{"id":1406,"date":"2023-02-24T20:03:18","date_gmt":"2023-02-25T01:03:18","guid":{"rendered":"https:\/\/embarrdowns.com\/u-s-stocks-open-lower-as-inflation-data-surpasses-expectations-and-carvana-plunges-20-5\/"},"modified":"2023-02-24T20:03:19","modified_gmt":"2023-02-25T01:03:19","slug":"u-s-stocks-open-lower-as-inflation-data-surpasses-expectations-and-carvana-plunges-20-5","status":"publish","type":"post","link":"https:\/\/embarrdowns.com\/u-s-stocks-open-lower-as-inflation-data-surpasses-expectations-and-carvana-plunges-20-5\/","title":{"rendered":"U.S. Stocks Open Lower as Inflation Data Surpasses Expectations and Carvana Plunges 20.5%"},"content":{"rendered":"

U.S. stocks opened sharply lower on Friday as investors reacted to hotter-than-expected inflation data from the Federal Reserve\u2019s preferred gauge.[0]<\/a><\/sup> The Personal Consumption Expenditures (PCE) price index rose 0.6% in January for a year-over-year rate of 5.4%.[1]<\/a><\/sup> Core PCE prices, which exclude food and energy, increased 0.6% in January, rising 4.7% from a year ago.[2]<\/a><\/sup> At 9:47 a.m., the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) had respectively declined by 1.9%, 1.6%, and 1.4[3]<\/a><\/sup> <\/p>\n

Separate data showed the University of Michigan’s consumer sentiment index rose 3% from January to February to 67, confirming a previously released preliminary report.[4]<\/a><\/sup> The report stated that the rise was a result of “improvement in the short-run economic outlook,”, however consumers still “continued to exhibit considerable uncertainty over short-run inflation.”.[5]<\/a><\/sup><\/p>\n

At 10 a.m., traders will be anticipating the release of new home sales data.[6]<\/a><\/sup> According to a poll of economists conducted by the Dow Jones, it is expected that new home sales have increased by 0.6% in January.[6]<\/a><\/sup> The previous month saw a 2.3% increase, which is a lower rise than this one.[6]<\/a><\/sup><\/p>\n

In single-stock news, Carvana (CVNA) plummeted 20.5% after the online auto dealer reported a sharp year-over-year decline in units sold (-23%) and revenue (-24%) in Q4.[7]<\/a><\/sup> The CVNA stated that it will be able to decrease operating costs by one billion dollars by the end of the 2nd quarter, without any personnel reductions.[5]<\/a><\/sup> “We expect these expense reductions to be broad-based across all large SG&A expense components, but importantly, we do not expect a reduction-in-force to be part of this plan,” Carvana said in a letter to shareholders.[5]<\/a><\/sup><\/p>\n

Prior to the start of the market, Adobe (ADBE) experienced a decrease of more than 3% in its stock prices after Bloomberg News reported that the U.S. Justice Department is set to launch an antitrust lawsuit in order to halt the company’s takeover of Figma.[7]<\/a><\/sup> In pre-market trading, Moderna (MRNA) saw a decline of more than 2% following SVB Securities’ downgrade of the stock from ‘market perform’ to ‘underperform’.[8]<\/a><\/sup> Autodesk (ADSK) experienced a decrease of over 4% in pre-market trading following a prediction of 2024 billings to be between $5.03 billion and $5.[9]<\/a><\/sup><\/p>\n

0. <\/span>“US stocks open sharply lower. Yields sharply higher” ForexLive, 24 Feb. 2023, https:\/\/www.forexlive.com\/technical-analysis\/us-stocks-open-sharply-lower-20230224\/<\/a><\/a><\/p>\n

1. <\/span>“Dow Jones Dives 500 Points On Hot Inflation Report; Tesla Stock Skids Below $200” Investor’s Business Daily, 24 Feb. 2023, https:\/\/www.investors.com\/market-trend\/stock-market-today\/dow-jones-futures-fall-200-points-ahead-of-key-inflation-report\/<\/a><\/a><\/p>\n

2. <\/span>“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<\/a><\/a><\/p>\n

3. <\/span>“Stock market news today: Dow falls 349 points after hot inflation data” Markets Insider, 24 Feb. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/stock-market-news-inflation-data-pce-fed-interest-rates-economy-2023-2<\/a><\/a><\/p>\n

4. <\/span>“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<\/a><\/a><\/p>\n

5. <\/span>“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<\/a><\/a><\/p>\n

6. <\/span>“Stocks close lower Friday after hot inflation report; major averages log worst week in 2023: Live updates” CNBC, 24 Feb. 2023, https:\/\/www.cnbc.com\/2023\/02\/23\/stock-market-today-live-updates.html<\/a><\/a><\/p>\n

7. <\/span>“S&P 500 set for biggest weekly loss this year as hot inflation stokes Fed fears By Investing.com” Investing.com, 24 Feb. 2023, https:\/\/www.investing.com\/news\/stock-market-news\/sp-500-on-track-for-worst-loss-this-year-as-redhot-inflation-stokes-fed-fears-3014423<\/a><\/a><\/p>\n

8. <\/span>“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<\/a><\/a><\/p>\n

9. <\/span>“Markets Today: Stock Indexes Fall as PCE Inflation Accelerates” Barchart, 24 Feb. 2023, https:\/\/www.barchart.com\/story\/news\/14522916\/markets-today-stock-indexes-fall-as-pce-inflation-accelerates<\/a><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

U.S. stocks opened sharply lower on Friday as investors reacted to hotter-than-expected inflation data from the Federal Reserve\u2019s preferred gauge.[0]<\/a><\/sup> The Personal Consumption Expenditures (PCE) price index rose 0.6% in January for a year-over-year rate of 5.4%.[1]<\/a><\/sup> Core PCE prices, which exclude food and energy, increased 0.6% in January, rising 4.7% from a year ago.[2]<\/a><\/sup> At 9:47 a.m., the Nasdaq 100 (NDX), S&P 500 (SPX), and Dow Jones Industrial Average (DJIA) had respectively declined by 1.9%, 1.6%, and 1.4[3]<\/a><\/sup> <\/p>\n

Separate data showed the University of Michigan’s consumer sentiment index rose 3% from January to February to 67, confirming a previously released preliminary report.[4]<\/a><\/sup> The report stated that the rise was a result of “improvement in the short-run economic outlook,”, however consumers still “continued to exhibit considerable uncertainty over short-run inflation.”.[5]<\/a><\/sup><\/p>\n

At 10 a.m., traders will be anticipating the release of new home sales data.[6]<\/a><\/sup> According to a poll of economists conducted by the Dow Jones, it is expected that new home sales have increased by 0.6% in January.[6]<\/a><\/sup> The previous month saw a 2.3% increase, which is a lower rise than this one.[6]<\/a><\/sup><\/p>\n

In single-stock news, Carvana (CVNA) plummeted 20.5% after the online auto dealer reported a sharp year-over-year decline in units sold (-23%) and revenue (-24%) in Q4.[7]<\/a><\/sup> The CVNA stated that it will be able to decrease operating costs by one billion dollars by the end of the 2nd quarter, without any personnel reductions.[5]<\/a><\/sup> “We expect these expense reductions to be broad-based across all large SG&A expense components, but importantly, we do not expect a reduction-in-force to be part of this plan,” Carvana said in a letter to shareholders.[5]<\/a><\/sup><\/p>\n

Prior to the start of the market, Adobe (ADBE) experienced a decrease of more than 3% in its stock prices after Bloomberg News reported that the U.S. Justice Department is set to launch an antitrust lawsuit in order to halt the company’s takeover of Figma.[7]<\/a><\/sup> In pre-market trading, Moderna (MRNA) saw a decline of more than 2% following SVB Securities’ downgrade of the stock from ‘market perform’ to ‘underperform’.[8]<\/a><\/sup> Autodesk (ADSK) experienced a decrease of over 4% in pre-market trading following a prediction of 2024 billings to be between $5.03 billion and $5.[9]<\/a><\/sup><\/p>\n

0. <\/span>“US stocks open sharply lower. Yields sharply higher” ForexLive, 24 Feb. 2023, https:\/\/www.forexlive.com\/technical-analysis\/us-stocks-open-sharply-lower-20230224\/<\/a><\/a><\/p>\n

1. <\/span>“Dow Jones Dives 500 Points On Hot Inflation Report; Tesla Stock Skids Below $200” Investor’s Business Daily, 24 Feb. 2023, https:\/\/www.investors.com\/market-trend\/stock-market-today\/dow-jones-futures-fall-200-points-ahead-of-key-inflation-report\/<\/a><\/a><\/p>\n

2. <\/span>“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<\/a><\/a><\/p>\n

3. <\/span>“Stock market news today: Dow falls 349 points after hot inflation data” Markets Insider, 24 Feb. 2023, https:\/\/markets.businessinsider.com\/news\/stocks\/stock-market-news-inflation-data-pce-fed-interest-rates-economy-2023-2<\/a><\/a><\/p>\n

4. <\/span>“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<\/a><\/a><\/p>\n

5. <\/span>“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<\/a><\/a><\/p>\n

6. <\/span>“Stocks close lower Friday after hot inflation report; major averages log worst week in 2023: Live updates” CNBC, 24 Feb. 2023, https:\/\/www.cnbc.com\/2023\/02\/23\/stock-market-today-live-updates.html<\/a><\/a><\/p>\n

7. <\/span>“S&P 500 set for biggest weekly loss this year as hot inflation stokes Fed fears By Investing.com” Investing.com, 24 Feb. 2023, https:\/\/www.investing.com\/news\/stock-market-news\/sp-500-on-track-for-worst-loss-this-year-as-redhot-inflation-stokes-fed-fears-3014423<\/a><\/a><\/p>\n

8. <\/span>“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<\/a><\/a><\/p>\n

9. <\/span>“Markets Today: Stock Indexes Fall as PCE Inflation Accelerates” Barchart, 24 Feb. 2023, https:\/\/www.barchart.com\/story\/news\/14522916\/markets-today-stock-indexes-fall-as-pce-inflation-accelerates<\/a><\/a><\/p>\n","protected":false},"author":3,"featured_media":1405,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[47],"tags":[],"_links":{"self":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1406"}],"collection":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/comments?post=1406"}],"version-history":[{"count":0,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/posts\/1406\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media\/1405"}],"wp:attachment":[{"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/media?parent=1406"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/categories?post=1406"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/embarrdowns.com\/wp-json\/wp\/v2\/tags?post=1406"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}