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US stocks were little changed on Thursday as investors waited for a Jerome Powell speech to set the tone for interest-rate cuts and assessed the impact of a Republican sweep of political power.
The Dow Jones Industrial Average (^DJI) was flat, while the S&P 500 (^GSPC) slipped sligthly. The Nasdaq Composite (^IXIC) was down 0.1%, coming off a mixed day for the three major gauges.
Though the mood is muted, stocks are still riding high near records after the latest consumer inflation data kept hopes for a December rate cut aloft. That optimism broadly held after a reading on wholesale inflation showed prices firmed slightly more than expected in October.
Initial jobless claims fell last week to 217,000, their lowest level since May, and less than 220,000 expected by economists.
Focus is on how the Federal Reserve chair sees inflation developing, as investors gauge the odds of rates going back to staying higher for longer. The market is already weighing the potential upward pressure on prices from President-elect Donald Trump’s policies.
Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards
Republicans held onto their slim majority in the House of Representatives, handing Trump and his party a “trifecta” — unified control of power across Washington. The sweep limits curbs on implementing the incoming president’s aggressive economic agenda, which has helped spur the post-election breakneck rally in stocks.
Worries about Trump’s America-first plans helped drag Chinese stocks down as much as 20% from their October high in Hong Kong, with tech hardest hit.
In corporates, Disney’s (DIS) quarterly earnings beat estimates as its streaming unit swung to a profit. The stock jumped 8% in early trading after revenue also topped Wall Street expectations.
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Disney pops 10% after earnings beat, guidance tops estimates
Yahoo Finance’s Alexandra Canal reports:
Disney (DIS) on Thursday reported fiscal fourth quarter earnings per share and revenue that topped Wall Street estimates, as its direct-to-consumer business built on recent momentum and swung to a profit.
Strong guidance for the next two years also fueled investor optimism, sending shares up over 10% in early trading following the results.
Read more here.
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Dow, S&P 500, Nasdaq tick higher with Powell speech on deck
The major averages opened mixed on Thursday as investors awaited a speech from Fed Chairman Jerome Powell while assessing a Republican sweep in Congress.
The Dow Jones Industrial Average (^DJI) ticked up 0.2%, while the S&P 500 (^GSPC) gained slightly. The Nasdaq Composite (^IXIC) also rose 0.1%.
Republicans won control of the House on Wednesday, completing their 2024 election ‘trifecta.’
Investors have been watching a rising US Dollar Index (DX-Y.NYB) and the impacts that could have on the markets. Commodities like oil and gold which invoiced in dollars, have been under pressure in recent days.
Bitcoin (BTC-USD) held above $91,000 on Thursday morning, after climbing past $93,400 in the prior session.
The world’s largest cryptocurrency, which has been at the center of the “Trump trade” catalyzing moves across a range of assets after Donald Trump’s White has win last week.
The token is up more than 30% since Election Day.
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Initial jobless claims drop to lowest level since May
Initial jobless claims fell by 4,000 to their lowest level since May, at 217,000 for the week ending Nov. 9. The reading was less than the 220,000 claims expected by economists.
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