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Stock Market Today: Dow ends lower as investors await key inflation data

Published 02/25/2024, 07:02 PM
Updated 02/26/2024, 04:03 PM
© Reuters.

Investing.com - The Dow closed lower Monday as investors mulled ongoing quarterly earnings from corporate America and awaited further catalysts including the release of key inflation data later this week.

By 16:00 ET (21:00 GMT), the Dow Jones Industrial Average was down 66 points, or 0.2%, the S&P 500 fell 0.4% and NASDAQ Composite slipped 0.1%.

Domino's Pizza, Freshpet deliver impressive earnings; Berkshire Hathaway report record profit   

Domino’s Pizza (NYSE:DPZ) stock soared over 5% after reporting quarterly results that topped Wall Street even as inflation weighed on margins. The pizza chain hiked its dividend and gave the green light to further share repurchases.

Freshpet Inc (NASDAQ:FRPT) stock soared nearly 19% after the pet-food manufacturer’s fourth-quarter revenue and profit topped analyst estimates, helped by a rise in sales as it boosts media spending.

Berkshire Hathaway (NYSE:BRKa) fell 1.7%  despite Warren Buffett's conglomerate posting its second straight record annual profit, bringing it closer to a $1 trillion market value.

Retail earnings on tap for more spending cues 

With the fourth quarter earnings season now coming to a close, earnings reports from a string of major retailers are on tap this week. 

Lowe’s Companies (NYSE:LOW), Macy’s (NYSE:M), TJX Companies (NYSE:TJX) and Best Buy (NYSE:BBY) will release their quarterly readouts through the week, with any signs of a spending slowdown squarely in focus. 

The slew of retail earnings will offer clues into the strength of the consumer at a time when many are concerns about the impact of sticky inflation and higher for longer interest rates.

Inflation, GDP data awaited 

However, a string of signals from the Federal Reserve last week showing that the central bank was in no hurry to begin trimming interest rates in the near-term limited the gains. 

Anticipation of more key inflation readings this week, specifically the PCE price index, which is the Fed’s preferred inflation gauge, is keeping traders on edge at the start of the new week. 

Investors were seen largely pricing out the prospect of May and June rate cuts by the Fed, amid increasing signs that inflation remained sticky. 

Beyond the PCE data, focus is also on a second reading of fourth-quarter gross domestic product data, which is due on Wednesday. The while U.S. economic growth has remained resilient in comparison to other developed countries, it has also cooled in recent quarters. 

Alcoa falls on $2.2B offer for Alumina; Ford suffers F-150 setback

Elsewhere, Alcoa (NYSE:AA) stock fell over 4% after the alumina producer made a $2.2 billion offer for Australian peer and joint venture partner Alumina (ASX:AWC).

Ford (NYSE:F) fell 1% despite the auto giant confirming it had halted shipments of all of its 2024 model year F-150 Lightning trucks, citing quality checks for an unspecified issue.

Crypto-related stock hitch ride on bitcoin rally

Cryptocurrency-related stocks including Coinbase Global Inc (NASDAQ:COIN), Marathon Digital Holdings Inc (NASDAQ:MARA), and Riot Platforms (NASDAQ:RIOT) were in rally mode, underpinned by more than 4% rise in Bitcoin (BitfinexUSD) above $54,000.

The latest rally comes amid ongoing demand for the Bitcoin-spot ETF, which was approved last month, and the upcoming halving event set to get underway in the summer.  

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

Latest comments

Impact of AI on Water Resources: AI's projected water usage could hit 6.6 billion m³ by 2027, signaling a need to tackle its water footprint. Environmental Concerns: Rising water use in data centers is concerning due to global freshwater scarcity and climate change.
With the rise of generative AI, companies like Microsoft, Google, and Meta have significantly raised their water usage, sparking concerns about the sustainability of such practices amid global freshwater scarcity and climate change challenges. Increased Water Use by Tech Giants: Tech Giants have notably increased their water consumption for cooling data centers due to the escalating demand for online services and generative AI products. Cooling Requirements for AI: AI server cooling consumes significant water, with data centers using cooling towers and air mechanisms to dissipate heat, causing up to 9 liters of water to evaporate per kWh of energy used. The Hidden Water Cost:: The U.S. relies on water-intensive thermoelectric plants for electricity, indirectly increasing data centers' water footprint, with an average of 43.8L/kWh withdrawn for power generation.
Most informative but this sounds AI-generated. Are you a bot?
You're probably right, Line Work. We could be some of the guinea pigs for a trial run. AI fraud is going to run rampant soon. as it can duplicate someone's voice or generate photos at will. It's advisable that everyone in your immediate circle and family establish a password to confirm identity whenever someone calls for personal information or cash. Only communicate this password in person or by mail. Never discuss it in the presence of any tech device, as they all listen and log data. Good luck, man! Crazy times to come.
So that's what the mission impossible movie was all about huh...
As the 2YR yield climbs. 5% within sight.
*  Since 2022Q4, ...
Small caps suffer most from high rates. If the 2 yr hits 5%. The Russell 2000 will immediately drop at least $100.
  2-yr yield flat today, but small caps outperformed broad market significantly.
you are All caught in the the jetsum of the media , the media can't tell you which way the market is going. they can only report on the past, what has already happened.
You have realistic expectations of the free media.  ;-)
if you bet against Bidenomics, just short sell, more people short, more squeeze and pumps.
tomorrows headlines, Nasdaq dips due to inflation risks. then the day after, Investors flock to buy the dip, Nasdaq at record highs. YOU WELCOME!
US notes keep blowing past expectations, and mkt not selling off on things it promptly did in the recent past. Beautiful big red candle coming soon.
The way I see it. NASDAQ should dip back to 15,400. just waiting on the right word.
When or what time is the eur usd market likely to experience a massive bearish market ?
why ev burst and solar burst didnt bring down the whole market yet nvidia can do so? us2000 still being rubbed on the floor....
What a time to publish these types of articles yeah? On Thursday, only 5% of news articles is loaded with delay rate cutting fear, 95% of other articles are full of encouragement and acclamation for NVIDA and AI hype.
"this article should be published on Thursday rather than today"  --  Can't expect news from 3 days in the future to be published today.  On Thursdays, they didn't know market would flatten on Friday.  "warned about hype, or a correction might be ahead."  --  News articles report what happened, not predict what will happen.  Bears, including those on this site and media like zerohedge, have been predicting corrections/crashes since the local bottom in late Oct 2023, as they have since every bottoms.  Mainstream financial news articles (like those from investing.com) are NOT trying to do what you were doing on Thurs.  Your expectations are not realistic.
Articles play price down or up..Its s game..
 I also a change in tone today compared to the last  few weeks with more talk about hype
Like the article says. It's HYPE over AI. Sure, chip makers are booming, but harnessing AI software to increase the bottom line is another story.
So you're saying the article is correct.
rate fears?? what is it??
Excuse da jour, losers.
Is what's in the article true?
C’mon give some rate hike fears
Article does give some.
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