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    Stocks Drop as Fed Chairman Powell Speaks on Interest Rates; Uber, Alphabet & Chipotle Earnings in Focus


    Stocks fell Wednesday as investors focused on Fed Chairman Jerome Powell’s remarks about the trajectory of interest rates.[0] The Dow Jones Industrial Average lost 0.6% while the S&P 500 dropped 1.1% and the Nasdaq Composite retreated 1.7%.[1] [2]

    Uber Technologies (UBER) climbed more than +6% in pre-market trading after reporting Q4 revenue of $8.61 billion, stronger than the consensus of $8.47 billion.[3] Meanwhile, Alphabet (GOOGL) plunged 7.7% following a mishap at its AI event to demonstrate its new chatbot, Bard.[4] In its initial presentation, the bot encountered an error.[5] [5]

    Cybersecurity company Fortinet Inc. (FTNT) rallied over 11% in premarket trading following its fourth-quarter beat.[6] Fortinet (FTNT) surged 12% in high trading volume, breaking the 200-day moving average.[4] Since May 7, 2020, Fortinet has enjoyed its most successful day with a 21% surge in its stock[7]

    After releasing its Q4 earnings per share which exceeded expectations, CME Group (CME) experienced a 5.4% increase in its stock.[4] According to Dow Jones Market Data, the stock closed near its biggest surge since it rose 5.9% on April 27, 2022.[5]

    Chipotle Mexican Grill (CMG) experienced a drop of over -3% after revealing that their Q4 comparable same-store sales went up by +5.60%, far lower than the estimated +7.04%.[8]

    The Federal Reserve is expected to raise the fed funds rate by a smaller quarter points each at the March and May meetings.[6] However, data will determine the final decision.[6] Traders projected a 68.8% probability that the rate will peak at 5-5.25% by May, followed by at least 25 basis points of cuts by the end of 2023, according to the CME’s FedWatch tool.[9]

    Jerome Powell, Chairman of the Federal Reserve, is set to address the Economic Club of Washington on Tuesday.[10] So far, 63% of S&P 500 companies have reported fourth-quarter earnings, with 69.5% beating analyst expectations.[11] The yield on the 10-year Treasury rose 10 basis points to 3.63%.[12]

    0. “Stocks Fall as Investors Keep Eye on Path of Interest Rates” The Wall Street Journal, 8 Feb. 2023,

    1. “Dow futures trade lower, earnings in focus By”, 5 Feb. 2023,

    2. “Futures Rise, Disney Jumps; Why This Pullback Looks Healthy” Investor's Business Daily, 9 Feb. 2023,

    3. “Markets Today: Stocks Fall on Mixed Corporate Earnings Results” Barchart, 8 Feb. 2023,

    4. “Stocks Fall Back on Mixed Earnings and Higher Bond Yields” Barchart, 8 Feb. 2023,

    5. “Stock Market Closed Near Day's Lows; Pure Barre Parent Gaps Down Sharply” Investor's Business Daily, 8 Feb. 2023,

    6. “Nasdaq, S&P Futures Dip As Fed's Data-Dependency Introduces Caution – Invesco QQQ Trust, Series 1 (NASDAQ” Benzinga, 8 Feb. 2023,

    7. “Stock Market Losses Widen At Midday; Alphabet Tumbles On Chatbot Blunder” Investor's Business Daily, 8 Feb. 2023,

    8. “Stock Market News Today: GOOG and Tech Selloff Lead Stocks Lower” TipRanks, 8 Feb. 2023,

    9. “Dow ends down 200 points, Nasdaq falls 1.7% after Fed officials say more interest rate hikes could be needed to cool …” msnNOW, 8 Feb. 2023,

    10. “Counter Moves, Powell's Speech, Russia Deficit, Microsoft and Google's AI Rumble” RealMoney, 7 Feb. 2023,

    11. “Dow futures jump 200 points as investors evaluate latest batch of earnings” CNBC, 9 Feb. 2023,

    12. “Stock Market News Today: Yields Jump Ahead of Speech From Fed's Powell” Markets Insider, 6 Feb. 2023,

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