Market News
Wall Street ended lower on Tuesday as investors digested Mary Daly’s remarks during a meeting at New York University, regarding interest rates. Market participants also evaluated Q3 earnings results. The Nasdaq, the Dow, and the S&P 500 all closed in negative territory.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.8% or 324.80 points to close at 42,740.42. Fourteen components of the 30-stock index ended in negative territory, while 16 ended in positive.
The tech-heavy Nasdaq Composite declined 187.10 points or 1.01% to 18,315.59.
The S&P 500 lost 0.8%, or 44.54 points, to end at 5,815.26. Five broad sectors of the benchmark index closed in the red, while six ended in the green. The Energy Select Sector SPDR (XLE), the Technology Select Sector SPDR (XLK), and the Health Care Select Sector SPDR (XLV) fell 3.2%, 2.2% and 1.2%, respectively.
The fear-gauge CBOE Volatility Index (VIX) increased 4.8% to 20.64. A total of 12.64 billion shares were traded on Tuesday, higher than the last 20-session average of 11.93 billion. The S&P 500 posted 112 new 52-week highs and no new lows; the Nasdaq Composite recorded 173 new highs and 82 new lows.
Fed’s Mary Daly Signals Potential for More Rate Cuts This Year
San Francisco Federal Reserve President Mary Daly mentioned that the Federal Reserve is ready for additional interest rate cuts based on economic data during a meeting held on Tuesday at New York University. After the 50-basis point cut in September, traders are predicting a 96.3% likelihood of another 25-basis point cut in November, according to CMEs FedWatch tool.
Daly described the September cut as a “right-sizing” adjustment of policy that maintains inflation controls, while acknowledging the progress made. Being a member who votes on the Federal Open Market Committee (FOMC), she proposed that a reduction of one or two rates this year might be suitable if inflation aligns with predictions.
Q3 Earnings Results
Bank of America Corporation BAC reported third-quarter 2024 adjusted earnings of $0.81 per share, outpacing the Zacks Consensus Estimate of $0.78 per share. The financial services company generated total revenues of $25.35 billion, beating the Zacks Consensus Estimate by 0.22%.
Johnson & Johnson JNJ reported third-quarter 2024 adjusted earnings of $2.42 per share, surpassing the Zacks Consensus Estimate of $2.22 per share. The pharmaceutical company generated total revenues of $22.47 billion, beating the Zacks Consensus Estimate by 1.27%.
Consequently, the stock price of Bank of America Corporation rose 0.6%, while the stock price of Johnson & Johnson increased by 1.6%. Bank of America Corporation currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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