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Stock Market Today: Dow Slips But Notches Best Month in Decades; Fed in Focus

Published 10/31/2022, 04:11 PM
Updated 10/31/2022, 04:16 PM
© Reuters.

By Yasin Ebrahim

Investing.com -- The Dow slipped Monday, pressured by tech, but notched its biggest monthly gain in decades as investors shift attention to the Federal Reserve decision later this week.

The Dow Jones Industrial Average fell 0.3% or 128 points, the Nasdaq was down 1%, and the S&P 500 fell 0.7%. The Dow had its best month since January 1976.

A 6% slump in Meta Platforms Inc (NASDAQ:META) led the fall in tech after mostly disappointing quarterly results from big tech.

Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), and Microsoft (NASDAQ:MSFT) were down more than 1%.

Falling semiconductor stocks also exacerbated the wobble in tech following pressure from Advanced Micro Devices (NASDAQ:AMD), NVIDIA (NASDAQ:NVDA) and ON Semiconductor Corporation.

ON Semiconductor Corporation (NASDAQ:ON) fell 9% despite quarterly results that beat on both the top and bottom lines and guidance that was in line with Wall Street estimates.  

Treasury yields, meanwhile, steadied after falling last week as investors looked to the start of the Fed’s two-day meeting on Tuesday that is expected to culminate in a decision to lift rates by 0.75% at the fourth meeting in a row. 

But the focus “will be on what comes next, and we expect Chair Powell to hint that the FOMC will likely slow the pace to 50bp in December,” Goldman Sachs said in a note.

Paramount Global (NASDAQ:PARA), meanwhile, fell nearly 4% after Wells Fargo downgraded the company to underweight from equal weight, citing worries about the company’s linear business and uncertainty in streaming.

Energy stocks sidestepped the broader market malaise after shrugging off a decline in oil prices as OPEC lifted its forecast on oil demand in the medium and longer term.

EQT (NYSE:EQT), Coterra Energy (NYSE:CTRA), and Schlumberger NV (NYSE:SLB) were up sharply, with the latter adding to gains from last week ahead of its Investor Day this week.

“While many agree with our view that the digital business and international business at SLB is best in class, there are questions whether investors can express the same view through peers that trade at lower multiples,” Goldman Sachs added.

In other news, Tusimple (NASDAQ:TSP) tumbled more than 45% after firing its chief executive Xiaodi Hou amid a Wall Street Journal report the Federal Bureau of Investigation and Securities and Exchange Commission are investigating whether the self-driving company improperly financed and transferred technology to Hydron.

Latest comments

Oil stocks are the only safe long play on this market, relatively safe, if Dems lose one chamber at least. Most other sectors will see stagflation turbulence ahead, continuing for long time. Some sectors will suffer a lot.
you mean tech for example. lol
 “Tech” is a rather wide category. Pure technology stocks would not get the worst stagflation hit, some of them have pricing power.
You are missing the stagnation part of your prediction.
And on the inflation front...East Coast retail diesel prices are soaring relative to the rest of the country, propelled by inventories in the region that are almost half of what they normally should be at this time of year.
According to the oilprice web site
Blue states of NE will get feel of Europe this winter.
Of course it does.  Mid term elections right around the corner.  Big Money wants to look good for their customers at month end.  The BS smoke and mirror horror show is coming together.
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