Stocks on Wall Street were slightly higher on Thursday following a meeting by the Federal Reserve. The S&P 500 was up 0.4% in midday trading, while the Dow Jones Industrial Average was up 0.5% and the Nasdaq composite was 0.7% higher. The bond market was quiet ahead of the U.S. government’s report on job gains, with economists expecting a slowdown in hiring. Apple is set to report its earnings after trading ends on Thursday, with its stock gaining 1.4%.
Earnings reports from other companies were also driving the market, with Qualcomm rising 9.9% after beating forecasts for profit and revenue. Carvana surged 36.1% higher after reporting better-than-expected results for the latest quarter, boosted by strong sales. MGM Resorts International also saw a 2.8% increase after topping forecasts for profit and revenue, thanks to stronger traffic at MGM China. However, Etsy experienced a 13.3% drop after only roughly meeting analysts’ expectations, citing a challenging environment for consumer spending.
DoorDash sank 13.5% after reporting a worse loss than expected and providing a forecast that fell short of analysts’ expectations. Peloton Interactive also saw a swing in its stock price, from an early gain to a loss of 13.2%, after announcing job cuts and a new CEO. Linde, despite reporting stronger results for the latest quarter, was one of the biggest weights on the S&P 500, sinking 6.3%. In the bond market, yields were easing following economic reports that showed mixed signals about the job market and productivity.
The economy is facing a delicate balance between strong growth and inflation concerns. Federal Reserve Chair Jerome Powell indicated that it may take longer than expected to control inflation before interest rate cuts can be considered. Traders, who initially expected multiple rate cuts in 2024, are now betting on only one or two. The yield on the 10-year Treasury fell to 4.60%, while the two-year yield fell to 4.91%. Stock markets in Asia and Europe were mixed, with Hong Kong’s Hang Seng jumping 2.5% while other markets in China were closed for a holiday.
Investors are closely watching economic reports and earnings updates from companies as they assess the health of the job market and the broader economy. The Federal Reserve’s decision to delay interest rate cuts has raised concerns about inflation and its impact on the economy and financial markets. The market’s reaction to earnings reports from companies like Apple, Qualcomm, and Carvana is influencing trading activity and driving stock movements. Uncertainty about the job market, productivity, and inflation is adding to the cautious sentiment among investors.
Overall, the stock market remains relatively stable despite the Fed’s decision and mixed economic signals. Companies continue to report their earnings, with some outperforming expectations and others falling short. The focus is on how the economy will continue to perform in the face of ongoing challenges, including inflation and interest rates. Investors are preparing for further developments in the job market and the overall economic outlook, as well as any potential policy changes by the Federal Reserve.
