U.S. Stock Market Gains as Roblox and Airbnb Surge; CPI and Retail Sales Beat Estimates
By The U.S. stock market posted gains on Wednesday, with the Dow Jones Industrial Average leading the way up 0.4%. The S&P 500 inched up 0.1%, while the Nasdaq Composite lost 0.7%.[0] The small-cap Russell 2000 was ahead 0.2%.[1] Among active stocks, Roblox (RBLX) surged 25% after the video game platform revealed better-than-expected bookings data for Q4.[2] The consumer price index (CPI) came in higher than expected at 6.4% year-over-year, although the monthly rise of 0.5% was in line.[3] Core inflation for the 12 months ending in January was higher than anticipated, reaching 5.6%, compared to the predicted 5.4%.[4]
Retail sales last month experienced a 3% increase, surpassing economists' expectation of a 1.8% rise.[1] U.S. GDP's retail sales control group increased by 1.7%, much higher than the expected 0.8% growth.[5] Brent crude futures fell by 0.3%, trading at $85.08 per barrel.[6] The yield on the benchmark 10-year Treasury note ticked down to 3.78% Thursday morning. The dollar index dropped by approximately 0.3%, bringing it to the rate of $103.65[6]
Tuesday night saw ABNB (Airbnb) jump 13.4% after they announced their Q4 sales, earnings and first annual profit all exceeded expectations.[7] Q1 guidance from the short-term rental platform was positive, but they cautioned about potential price reductions ahead.[7] The stock opened with a higher price than the 121.50 entry point of a cup-with-handle base.[7] On Thursday morning, the stock of Roku (ROKU) experienced an increase after the company reported net revenue of $867.1 million, which exceeded the anticipated $804.5 million.[8] Analysts had expected a fourth-quarter loss per share of $1.74, but the actual figure came in slightly lower at $1.70.[6]
Shares of Devon Energy (NYSE:DVN) dropped 11% following the release of the company's fourth-quarter results, which were below expectations. Additionally, Devon Energy projected capital expenditure of between $3.6 billion and $3.8 billion, surpassing the projected $3.42 billion.[7] The return on the 10-year Treasury note dropped 3 basis points to 3.71%.
0. “Stock Market Closed Mixed; Nasdaq Broke Its Winning Streak” Investor's Business Daily, 10 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/stock-market-on-track-for-a-down-week-medical-device-stock-shines
1. “S&P 500, Dow turn positive on retail sales, CPI data fallout; Nasdaq enjoys third-straight winning day” Proactive Investors USA, 15 Feb. 2023, https://www.proactiveinvestors.com/companies/news/1006250/s-p-500-dow-turn-positive-on-retail-sales-cpi-data-fallout-nasdaq-enjoys-third-straight-winning-day-1006250.html
2. “Dow, Nasdaq, S&P 500 overcome lingering Fed fears to end choppy session higher” Seeking Alpha, 15 Feb. 2023, https://seekingalpha.com/news/3936612-dow-nasdaq-sp-500-end-higher-despite-choppy-trading-as-fed-fears-linger
3. “Dow Jumps Over 300 Points, Dollar Surges in Midday Trading” msnNOW, 13 Feb. 2023, https://www.msn.com/en-us/money/markets/dow-jumps-over-300-points-dollar-surges-in-midday-trading/ar-AA17radT
4. “Before the Bell: Tesla Drives Nasdaq, Soros Drives Tesla and Buffett Dumps TSMC” 24/7 Wall St., 15 Feb. 2023, https://247wallst.com/investing/2023/02/15/before-the-bell-tesla-drives-nasdaq-soros-drives-tesla-and-buffett-dumps-tsmc
5. “Stock market today: Dow ekes out win after cutting losses as tech reigns supreme By Investing.com” Investing.com, 15 Feb. 2023, https://www.investing.com/news/stock-market-news/stock-market-today-dow-ekes-out-win-after-cutting-losses-as-tech-reigns-supreme-3004599
6. “Stock market news today: Stock futures waver, bitcoin rallies” Yahoo News, 16 Feb. 2023, https://news.yahoo.com/stock-market-news-live-updates-february-16-2023-122740853.html
7. “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/
8. “US Stocks' Resilience Faces Test As Traders Await Flurry Of Economic Data: Fed May ‘Surprise To The Upside' On …” Investing.com UK, 16 Feb. 2023, https://uk.investing.com/news/stock-market-news/us-stocks-resilience-faces-test-as-traders-await-flurry-of-economic-data-fed-may-surprise-to-the-upside-on-rates-again-in-2023-says-analyst-2917380
