U.S. stocks traded mixed on Tuesday, with the Dow Jones Industrial Average (DJIA) down 181 points, or 0.6%. The S&P 500 index (SPX) was off 0.1%, while the Nasdaq Composite Index (COMP) was 0.3% higher. The focus was on inflation that remains hard to tame, reigniting concerns about the potential need for more restrictive monetary policies.
Zoom (ZM) shares rose after the company released its fourth quarter earnings, which exceeded expectations with earnings per share of $1.22, surpassing the estimated 80 cents. The total revenue was $1.12 billion. Shares of Zoom Video Communications Inc (NASDAQ:ZM) increased by 0.8% after the company predicted a higher-than-expected annual profit.
In the fixed income markets, yields decreased slightly. The US10Y 10-year Treasury yield decreased 3 basis points to 3.92%. The yield of two years (US2Y) decreased by three basis points and is now at 4. In addition, the yield on the U.S. 10-Year Treasury dropped to 3.92%. The Two-Year Treasury yield is also falling, currently at 4.78%. This reduces the difference between them to -86 basis points.
Data released separately revealed that the University of Michigan's Consumer Sentiment Index increased by 3% from January to February to reach 67, verifying the initial report previously published. The report stated that the rise was due to an “improvement in the short-run economic outlook,” though consumers “continued to exhibit considerable uncertainty over short-run inflation.”
The latest news & analysis showed the S&P 500 Index (0S&P5) fell -0.32% to 3,969.69. The index is on course to drop around 4% this month. Oil rose, with Crude Oil WTI Futures up 2.1% to $77.27 a barrel, while Brent Oil Futures crude was up 1.7% to $83.38 a barrel. Gold Futures increased by 0.2%, bringing the
Target (TGT), a major retailer, saw an increase in its share price after surpassing its projected comparable sales. The Personal Consumption Expenditures (PCE) price index, the Fed's preferred assessment of how quickly prices are rising across the economy, rose 0.
0. “S&P 500, Dow trade lower in final hour Tuesday, putting stocks on pace for February losses” MarketWatch, 28 Feb. 2023, https://www.marketwatch.com/story/s-p-500-dow-trade-lower-in-final-hour-tuesday-putting-stocks-on-pace-for-february-losses-cacdb75e
1. “Stock market news today: Stocks fall as volatile month comes to close” Yahoo News, 28 Feb. 2023, https://news.yahoo.com/stock-market-news-live-updates-february-28-2023-120603661.html
2. “Nasdaq, Dow, S&P seesaw as stocks look for momentum on last day of February (SP500)” Seeking Alpha, 28 Feb. 2023, https://seekingalpha.com/news/3941896-nasdaq-sp500-dow-jones-stock-market-economic-data-feb-end
3. “Stock Market News Today: Bulls Finish Today’s Session in Control” TipRanks, 27 Feb. 2023, https://www.tipranks.com/news/stock-market-news-today-futures-recoup-from-a-dull-trading-week
4. “Stocks Tumble as Strong Economic Reports Bolster the Case for Tighter Fed Policy” Barchart, 24 Feb. 2023, https://www.barchart.com/story/news/14527214/stocks-tumble-as-strong-economic-reports-bolster-the-case-for-tighter-fed-policy
5. “Stock Market Today: Hot Inflation Data Sinks Stocks” Kiplinger's Personal Finance, 24 Feb. 2023, https://www.kiplinger.com/investing/stocks/stock-market-today-022423-hot-inflation-data-sinks-stocks
6. “Nasdaq, S&P 500 Futures Flatline Ahead Of Housing, Consumer Data: Analyst Pins Hopes On Dollar, Fed Rates To …” Benzinga, 27 Feb. 2023, https://www.benzinga.com/news/earnings/23/02/31085204/nasdaq-s-p-500-futures-flatline-ahead-of-housing-consumer-data-analyst-pins-hopes-on-dollar-fed-rat
7. “Indexes Mixed As Tesla's GigaMexico Plan Gets Green Light Ahead Of Investor Day; CHIPS Act Goes Live” Investor's Business Daily, 28 Feb. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-stalls-chip-stocks-soar-as-chips-act-goes-live-teslas-investor-day-on-deck/
8. “Stocks mixed as February on track to close on a down note By Investing.com” Investing.com, 28 Feb. 2023, https://www.investing.com/news/stock-market-news/stocks-fall-as-february-on-track-to-close-on-a-down-note-3017274
9. “Stock market news today: Stocks slide after hotter-than-expected key inflation print” Yahoo News, 24 Feb. 2023, https://news.yahoo.com/stock-market-news-today-february-24-2023-104349492.html