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Stock market today: Dow ekes out win after choppy day as focus shifts to Powell

Published 03/06/2023, 04:05 PM
Updated 03/06/2023, 04:23 PM
© Reuters

© Reuters

By Yasin Ebrahim

Investing.com -- The Dow eked out a win Monday, after wavering between gains and losses throughout the day as an Apple-led melt-up in tech fizzled out after rates regained momentum ahead of eagerly anticipated testimony from Federal Reserve chairman Jerome Powell.

The Dow Jones Industrial Average added 0.1%, or 40 points, the Nasdaq Composite was down 0.1% and S&P 500 gained 0.1%.

Growth stocks such as tech were forced to give up some gains as U.S. Treasury yields turned positive ahead of Powell’s semi-annual testimony on Capitol Hill that could offer clues on monetary policy.

“The testimony is key because if he [Powell] wishes to influence market pricing for the decisions that will come out of the March 21-22 FOMC meeting then this is his last and best chance to do so,” Scotiabank said in a note.

The testimony from Powell comes just days ahead of the February nonfarm payrolls due Friday and inflation report due next week, both of which are expected to play an important role in the Fed’s thinking on monetary policy measures.

Apple (NASDAQ:AAPL) jumped about 2% after Goldman Sachs issued a Buy rating on the stock after six years on the sidelines, citing strength in the tech giant’s services business.  

Other big tech stocks also attracted buying pressure, with Alphabet (NASDAQ:GOOGL) up 1.6% and Microsoft Corporation (NASDAQ:MSFT) up 0.6%.

Tesla (NASDAQ:TSLA), meanwhile, fell more than 2% after the electric carmaker cut prices in the U.S. for the second time this year to boost demand. Tesla was also dealt a blow by Morgan Stanley removing the EV maker as a ‘top pick’ in favor of Ferrari.

Morgan Stanley lifted its price target on Ferrari NV (NYSE:RACE) to $310 a share from $280 previously on optimism that the race car company has “levers to pull for both growth or downside protection.”

Materials, meanwhile, were the worst-performing sector down more than 1% weighed down by a fall in commodity prices after China delivered a modest growth outlook of about 5% for 2023. 

In other news, sentiment on homebuilders was soured after JPMorgan doubled downgraded KB Home (NYSE:KBH) to Neutral, and downgraded DR Horton Inc (NYSE:DHI) to Neutral, citing valuation concerns.

Boeing (NYSE:BA), a major Dow component, kept the broader market's gains in check amid reports a software issue threatens to delay deliveries of its 737 MAX and 787 jets by up to a year.

Latest comments

wel don
ok
Bond yields back up.
The market was negative today. One can just look at Russell. Quite possible, though, that this site commentators hardly know what “russell” means.
Longs got trapped during the course of the day as in many trading days after the pandemic. It's a disgrace how everything manipulatively changed.
Leviticus 25:17
My 401K is down 15% YoY and Inflation is over 10% YoY. Thanks a lot Biden
Abolish the Fed what does gender have anything to do with the comment. If you are doing so poorly, stay away from investing. BTW, the seeds for inflation were put in when your boy was prez.
Abolish the Fed your poor returns have no attachment to biden pick another punching bag. BTW the seeds for inflation were put in when your boy was prez. Never again
If you're losing money, maybe do us the favor of stop giving investing/trading advice/predictions.
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