U.S. stocks opened slightly higher on Friday following the release of Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) price index.[0] The index rose 0.6% in January for a year-over-year rate of 5.4%, while the core PCE prices, which exclude food and energy, increased 0.6%, rising 4.7% from a year ago.[0] The surprisingly high reading has reignited concerns on Wall Street that the Federal Reserve may need to take more restrictive monetary policies than earlier expected.
In the fixed income markets, yields were mixed.[1] The 10-year Treasury yield (US10Y) was down 3 basis points to 3.92%, while the 2-year yield (US2Y) was also down 3 basis points to 4.78%.[2] Separate data showed the University of Michigan’s consumer sentiment index rose 3% from January to February to 67.[3]
Zoom (ZM) saw a rise in share prices after announcing its fourth quarter earnings, which were $1.22 per share – higher than the anticipated 80 cents.[4] Income totaled $1.12 billion.[5] Dow Jones Stocks and Dow Jones Products were slightly lower.
Turning to the housing market, home prices fell 0.5% in December according to data from S&P Corelogic Case-Shiller Index, while the FHFA house price index for December dipped 0.1%.[6]
Oil rose, with Crude Oil WTI Futures up 2.1% to $77.27 a barrel and Brent Oil Futures up 1.7% to $83.38 a barrel.[7] Gold Futures increased by 0.2%, closing at[8]
Shares of Tesla (TSLA) dropped slightly around 1% after Mexico’s president affirmed that the electric vehicle manufacturer would construct a new facility in Monterrey, Mexico.[5] Shares of Norwegian Cruise Line (NCLH) plummeted after their earnings report revealed a larger-than-anticipated deficit and a discouraging outlook for 2023, as the cruise company is under pressure from escalating fuel and labor expenses.[5] Shares of Target (TGT) rose after the retail giant exceeded expectations for comparable sales.[8] Nvidia’s (NVDA) earnings exceeded expectations of Wall Street, however, the chip giant’s revenue was significantly lower than the same period last year, as anticipated.[9]
0. “U.S. stocks open sharply lower after hotter-than-expected inflation reading” MarketWatch, 24 Feb. 2023, https://www.marketwatch.com/story/u-s-stocks-open-sharply-lower-after-hotter-than-expected-inflation-reading-b88521c8
1. “Nasdaq, S&P, Dow bounce back after suffering their worst weekly loss in 2023” Seeking Alpha, 27 Feb. 2023, https://seekingalpha.com/news/3941181-nasdaq-sp500-dow-jones-stock-market-fed-rates-economic-data
2. “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
3. “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
4. “Dow futures rise 70 pts; Target earnings, Goldman investor day in focus By Investing.com” Investing.com, 28 Feb. 2023, https://www.investing.com/news/stock-market-news/dow-futures-rise-70-pts-target-earnings-goldman-investor-day-in-focus-3016858
5. “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
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. “So Long, Losing Streak? Stocks, Yields Climb as Market Mulls Fed Minutes, Hot Jobs Data, GDP – Ticker Tape” The Ticker Tape, 23 Feb. 2023, https://tickertape.tdameritrade.com/market-news/so-long-losing-streak-stocks-yields-climb-as-market-mulls-fed-minutes-hot-jobs-data-gdp-19400