Mixed U.S. Stock Performance as Fed Rate Hikes Loom; Salesforce and Okta Surge, Tesla Slumps
By U.S. stocks were mixed on Thursday as traders continued to mull the prospect of higher interest rates and investors digested the latest economic data and corporate earnings reports.[0] The Dow Jones Industrial Average (DJIA) inched higher, while the S&P 500 (SPX) and Nasdaq Composite (COMP.IND) both declined.[1]
The 10-year Treasury yield rose 8 basis points to 4.08%, topping 4% yesterday for the first time since November.[0] Yesterday, the 2-year yield (US2Y) rose by 4 basis points to a post-2007 high of 4.93%.[2]
Shares of Salesforce (NYSE:CRM) skyrocketed by more than 15% following the company’s release of higher-than-anticipated fourth quarter results and guidance. The company’s CEO, Marc Benioff, is aiming to increase profits in order to counter the pressure brought on by a number of activist investors.[3]
Meanwhile, Novavax (NVAX (opens in new tab)) plunged 25.9% after the vaccine maker said that although it has enough cash for the next 12 months or so, “substantial doubt exists regarding our ability to continue as a going concern through one year.”[4] The firm revealed a greater-than-anticipated deficit in its fourth quarter and also came up short on its top-line revenue.[5]
Tesla (NASDAQ:TSLA), following an investor day event during which Chief Executive Elon Musk gave little information about the launch of a much anticipated cost-effective electric vehicle, saw its stock drop 8.15%.[6]
Pre-market trading saw Okta Inc (OKTA) soar more than 13% after the company announced positive Q4 results and provided a robust Q1 guidance.[3]
The Federal Reserve is expected to hike interest rates at least two more times to the 5% level, but further increases could be possible.[7]
In commodities, crude oil rose 0.6% to $78.12 a barrel, while the Brent contract rose 0.5% to $84.74.[8] Gold futures fell 0.2% to $1,842.15/oz.[9]
Asian markets ended the trading session down, as investors anticipate a potentially larger interest rate hike from the U.S. Federal Reserve.[10] The Hang Seng in Hong Kong, the Shanghai Composite in China, and the Shenzhen Component in China all finished lower, at -0.92%, -0.05%, and -0.33%, respectively.[1]
0. “US stocks trade mixed as inflation concerns keep traders on edge over higher rates” msnNOW, 2 Mar. 2023, https://www.msn.com/en-us/money/markets/us-stocks-trade-mixed-as-inflation-concerns-keep-traders-on-edge-over-higher-rates/ar-AA188Jks
1. “Stock Market News Today: Stocks Mixed after Jobless Claims Data” TipRanks, 2 Mar. 2023, https://www.tipranks.com/news/stock-market-news-today-futures-remain-volatile-as-yields-climb-higher
2. “Nasdaq, S&P slide on wage inflation worries, Dow bucks trend (SP500)” Seeking Alpha, 2 Mar. 2023, https://seekingalpha.com/news/3943100-nasdaq-sp500-dow-jones-stock-market-interest-rates
3. “Stocks Mixed Before The Open As Bond Yields Tick Higher On Fed Concerns, ECB Minutes In Focus” Barchart, 2 Mar. 2023, https://www.barchart.com/story/news/14699726/stocks-mixed-before-the-open-as-bond-yields-tick-higher-on-fed-concerns-ecb-minutes-in-focus
4. “Stock market news today: Fears of high interest rates hit investors” Markets Insider, 1 Mar. 2023, https://markets.businessinsider.com/news/stocks/stock-market-news-today-investors-fear-high-interest-rates-fed-2023-3
5. “Stock Market Today: Stocks Struggle to Start March” Kiplinger’s Personal Finance, 1 Mar. 2023, https://www.kiplinger.com/investing/stocks/stock-market-today-030123-stocks-struggle-to-start-march
6. “Macy’s, Salesforce and Okta rise premarket; Silvergate, Tesla fall By Investing.com” Investing.com, 2 Mar. 2023, https://www.investing.com/news/stock-market-news/macys-salesforce-and-okta-rise-premarket-silvergate-tesla-fall-3020301
7. “Stocks Post Subpar February Amid Fears Of Higher Interest Rates And Weak Earnings” Forbes, 28 Feb. 2023, https://www.forbes.com/sites/dereksaul/2023/02/28/stocks-post-subpar-february-amid-fears-of-higher-interest-rates-and-weak-earnings
8. “Dow Jones Futures Rise: Tesla, EV Chip Plays Tumble After Investor Day; Salesforce Stock Soars | Investor’s Business …” Investor’s Business Daily, 2 Mar. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-tesla-investor-day-tsla-stock-salesforce-stock-soars
9. “Dow futures up 70 pts; jobless claims, retail earnings in focus By Investing.com” Investing.com, 2 Mar. 2023, https://www.investing.com/news/stock-market-news/dow-futures-up-70-pts-jobless-claims-retail-earnings-in-focus-3020141
10. “Resilient Stocks Look To Break Free As Nasdaq, S&P 500 Futures Climb: Brace For More Volatility, Sideways” Benzinga, 1 Mar. 2023, https://www.benzinga.com/news/earnings/23/03/31117635/resilient-stocks-look-to-break-free-as-nasdaq-s-p-500-futures-climb-brace-for-more-volatility-sidew
