U.S. Stocks May Lack Direction Following Yesterday’s Modest Pullback
27 Fevereiro 2024 - 11:14AM
IH Market News
The major U.S. index futures are currently pointing to a roughly
flat open on Tuesday, with stocks likely to show a lack of
direction following the modest pullback seen in the previous
session.
Uncertainty about the near-term outlook for the markets may lead
to choppy trading on Wall Street following last week’s advance by
the Dow and S&P 500 to new record highs.
Traders may also stick to the sidelines ahead of the release of
some key economic data later this week, including a closely watched
inflation reading.
The Commerce Department’s report on personal income and
spending, which is scheduled to be released on Thursday, includes a
reading on consumer price inflation said to be preferred by the
Federal Reserve.
The inflation data could have a notable impact on the outlook
for interest rates, as Fed officials have said they need greater
confidence inflation is slowing before cutting rates.
U.S. stocks ended on a negative note on Monday, and the major
averages turned weak after a slightly positive start, as investors
largely stayed cautious ahead of some key economic data.
Among the major averages, the Dow ended lower by 62.30 points or
0.2 percent at 39,069.23. The S&P 500 settled with a loss of
19.27 points or 0.4 percent at 5,069.53. The Nasdaq, which spent
much of the day’s session in positive territory despite a choppy
ride, ended down 20.57 points or 0.1 percent at 15,976.25.
In economic news, data released by the Commerce Department
showed new home sales climbed 1.5 percent to an annual rate of
661,000 in January after surging by 7.3 percent to a revised rate
of 651,000 in December.
With the increase, new home sales continued to regain ground
after hitting their lowest level in a year in November. Economists
had expected new home sales to jump by 2.4 percent to a rate of
680,000 in January from the 664,000 originally reported for the
previous month.
Palo Alto Networks (NASDAQ:PANW) shares climbed more than 7
percent. Dominos Pizza (LSE:DOM) surged nearly 6 percent after
reporting stronger than expected quarterly earnings.
Micron Technology (NASDAQ:MU), Tesla (NASDAQ:TSLA), Applied
Materials (NASDAQ:AMAT), Illumina (NASDAQ:ILMN), Salesforce.com
(NYSE:CRM) and Arista Networks (NYSE:ANET) gained 2 to 4
percent.
Walmart (NYSE:WMT), Marathon Petroleum (NYSE:MPC), Marathon Oil
(NYSE:MRO), Qualcomm (NASDAQ:QCOM) and Costco (NASDAQ:COST) also
posted strong gains.
Berkshire Hathaway (NYSE:BRK.A) lost nearly 2 percent, despite
the group posted an annual profit of $97 billion, its second
straight record annual profit.
Alphabet (NASDAQ:GOOG), Walgreens Boots Alliance (NASDAQ:WBA),
Whirlpool (NYSE:WHR), Moderna (NASDAQ:MRNA), Verizon (NYSE:VZ) and
Pfizer (NYSE:PFE) also ended sharply lower.
Alphabet (NASDAQ:GOOG)
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