Stocks moved lower Friday, putting major indexes on pace to post weekly losses as the election-fueled rally that stocks to a series of record highs fizzled.
The Dow Jones Industrial Average was down 0.7%, while the S&P 500 and Nasdaq were off 1.2% and 1.9%, respectively, in recent trading. Stocks closed lower Thursday after Federal Reserve Chair Jerome Powell said that the Fed is in no hurry to lower interest rates, noting that the path toward reaching the central bank’s inflation target is bumpy.
Retail sales data released early Friday came in stronger than expected, which is good news about the economy but reinforces the idea that the Fed may not be as aggressive as some investors had hoped in cutting its benchmark rate. The yield on 10-year Treasurys, which is sensitive to expectations around where interest rates are headed, rose to 4.47% this morning from 4.42% late yesterday.
Large-cap technology stocks were mostly lower in early trading Friday. AI investor favorite Nvidia (NVDA) and Amazon (AMZN) both fell 3%, while Microsoft (MSFT), Apple (AAPL), Alphabet (GOOGL) and Meta Platforms (META) were all down more than 1.5%.
Tesla (TSLA) shares were up 3% this morning after slumping nearly 6% yesterday amid reports that President-elect Trump’s transition team is preparing plans to scrap the $7,500 electric vehicle tax credit.
Among other noteworthy movers, shares of Applied Materials (AMAT) were down 8% after the semiconductor equipment maker reported weaker-than-expected earnings. Disney (DIS) shares were up more than 3%, adding to the big gains recorded yesterday after the entertainment giant reported strong earnings and issued a rosy outlook.
Domino’s Pizza (DPZ) shares were up 2% following news that Warren Buffett’s Berkshire Hathaway (BRK.A; BRK.B) had taken a stake in the world’s largest pizza chain in the third quarter. Shares of swimming pool supplier Pool Corp. (POOL) also got a boost from news of a Buffett stake, rising 2%. Ulta Beauty (ULTA) shares were down 2% as Berkshire sold nearly all of its stake in the cosmetics chain after first entering the position in the second quarter.
Bitcoin was near $90,000, after slipping to around $87,000 late yesterday. The cryptocurrency, which hit a high of over $93,000 this week, has gained more than 30% since the election amid hopes that a supportive White House and Congress will implement policies that benefit the asset class.
Gold futures were up slightly at around $2,580 an ounce. The precious metal, which hit a record high of $2,800 early last week, has lost ground since the election as the U.S. dollar has strengthened.
Palantir Stock Surges as It Shifts Listing to Nasdaq
43 minutes ago
Palantir Technologies (PLTR) shares jumped Friday after the analytics software provider said it is shifting its listing to the Nasdaq from the New York Stock Exchange.
The company, a retail investor favorite, said it will transfer the listing of its Class A common shares to the Nasdaq Global Select Market, with trading set to start on Nov. 26. Its common shares will continue to trade under the “PLTR” symbol, it said.
“Upon transferring, Palantir anticipates meeting the eligibility requirements of the Nasdaq-100 Index,” the company said.
The Nasdaq 100 is a collection of the 100 largest, most actively traded companies listed on the Nasdaq stock exchange and its components include the world’s three largest companies by market capitalization: Apple (AAPL), Microsoft (MSFT), and Nvidia (NVDA), the lynchpin of the artificial intelligence (AI) boom.
The index is tracked by the Invesco QQQ ETF (QQQ), one of the largest and most actively traded exchange-traded funds in the U.S.
Palantir shares surged 9% Friday morning. They started 2024 at $16.58 each and are now trading around $64.80 each.
Market Less Certain That Fed Will Cut Rates Again in December
1 hr 51 min ago
Expectations that the Federal Reserve will cut interest rates again in December have fallen as data shows continued strength in the economy and after Fed Chair Jerome Powell said that the central bank would move cautiously as it eases monetary policy.
Market participants are now pricing in a 55% likelihood that the Fed will cut its benchmark rate at its policy meeting next month, according to the CME FedWatch Tool, which forecasts interest rate movements based on fed funds futures trading data, That’s down from the 72% chance that was being priced in yesterday, ahead of Powell’s comments.
The Fed cut the influential fed funds rate by a quarter percentage point last week. That followed a half-point cut in September, when the Fed reduced rates for the first time in four years as inflation continued moving closer to the central bank’s target and the labor market showed signs of weakness.
Disney Extends Post-Earnings Surge—Watch These Levels
2 hr 18 min ago
Disney (DIS) shares were moving higher in early trading Friday, adding to the big gains recorded yesterday after the entertainment giant topped Wall Street’s quarterly estimates and provided an upbeat long-term outlook.
The stock was up 3.5% at $113 about half an hour after the opening bell.
The stock broke out above a pennant pattern last week, with upside momentum accelerating this week after the company’s better-than-expected quarterly results.
Investors should watch key overhead levels on Disney’s chart around $123, $137, and $153, while monitoring a major support area near $85.
Read the full technical analysis piece here.
Major Indexes on Track to Post Weekly Losses
3 hours ago
The S&P 500, Nasdaq Composite and Dow Jones Industrial Average are on pace record weekly losses, as the post-election rally that pushed major indexes to record highs loses steam.
On Monday, the S&P 500 closed above 6,000 and the Dow finished above 44,000 for the first time ever. Stocks have slumped since then, as the chart below shows.
For the Dow and S&P 500, this would mark the third week of the last four that the indexes have posted weekly losses.
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Major Index Stock Futures Point to Lower Open
3 hr 15 min ago
Futures tied to the Dow Jones Industrial Average were down 0.4%.
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S&P 500 futures were down 0.5%.
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Nasdaq 100 futures were off 0.9%.
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