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Stock Market Today: Dow ends higher as dip-buyers emerge into close

Published 02/20/2024, 07:31 PM
Updated 02/21/2024, 04:05 PM
© Reuters.

Investing.com-- The Dow closed higher Wednesday, amid dip-buying into the close as investors shrugged the  release of the minutes of the Federal Reserve's January meeting showing members were concerned about cutting interest rates too soon. 

At 16:00 ET (21:00 GMT), the Dow Jones Industrial Average was up 47 points, or 0.1%, the S&P 500 index rose 0.1% and the NASDAQ Composite fell 0.3%, with the latter down more than 1% intraday. 

Fed minutes show no urgency among members to back rate cuts

Federal Reserve policymakers signaled no urgency to pivot to rate cuts as concerns of "upside risks" to inflation begin to emerge, according to the minutes of the Federal Reserve’s Jan.30-31 meeting released Wednesday.

In a further sign that the Fed isn't leaning toward a sooner rate cut, the minutes showed that Fed members had expressed "uncertainty associated with how long a restrictive monetary policy stance would need to be maintained." 

Treasury yields remained near session highs following the release of the minutes, with the rate-sensitive 2-year Treasury yield up 4 basis points to 4.655%. 

Nvidia spurs tech losses amid pre-earnings jitters; Palo Alto plummets after guidance cut

Nvidia (NASDAQ:NVDA) closed 2% lower, though that was well above session lows as jitters persist ahead of the the chipmaking heavyweight quarterly results.

The company is expected to clock EPS of $4.58 on a revenue of $20.37 billion - both up substantially from the same period a year ago. 

But doubts over Nvidia’s outlook and stretched price-to-earnings ratio have spurred some profit-taking in the chipmaker, which had raced to record highs in recent sessions. 

Palo Alto Networks (NASDAQ:PANW) fell more than 28% after cutting its full-year guidance as the cybersecurity company changed its strategy by increasing free product offers -- expected to weigh on billings growth for 12-to-18 months -- to customers in the hope of accelerating adoption of its offerings.    

Teledoc, SolarEdge take hit on weaker outlook; Wingstop weaker revenue growth offsets Q4 earnings beat

Teladoc (NYSE:TDOC) slumped 24% on disappointing first-quarter guidance as the on-line health-care company as its BetterHelp therapy platform's lower marketing spending yields are expected to continue in the months ahead.

SolarEdge Technologies, meanwhile, (NASDAQ:SEDG) fell 12% on weak first-quarter revenue guidance as inventory overhan is expected to continue to weigh on margins. The solar company's management attempted to tout potential drivers to boost margin, Oppenheimer said in note, but "we believe the diversity of products and end-markets SEDG serves points to the potential for an uneven recovery."

Wingstop (NASDAQ:WING) fell more than 4% as restaurant chain's better-than-expected fourth-quarter earnings were overshadowed by fourth-straight quarterly revenue decline. 

Amazon in, Walgreen Boosts Alliance out of Dow Jones Industrial Average 

Amazon.com Inc (NASDAQ:AMZN) was up 1% as the e-commerce giant is set to replace Walgreen Boosts Alliance in the Dow Jones Industrial Average index before markets open on Feb. 26. The move was triggered by Walmart’s decision to do a 3-to-1 stock split, which will cut its weighing in the index.

Amazon's weight will be 17, out of the 30 stocks in the index, while Walmart (NYSE:WMT) will drop to 26 from 17. 

Energy leads stocks higher

Energy stocks led the broader market higher, as oil prices cut losses to settle higher amid ongoing support from elevated geopolitical tensions in the Middle East that threaten to disrupt supplies. 

EQT Corporation (NYSE:EQT), Coterra Energy Inc (NYSE:CTRA), ConocoPhillips (NYSE:COP) were among the biggest gainers in the energy sector.

(Peter Nurse, Ambar Warrick contributed to this article.)

Latest comments

esp its graphic chip GPU
AMD's Radeon Technologies Group
is there any genuine competitor to NVDA?
Hi
NVDA: "Trust us bro, we know our P/E is over 100 right now but we will totally make money in the future"
Buying an overinflated stock with a 0.04% dividend......
Of course NVDA's shares are up.  Nothing is ever "priced in" to this criminally manipulated farce folks call a "market."  Unreal that folks believe in, and accept this fraudulent JOKE.
I got the time travel, but darn, looks like I missed out on the Virgins.
  Ha ha!  Only fools & degenerate gamblers would get into the waters with sharks like us!  ;-)
It's more than priced in, but obviously there is a lot of short activity in NVDA. Similar to TSLA, it kept pumping but then finally massively dumped. AI craze is just like the EV crazy, they are profiting off retail and then will move onto the next pump and dump fad. Everybody knows NVDA is not worth $2 trillion, it is not even worth $500 billion right now.
NVDA had $15.3 billion pro.fits in all of 2023, and this year had a market valuation $2 trillion purely based on speculation about AI. AI is not going to be monetized in the way people think it is, and all these bubble valuations will pop. Even if NVDA pro.f.its went up 500% YoY the stock would still be overpriced right now. They have priced in a century of pro.fi.ts.
Bless the lil bears hearts and most of all...Thank You.
NVDA had $15.3 billion pro.fits in all of 2023, and this year had a market valuation $2 trillion purely based on speculation about AI. AI is not going to be monetized in the way people think it is, and all these bubble valuations will pop. Even if NVDA profits went up 1,000% YoY the stock would still be overpriced right now.
Dip-Buyers emerge???...you mean the FED and Central Banks emerge like they do every time there is price discovery to the downside. The charade must go on...everyone's 401K is depending on it!!
100%
STAN RIGHT ON. SHELDON
What dip 😂?
dip-buying ???
Yes, that's what smart money does.
Another round of flagrantly predictable FRAUD, and another "late trade" magic show in the BIGGEST INVESMENT JOKE IN THE WORLD.  Anyone surprised?
So predictable that you waited til AFTER the fact to predict  ;-)
another round of ignorant nonsense from our resident paid troll. Mitch
So predictable but you probably lost money shorting anyway and hence all the belly aching
So the market rips into the closing. Mmmk
the manipulation continues!
well vetter I see your still losing money..
The market overreacted after the minutes release and then sanity returned.  That's a good thing.
Stocks soared over 5K on rate cut hopes since last November and now they are soaring on "no rush to cut rates"?? Got it!! Its priced in right? Everything makes sense in these 'free' markets
sorry I dont see any Drop, dont cheat the bears no more
SP500 2900 before 5400.
I'll take that bet.
I'd be careful with casador's predictions he is subject to wishful thinking. if this market is starting a correction then approximately 4400 is a probable first target.if it breaks that area then you have as much as 70% probability of much lower prices.
protect yourself,always remember nothing is a 100% be prepared to exit your position.. it is probably is only a correction in what appears to be a very powerful bull market.
Remember Jerome being really dovish about rate cuts in November whilst the big tech stocks instigated the largest share buy back scheme in the history of the stock market? Well, now you know that was a deliberate manipulative pump - to get the market to ATHs - so the big players could sell out billions of USD of shares - now they're about to dump leaving the retail investor and their pension plans holding the bag
We can see that the 'rate cut hopes' narrative was used as a cover for FED liquidity pumps. Now that rate cuts are becoming less and less likely, stocks are still going up. Mission accomplished!!
Me ish has been predicting disaster of 2+ years.
me ish the statistics on the Big institutions suggests their buying not selling....
Check where US is buying... European stocks 🤣🤣
don't you mean that you are buying European stocks.
Stocks are falling because of Nvidia and the Fed. Nvidia and Powell need to f*** off, they are fraudulent people and company
when the markets drop tthere are more sellers than buyers. if you're looking to blame some one else for your loses, you probably shouldn't be in these markets.
 sure but the insiders do have inside information and they do know when to sell whilst their lamestream media pump the markets to hype them up to fleece the retail investor- ever the way it was
me ish yes insiders know what's going on in their companies, but the SEC watches these guys and if they try to use this information they can lose everything....and end up serving time. the financial media is just reporting. most of the reporting you follow is old news to most successful traders..like all media today some of them voice and their opinions; for most successful traders most of it is just noise.
The flagrant, criminal removal of losses continues.  Fraudulent, manufactured "rallies" walk a clothes line, yet every single loss is met with significant, intraday volatility as the breakers continue to prevent losses.  Assume the proper position America.
LOL. Well, that could explain it.
Typical shortsell squeme!
Mitchel is a paid troll that likes the attention. this loser isn't a trader or an investor.
shows one how week the US economy is. they depend on 1 stock! sad
They do? Wow! Thanks for the information.
The 10AM FRAUD commences on schedule, as the greatest redistribution of wealth in history continues.  No end to the flagrant, criminal manipulation of this JOKE of a "market".
apparently the market is redistributing Mitch's wealth.
If 25 / 50 basis points is going to make a difference .. we are fbhyted..still need to offlad the balance sheet. 9.7 trill dollars.
Rate cut rate cut rate cut rate cut rate cut…. Suckers! Fed cant possibly cut rates until Government debt is paid down… low rates are dead
and therefore soon enough the stock market will crash - there's so much debt to be rolled over this year - it's going to be a blood bath
me ish, you've been preaching that now off and on for years; eventually you might be Right. if Trump wins the election, expect that crash at the end of his four year term.
Consumer spending is a key driver of economic growth.
Comsumers will spend themselves to bankruptcy
  You're replying to a spammer, who's more correct than you!
William, more ignorance....have you thought about taking a course in macroeconomics ..government debt is not the primary driver of economic growth.. increase in production of goods, and services.is the primary force for economic growth in any market driven economy including the United States.
Technology stocks continue to perform well.
Inflation concerns continue to linger.
Also depends on consumer soending. Soon will need more AI bankruptcy lawyers.. Unreal. The appetite of Conus
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