Wall Street Today | Slow Friday Market Sees Pull Back

Kevin Travers wrote a column · Sep 28 04:03

Wall Street Today | Slow Friday Market Sees Pull Back

The market climbed Friday after the Fed's favorite way to measure inflation came in at the lowest year-over-year increase since 2021: 2.2%. That strength was felt in the Russell 2000 and Dow Jones Industrial Average, but as tech fell and Chinese stocks pulled back their run the rest of the market felt soft.

PCE yoy change, Investing.com

Tech and material stocks pulled down the Nasdaq and S&P 500, even after the S&P 500 hit a trading and closing high Thursday.

Just past 4 pm ET the $S&P 500 Index (.SPX.US)$ traded -2 bps, the $Dow Jones Industrial Average (.DJI.US)$ climbed 0.48%, and the $Nasdaq Composite Index (.IXIC.US)$ fell 0.25%.

MACRO

In macro, PCE inflation numbers showed that prices were growing at a slower pace. The regular PCE including energy and food prices grew by just 2.2%. Core PCE grew by 2.7%, and 0.1% year over year.

Michigan consumer sentiment also dropped Friday and showed respondents thought prices would climb at a rate of 2.7% in one year. Consumer confidence about the economy rose to a five-month high.

SECTORS

Chinese stocks were still rising, after seeing their best day in years the day before. $PDD Holdings (PDD.US)$ climbed 6%, the highest on the Nasdaq 100. Like other Chinese tech stocks, the stock climbed 36% in the past five sessions. Stock moves are not as insane today, but stocks like $JD.com (JD.US)$ and $Alibaba (BABA.US)$ grew to levels not seen in a year.

Oil futures finished higher on Friday to modestly pare back their weekly loss from expectations OPEC+ will boost production before year-end. Traders also cast doubt on whether an aggressive round of monetary stimulus from China will shore up demand from the world's largest crude importer.

$Bitcoin (BTC.CC)$ hovered at $66k, Gold and silver pulled back from fresh highs. $Costco (COST.US)$ shoppers can't get enough of the discount chain's gold bars while gold keeps setting record prices, the firm said in its earnigns call. $U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ and the $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ fell.

MOOVERS

$Walgreens Boots Alliance (WBA.US)$ and pharmacy stocks climbed Friday after $Costco (COST.US)$ said its pharmacy decision had the highest sales increase as a segment and double-digit prescription growth. the news came one day after Walgreens hit its worst closing price in nearly three decades.

$Coinbase (COIN.US)$ climbed Friday alongside the price of Bitcoin.Bears are selling millions of dollars in call options at a time when the stock is outperforming its peers in the crypto world.

$Cassava Sciences (SAVA.US)$ tumbled by about 14% after the company said it agreed to pay a $40 million in monetary penalty as part of a settlement of allegations by the Securities and Exchange Commission that its reports on a clinical trial "negligently contained materially misleading statements and omissions."

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