Mixed Day for U.S. Stocks as Fed Hints at More Rate Hikes
By U.S. stocks finished mixed Friday as investors weighed hawkish comments from Federal Reserve officials about the potential for additional rate hikes to keep inflation in check.[0] The S&P 500 (^GSPC) dropped 0.25%, the Dow Jones Industrial Average (^DJI) fell 0.23%, or 9 points, and the Nasdaq Composite (^IXIC) declined by 0.5%.[1]
In single-stock news, DraftKings (NASDAQ:DKNG) shares jumped 16.6% after the gambling company reported a smaller-than-expected loss in the quarter and raised its outlook for 2023.[2] Deere & Company (DE) also climbed after the agricultural machinery giant beat expectations, with $11.4 billion in equipment sales, and earnings of $6.55 a share.[3] Projections for the company's net income in 2023 range from $8.75 billion to $9.25 billion.[4]
DoorDash (NYSE:DASH) shares dipped 7.7% after the company reported a 40% revenue jump to $1.8 billion compared to the prior year.[5] Orders totaled 467 million, a rise of 27% from the preceding year.[4] The delivery service corporation declared a stock repurchase plan and forecasted a positive outlook for the present quarter.[4]
Roku (ROKU) stock rose 11.2% after the streaming company reported a slimmer-than-expected fourth-quarter loss of $1.70 per share on higher-than-anticipated revenue of $867 million.[6] The firm indicated that active users and streaming hours had increased from the prior quarter.[7]
ADI (Analog Devices) surged by 7.5% with high trading volume following the announcement of results above expectation in its fiscal Q1 revenue and profit.[6] The stock of the semiconductor company surged past the 5% buy threshold of a cup base, which had a 180.05 buy point.[8]
Meanwhile, the yield on the benchmark 10-year U.S. Treasury note rose to 3.867% Thursday midday.[9] The US dollar index rose slightly, amounting to a 0.09% increase, and was valued at $104[10] The price of WTI crude oil dropped to $78.03 per barrel, resulting in a decrease in energy trading.[11]
At a speech in Tennessee on Friday morning, Federal Governor Michelle Bowman voiced her apprehension that inflation has not decreased at a fast enough rate, thus necessitating the Federal Reserve to continue to raise interest rates.[2]
0. “Nasdaq, S&P, Dow on track to end mixed, but well off their session lows” Seeking Alpha, 17 Feb. 2023, https://seekingalpha.com/news/3937764-nasdaq-sp500-dow-jones-stock-market-fed-rate-hikes-earnings
1. “S&P 500 off lows but remains under pressure as rate-hike fears dent tech By Investing.com” Investing.com, 17 Feb. 2023, https://www.investing.com/news/stock-market-news/sp-500-off-lows-but-remains-under-pressure-as-ratehike-fears-dent-tech-3007413
2. “U.S. stocks end mixed, Dow books longest weekly losing streak since September as traders bet on more Fed rate hikes” MarketWatch, 17 Feb. 2023, https://www.marketwatch.com/story/u-s-stock-futures-point-to-further-losses-on-fed-rate-hike-jitters-bfd51efc
3. “Central Bank Comments on Tighter Monetary Policy Weighs on Stocks” Barchart, 17 Feb. 2023, https://www.barchart.com/story/news/14311438/central-bank-comments-on-tighter-monetary-policy-weighs-on-stocks
4. “Stock market news today: S&P 500, Nasdaq slip amid hawkish Fed, sticky inflation signs” Yahoo Money, 17 Feb. 2023, https://money.yahoo.com/stock-market-news-live-updates-february-17-2023-124607352.html
5. “Stock Market Today: Stocks Close Mostly Lower Amid Rate-Hike Worries” Kiplinger's Personal Finance, 17 Feb. 2023, https://www.kiplinger.com/investing/stocks/stock-market-today-021723-stocks-close-lower-amid-rate-hike-worries
6. “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
7. “Stock Market Today: Hot Inflation Data Sends Stocks Lower” Kiplinger's Personal Finance, 16 Feb. 2023, https://www.kiplinger.com/investing/stocks/stock-market-today-021623-hot-inflation-data-sends-stocks-lower
8. “Stock Market Indexes Pull Ahead In Final Hour; Etsy Posts Over 6% Gain” Investor's Business Daily, 15 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/the-stock-market-climbs-out-of-morning-hole-stock-soars/
9. “Dow Jones Dives Amid Inflation Data Surprise; Elon Musk Offers This Defense Amid Big Tesla Recall” Investor's Business Daily, 16 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-falls-amid-inflation-data-surprise-elon-musk-lashes-out-amid-big-tesla-recall-tesla-stock-tsla-stock-microsoft-stock-ai-chatgpt/
10. “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
11. “U.S. stocks are mixed after Fed officials stoke rate fears By Investing.com” Investing.com, 17 Feb. 2023, https://www.investing.com/news/stock-market-news/us-stocks-are-falling-after-fed-officials-stoke-rate-fears-3007153
