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Stock Market Today: S&P 500 snaps 5-week win run as hotter inflation cools bulls

Published 02/15/2024, 06:50 PM
Updated 02/16/2024, 04:11 PM
© Reuters. -- The S&P 500 closed on Friday, snapping a five-week winning streak as data this week showing inflation remains rein in investor bets on sooner rather later rate cuts.

The S&P 500 fell 0.5%, the tech-heavy Nasdaq Composite slipped 0.6%, and the blue-chip Dow Jones Industrial Average fell 0.4%, or 157 points.

Treasury yields rise as producer price index comes in hot to further dent rate-cut outlook 

Treasury yields jumped, with yields on the 2-year Treasury rising 8 basis points points to 4.652% as rate-cut bets were sullied after the U.S. producer price index by 0.3% in January from 0.1% in December, above economists expectations for a 0.1%. 

The data arrived just days after consumer inflation surprise to the upside to further muddying investor bets on aggressive rate cuts. 

The stronger PPI report was driven by a 0.5% rise in trade services, which includes gross wholesale and retail margins and accounting for nearly a quarter of the core, Pantheon Macroeconomics said, though added the overall trend is slowing. 

"One disappointing month does not change the trend, and none of the inflation fundamentals have changed," it added.

Coinbase shines after Q4 beat; DoorDash slips on guidance; Nike to cut jobs

Coinbase Global Inc (NASDAQ:COIN) rose rose more than 8% after posting fourth-quarter income that topped Wall Street estimates, as the approval of spot-Bitcoin exchange-traded funds boosted activity on the crypto exchange platform. 

DoorDash Inc (NASDAQ:DASH) fell more than 9% as softer guidance overshadowed better-than-expected adjusted earnings before interest, taxes, depreciation, and amortization, or EBITDA, and revenue in Q4.

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The food delivery company's Q1 guidance points "toward deceleration versus an accelerative outlook for Uber (NYSE:UBER) Eats raising share loss concerns," Deutsche Bank said in a note, but stressed that it views "weakness today as a buying opportunity."

Nike Inc (NYSE:NKE), meanwhile, fell more than 2% after the sports apparel maker's plan to cut nearly 1,700 jobs as part of a broader restructuring stoked worries about slowing growth. 

Alphabet drags big tech lower, but Applied Materials surge boosts chips; Roku punished for larger Q4 loss

Google-Parent Alphabet Inc Class A (NASDAQ:GOOGL) dragged the broader sector lower after falling 1.6%, though losses in the sector were limited by an Applied Materials-led rally in chip stocks. 

Applied Materials Inc (NASDAQ:AMAT) jumped 6% after delivering better-than-expected guidance and quarterly results fueled by strong demand for advanced chips used in artificial intelligence.

Roku Inc (NASDAQ:ROKU), meanwhile, tumbled nearly 24% as streaming-media company's better-than-expected quarterly results were offset by concerns about slowing platform growth.  

"[I]mplications on Platform growth and operating costs for the remainder of the year are more muted, and lead to estimate cuts," Macquarie said in a note as it cut its price target on the stock to $88 from $93. 

(Scott Kanowsky, Oliver Gray contributed to this report.)

Latest comments

I think things will be fine, the US never stops amazing me, from time to time; I would not worry if SPX took a dive to 4920-4850, it would be ok; I will add to my longs if that happens. GL and good weekend
miserable economic data this week
SPX down only 0.4% this week after recovering most of Monday's drop.
can I get my money today
Welcome to the "late trade" fraud in the BIGGEST INVESTMENT JOKE IN THE WORLD.  You can always count on savvy "investors" to load up "in late trade," whether the "market" is up or down.  Seems they particularly love paying the highest price of the day for the most grossly overvalued equities in history, to hold over the weekend.  Assume the proper position America, and prepare for yet another financial knife in the back.
Wrong agian.
Rated have nothing to do with the market, even though everyone says they do.
 really, the market has told us Fed rate changes have nothing to do with market movements?  I must have blinked and missed it...
  Paul said "rated".  Did he mean something like Moody's/analysts' ratings or Fed's interest rates?
Rates have everything to do with markets, you just want to see an immediate correlation. and bc you don't see it, you think it doesn't. markets are forward looking, speculative and place of what thinks will happen, it those bets are wrong it corrects.
lower? just kidding, never short sell
we still green buddy
Green didn't last long.
one month's data does not signal a change in trend.tbere has been no major increase in commodity prices.
bad data means good market, ppl still dont get it?
Another criminally predictable, miraculous Friday intraday "recovery."  Can't have a loss on a Friday in the greatest financial FRAUD in history, and BIGGEST INVESTMENT JOKE IN THE WORLD.
"Can't have a loss on a Friday"  --  Closed in the red.
Pioneer keeps telling the same stories. is he a bot?
OMG, look at all these undervalued stocks with P/Es of only 100! And inflation rising! So bullish!
Rising inflation? Who cares, need more of these stocks with P/Es of 100! Why wait for valuations to come down when you can buy now and maybe start seeing them produce a profit in half a century!
My main concern is not the terrible economic numbers, but how many black and transgender people Biden has put in charge. Please stop reporting on the white male patriarchy concepts like "producer price data" and "inflation" and start telling us how many trannies are working in Wall Street.
Downfall of society.
Prices are rising (hyperinflation) quick send money to other countries for proxy wars
more more wishful maga b's from James
you might want to check your definition of odviously don't know what it means.
Dowlile either side of your cult of personality
bidenomics = endless inflation
inflation is a historical fact and has happened for as long as the monetary system has existed.. you're just displaying your own bias and ignorance yet again...
Today's selloff is just another example of corporate America's malignant capitalism and greed. Corporations continue to raise prices to see how far they can go and continue to rape the consumer. This causes euphoria at the corporate level and decreases purchasing at the consumer level. Thus, the market reacted by selling off all its previous purchases because it had no balls and is intimidated by the Fed.
Inflation news will be shrugged off as investors become confident that the March interest rate cut becomes reality. LOL
And the criminally predictable "recovery" commences.  How long before it's manipulated green?  Fraudulent JOKE.
of course the futures are higher - a big pump on low volume during the night is a way to fleece the retail investors - the market manipulation is at all time extremes
Inflation rising  core PPI is 0.5% higher MoM....Out of control....
sounds like a pump in the 1st half hour to suck in retail money and then flush everyone out
wallstreet has no working class, who care about the PPI, just pump as usual.
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