Dow Slides as U.S. Data, Earnings Reports Add to Volatility
By U.S. stocks finished lower on Thursday as investors digested a slew of economic data and earnings reports. The Dow Jones Industrial Average (^DJI) fell 0.60%, or 206 points, to 33,921.15 points.[0] The tech-heavy Nasdaq Composite (^IXIC) dipped 0.90% to 11,997.40 points.[1] The benchmark S&P 500 (^GSPC) shed 0.74% to 4,122.70 points, finishing near its lows of the day.[1]
The yield on the benchmark 10-year U.S. Treasury note rose to 3.867%, while the dollar index inched higher by nearly 0.09% to trade at $104.02.[2] Prices of WTI crude oil declined, with the commodity trading at $78.03 per barrel.[3]
On Wednesday, the Commerce Department reported that retail sales saw an increase of 3% in the month of January, reversing the two prior months of decreases.[4] Tuesday's higher-than-anticipated reading of consumer prices, combined with worries that the Fed might keep increasing interest rates, has had a negative effect on stocks this week.[3]
On Wednesday, the Congressional Budget Office released a statement cautioning that the Treasury Department's capacity to continue paying its government obligations would be depleted by the summertime if Congress is unable to come to an agreement to raise the debt ceiling.[5]
On the earnings front, Twilio (TWLO) rose more than +13% in pre-market trading after the cloud communications software company reported better-than-expected Q4 results and issued strong Q1 guidance.[5]
Shares of Shopify (SHOP) dropped over 9% in pre-market trading after predicting their Q1 revenue growth to be in the high-teen percentages, lower than the estimated 20%.[6]
Pre-market trading saw a 7% decline in Paramount Global's (PARA) share prices when the company reported revenue of $8.13 billion for the fourth quarter, which was lower than the expected $8.17 billion.[7]
After the NHTSA announced Tesla (TSLA) would be recalling 362,758 vehicles due to safety issues with its Full Self-Driving (FSD) beta software, the company's shares dropped.[0]
Shares of Albemarle (ALB), the producer of lithium, have risen by more than 5% due to the company's impressive earnings result, which showed a 754% year-over-year increase in profit of $8.62[8] The revenue increased by 193%, totaling[8]
0. “S&P 500 struggles to shake off Fed hike fears as inflation remains hot By Investing.com” Investing.com, 16 Feb. 2023, https://www.investing.com/news/stock-market-news/sp-500-struggles-to-shake-off-fed-hike-fears-as-inflation-remains-hot-3006071
1. “Nasdaq, S&P, Dow slip as traders digest more inflation data; Cisco jumps on results” Seeking Alpha, 16 Feb. 2023, https://seekingalpha.com/news/3937279-nasdaq-sp500-dow-jones-stock-market-ppi-report-economic-data
2. “10- and 30-year Treasury yields hit 2023 highs after strong wholesale-prices data” MarketWatch, 16 Feb. 2023, https://www.marketwatch.com/story/treasury-yields-nudge-lower-but-sit-just-shy-of-2023-highs-d0e27b84
3. “Stock market news today: Stocks sell off after hot inflation report, hawkish Fedspeak” Yahoo Money, 16 Feb. 2023, https://money.yahoo.com/stock-market-news-live-updates-february-16-2023-122740853.html
4. “S&P Futures Tick Lower Ahead of Key U.S. PPI Data” Barchart, 16 Feb. 2023, https://www.barchart.com/story/news/14260125/s-p-futures-tick-lower-ahead-of-key-u-s-ppi-data
5. “US Stocks' Resilience Faces Test As Traders Await Flurry Of Economic Data: Fed May ‘Surprise To The Upsid” Benzinga, 16 Feb. 2023, https://www.benzinga.com/news/earnings/23/02/30938492/us-stocks-resilience-faces-test-as-traders-await-flurry-of-economic-data-fed-may-surprise-to-the-up
6. “Dow, S&P 500, Nasdaq slump as wholesale inflation stats fuel Fed concerns” Seeking Alpha, 16 Feb. 2023, https://seekingalpha.com/news/3937395-dow-sp-500-nasdaq-slump-as-wholesale-inflation-stats-fuel-fed-concerns
7. “Markets Today: Stock Index Futures Tumble as U.S. Jan PPI Exceeds Forecasts” Barchart, 16 Feb. 2023, https://www.barchart.com/story/news/14268583/markets-today-stock-index-futures-tumble-as-u-s-jan-ppi-exceeds-forecasts
8. “Dow Jones Stalls; Tesla Retooling Plans, Price Cuts; New Tax Credit Rules” Investor's Business Daily, 16 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-falls-on-signs-of-resilient-inflation-applied-materials-to-follow-ciscos-all-well-signal/
