U.S. Stock Market Mixed; Zoom Beats Estimates; Treasury Yields & PCE Price Index Rise

U.S. stocks traded mixed on Tuesday, with the Dow Jones Industrial Average (DJIA) down 181 points, or 0.6%.^[0] The S&P 500 index (SPX) was off 0.1%, while the Nasdaq Composite Index (COMP) was 0.3% higher.^[0] The focus was on inflation that remains hard to tame, reigniting concerns about the potential need for more restrictive monetary policies.^[0]

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.^[1] 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.^[2] 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.^[2] 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.^[3]

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.^[4] 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.”^[5]

The latest news & analysis showed the S&P 500 Index (0S&P5) fell -0.32% to 3,969.69.^[6] 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.^[7] Gold Futures increased by 0.2%, bringing the^[8]

Target (TGT), a major retailer, saw an increase in its share price after surpassing its projected comparable sales.^[2] The Personal Consumption Expenditures (PCE) price index, the Fed's preferred assessment of how quickly prices are rising across the economy, rose 0.^[9]

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