Wall Street Today | AI Booming Market Looks Toward Inflation Gauge
RECAP
U.S. stocks struggled for direction Tuesday as traders eyed fresh data on slipping consumer attitudes but braced for the release of the PCE, or personal consumption expenditure price index, which will be published before the market opens on Thursday.
The $S&P 500 Index (.SPX.US)$ climbed 0.17%, to 5,078. The $Dow Jones Industrial Average (.DJI.US)$ dropped 0.25%, to 38,972. The $Nasdaq Composite Index (.IXIC.US)$ gained, or 0.37%, to 16,035.
Any notable uptick in the gauge Thursday may finally kill off any lingering hopes of a Fed rate cut in May. After the rally late last week off Nvidia earnings and their market implications, the action has been sideways for a couple of days, according to Art Hogan, chief market strategist at B. Riley Wealth Management.
"I think it's more a wait-and-see environment than a risk-on or risk-off environment," Hogan said in a phone interview.
The cautious tone also comes as investors eye economic data in coming sessions that may clarify the timing of Federal Reserve interest rate cuts.
"Monday brought little color as market participants observed a familiar landscape, with traders and investors bracing for a busy data calendar, and the update on the Fed's preferred price gauge (PCE) is of keen interest," said Stephen Innes, managing partner at SPI Asset Management.
MACRO
Consumer Confidence Drops in February
According to the Conference Board, the Confidence Index dipped to 106.7 in February compared to the expected 115. It looks like the new year did not bring the confidence breakout expected, as Feb. data showed a break in a three-month uptrend in the index.
"The decline in consumer confidence in February interrupted a three-month rise, reflecting persistent uncertainty about the US economy," Dana Peterson, chief economist at The Conference Board, said.
She added that all income groups felt the decline except those earning less than $15K and those earning more than $125K.
SECTORS
Bitcoin Tops $57,000, Lifting Crypto-Related Stocks Higher
Bitcoin rose above $57,000 on Monday to its highest level since November 2021, as exchange-traded funds investing directly in the cryptocurrency attract more capital into the space while investors await the upcoming "halving" event, which has historically been bullish for bitcoin prices.
Halving is a mechanism in the blockchain's algorithm to control the supply of Bitcoin, which has a cap of 21 million. At halvings, the reward for bitcoin mining is cut in half, meaning miners will receive 50% fewer bitcoins for verifying transactions.
Halvings are scheduled to happen after every 210,000 blocks mined or about every four years until the maximum supply of 21 million bitcoins is released. Historically, bitcoin has seen price appreciation months after halvings.
$Bitcoin (BTC.CC)$ rose almost 10% during the past 24 hours. It is roughly off 17% from its record high at $68,990, reached in November 2021.
The rally helped send shares of crypto-related stocks including $Coinbase (COIN.US)$, $MARA Holdings (MARA.US)$, $CleanSpark (CLSK.US)$ and $MicroStrategy (MSTR.US)$.
Oil Futures Closes Higher on Reuters Report OPEC+ Considering Extending Oil Cuts
$Crude Oil Futures(JAN5) (CLmain.US)$ closed up 1.42% to $78.68 a share following a report by Reuters that found OPEC+ may increase oil production cuts again in the second quarter.
Anonymous sources said the 2.2 million barrels per day cuts set in November for the first quarter of 2024 might see an extension into Q2. Under continued cuts, the cartel would have limited supply by more than 3.3 million barrels per day through April.
COMPANIES
Viking Therapeutics' Stock Climbs 83% as Investors Cheer Cheap Entry to Weight-loss Drug Craze
$Viking Therapeutics (VKTX.US)$ shares soared almost 82% after the company announced positive results in a Phase 2 trial of a GLP-1 receptor-based weight-loss drug to treat obesity and diabetes.
Macy's To Close 30% of Stores
$Macy's (M.US)$ shares were up 4.5% following an earnings beat and the announcement of a strategy to boost growth, including closing 150 stores. The new approach "challenges the status quo to create a more modern Macy's," Chief Executive Tony Spring said.
China's Li Auto Stands Apart, Gains 25% on HK Exchanges, +9% in U.S.
There was a lot to like in $Li Auto (LI.US)$'s latest earnings: record sales, a profit beat, and new models in the works. Enthusiasm for quarterly earnings and the demand outlook helped send the Chinese electric vehicle maker's stock up 25% in Hong Kong trading Tuesday, its biggest one-day price jump in history. The stock rose 9% In U.S. trading.
Lowe's Stock Raises 2.8% But Home-improvement Retailer Provides Downbeat Outlook
$Lowe's Companies (LOW.US)$ shares were 3% higher after a quarterly report from the home improvement retailer. The company beat on profit but saw a drop in sales, due to slowing do-it-yourself demand and bad weather in January. Its full-year outlook also disappointed analysts.
Warner Bros. Discovery Ceased Discussion to Aquire Paramount Global
After months of exploratory talks, $Warner Bros Discovery (WBD.US)$ has ceased discussions about acquiring $Paramount Global-B (PARA.US)$, indicating a significant shift in the merger landscape between these major media entities. Both the stock prices climbed after the reports.
SoundHound AI Rallies Another 35%+ Intraday as Market Continues to Love Nvidia-Backed Firm
$SoundHound AI (SOUN.US)$ gained more than 35% intraday in very heavy trading volume as the artificial intelligence company’s nearly 400% recent rally extended into yet another session.
Source: Bloomberg, Dow Jones, CNBC, Reuters
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102328260 : Wow... Up up up
102328260 : Hope will be $1000
OceansWave : It’s already more or less confirmed that May will have no rate cut at all.. earliest possible will be June… doubt that we will see any rate cuts early at all