilly and Co (LLY.US)$ will make Zepbound obesity treatments available to more customers at half the price of alternative treatments. $Hims & Hers Health (HIMS.US)$, a generic drug seller fell nearly 5%. lower.

Oil prices declined Tuesday, easing back a day after posting a more than 3% climb as concerns over the outlook for demand lingers.

The move comes a day after global benchmark crude futures settled at a two-week high on supply concerns triggered by escalating Middle East tensions and a reported halt in oil output and exports by Libya's eastern government. $Crude Oil Futures(APR5) (CLmain.US)$ fell 2.5%.

$Bitcoin (BTC.CC)$ hovered near $61k, Gold pulled back from its high. $U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ fell and the $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ climbed.

MOOVERS

Nordstrom $Nordstrom (JWN.US)$ reported quarterly earnings of $0.96 per share, beating the analyst consensus estimate of $0.71 by 35.21 percent. The firm gave positive guidance as well, which pushed the stock 10% higher after hours.

$Paramount Global-B (PARA.US)$ fell 7%, the lowest decliner on the S&P 500 after potential buyer Edgar Bronfman JR. dropped his bid to buy the firm's parent company, National Amusements. National Amusements became up for sale after Skydance Media, the production house behind Mission Impossible and Top Gun 2, said they were interested. However, the board reviewed an alternative $6B proposal from Bronfman.

Insulet $Insulet (PODD.US)$ climbed 6.5%, the highest advancer on the S&P 500 after the firm said late Monday that the US Food and Drug Administration has cleared its Omnipod 5 automated insulin delivery system for adults with type 2 diabetes.

$Super Micro Computer (SMCI.US)$ is seeing heavy put options trading as a short-seller report from Hindenburg Research sent the stock of the server maker tumbling as much as 8% before the shares pared their declines.

PPD stock fell for a second day Tuesday after the firm posted earnings Monday, which sent the stock $PDD Holdings (PDD.US)$ reeling 28%. The retail firm reported a bleak outlook and even said the firm's high revenue growth and profit are at an end. On the news, options contracts on the underlying stock flew, sending the stock to sixth place in the entire market for options contract trading volume on Tuesday.

$CAVA Group (CAVA.US)$ shares slumped 6% Tuesday after a regulatory filing showed its major shareholder, Artal International, sold 6 million shares of common stock.

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