Dow Jones Rises 0.3% Despite Cautionary Market Sentiment Ahead of DOJ Antitrust Suit Against Alphabet’s Google
On Tuesday, January 24th, 2023, the Dow Jones Industrial Average rose 0.3% to close at 33,733. The S&P 500 and the Nasdaq Composite ended with modest losses, 0.1% and 0.3%, respectively. The Russell 2000 index of small-capitalization stocks lost 0. The 10-year Treasury yield fell 4 basis points to 3.47%. Oil prices dropped 2% from their long-term peak, settling at $80.25 per barrel.
Bernstein downgraded Advanced Micro Devices (AMD) from outperform to market perform, causing the stock to drop by 3.9%. Bernstein’s downgrade of Lululemon Athletica (LULU) from market perform to underperform caused a 4% drop in the retailer’s stock. Verizon (VZ) shares slipped 1.51% after the company posted mixed results for the 2022 fourth quarter.
Yields of Treasury securities dropped significantly following the producer price inflation data, and ETFs (Exchange Traded Funds) that concentrate on Treasury securities moved up in value. The yield on the 10-year Treasury bond dropped 17 basis points to 3.37%. The US2Y two-year yield decreased 11 basis points to 4.08%. On Monday, Treasury prices decreased, resulting in the 10-year Treasury notes yield rising to 3.522% from 3.483% on Friday.
CME Group (opens in new tab) states that the market is factoring in a 0.25% rate hike for the upcoming Federal Reserve meeting, the smallest increase since March 2022. According to Gargi Chaudhuri, who serves as the head of BlackRock’s iShares Investment Strategy, Americas, the Federal Reserve is anticipated to push the interest rate up to a range between 5.0% and 5.25%, which is significantly higher than the current rate of 4.5% to 4.75%.
Amazon (AMZN) said late Tuesday it would offer a subscription services for U.S. customers offering a range of generic drugs through at-home delivery. US stock futures slipped lower ahead of the open on corporate caution. The Dow Jones Industrial Average futures lost 30 points, or 0.1%, while the S&P 500 futures lost 0.1%, and Nasdaq Composite futures fell 0.1%.
The Department of Justice joined with attorneys general in eight states in filing a civil antitrust lawsuit against Alphabet’s Google unit.
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