U.S. stocks reverse gains; Dow down and Nasdaq flat
Investing.com | Author Liz Moyer
Published Feb 09, 2023 09:47AM ET
Updated Feb 09, 2023 01:30PM ET
By Liz Moyer
Investing.com -- U.S. stocks reversed earlier gains on Thursday and were turning lower despite strong earnings reports that overcame fears about more interest rate increases.
At 13:29 ET (18:29 GMT), the Dow Jones Industrial Average was down 63 points or 0.2%, while the S&P 500 was down 0.1% and the NASDAQ Composite was flat.
Walt Disney Company (NYSE:DIS) beat expectations and announced a reorganization that will result in 7,000 job cuts as it focuses on lowering costs. Newly returned CEO Bob Iger has put an emphasis on improving the company’s streaming business. Disney shares rose 2.5%.
PepsiCo, Inc. (NASDAQ:PEP) and AbbVie, Inc. (NYSE:ABBV) also beat expectations for the recent quarter.
Jobless claims came in slightly higher than expected. Initial claims for last week were 196,000, higher than the 190,000 expected and up from the prior week. But new claims still remain under 200,000, which is an indication of a still-tight labor market.
Last week’s unexpectedly strong jobs report for January stoked some fear that the Federal Reserve would be forced to continue to raise rates. Fed officials said this week that the central bank’s mission to cool inflation isn’t yet done, and could take longer than some expect. But investors have been hoping for a sign that its interest rate hikes are about to reach a pause, and eventually a reversal.
Futures market traders are betting the Fed will lift rates to just over 5% by July. Most foresee another quarter percentage point rate hike in March.
Next week brings the newest data on the consumer price index and retail sales, which the Fed will be watching to help guide its policy.
Later today, PayPal Holdings, Inc. (NASDAQ:PYPL) reports earnings. Analysts expect earnings per share of $1.20 on revenue of $7.4 billion. The report would come a day after buy now pay later rival Affirm Holdings, Inc. (NASDAQ:AFRM) missed expectations and announced it would cut 19% of its workforce, acknowledging it didn’t shift quickly enough when economic conditions changed in the past year.
Get The News You Want
Written By: Investing.com
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.