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Stock market today: Dow rebounds as dip buyers pile into tech following selloff

Published 02/13/2024, 06:32 PM
Updated 02/14/2024, 04:16 PM
© Reuters -- The Dow closed higher Wednesday, as investors bought the dip in stocks, with tech leading the way following a sell-off a day earlier following stronger-than-anticipated U.S. inflation reading.

By 16:00 ET (21:00 GMT), the blue-chip Dow Jones Industrial Average gained 0.4%, or 151 points, while the benchmark S&P 500 rose 0.9%, the tech-heavy Nasdaq Composite roe 1.3%

Uber in 52-week high after unveiling $7B buyback; Lyft shines on earnings stage after wild swings following forecasting error 

Uber Technologies Inc (NYSE:UBER) rose 14% to a fresh 52-week high after the ride0hailing company unveiled a $7 billion stock buyback program and rolled out an upbeat gross bookings growth upbeat, expecting mid to high-teens over the next three years.

LYFT Inc (NASDAQ:LYFT) jumped 35% after reporting better-than-expected guidance and quarterly results as a jump in gross bookings and cost cuts boosted the bottom line. The results drew upgrades from Wall Street, with Wedbush saying it was "encouraged by the improving intermediate-term growth trajectory of the business," and raised its price target on the stock to $15 from $14. 

Lyft had been 60% higher in afterhours trading Tuesday, but pared some of those gains after the company incorrectly forecasted 500 basis points, or 5%, of adjusted EBITDA margin expansion for 2024, which was later corrected to 50 basis points. 

Fed speakers say inflation fight remains on track

Federal Reserve Vice Chair Michael Barr said the Fed was "confident" inflation is slowing toward the 2% target, though cautious that the path will likely be "bumpy."

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Federal Reserve Bank of Chicago President Austan Goolsbee said Wednesday that upside surprises in inflation doesn't mean that the Fed isn't on target to get inflation and rate cuts could get underway even if inflation is slightly higher. 

The remarks come just a day after data on Tuesday showed inflation slowed less than expected, denting investor hopes for an earlier rate cut.  

Airbnb slips after flagging moderating growth; Kraft Heinz slumps as Q4 sales falls short; Robinhood rallies

Airbnb fell more than 1% after the travel accommodation app flagged slowing booking rates in its current quarter, owing to tougher comps. The tough year-on-year comparison would impact the growth rate of nights booked in its first quarter compared to its prior three-month period, the company said.

Kraft Heinz Co (NASDAQ:KHC) has posted fourth-quarter net sales that missed expectations, as the packaged food group faced headwinds from recent price hikes that have dented demand. Shares in the Kool-Aid and Miracle Whip owner fell more than 5%.

Robinhood Markets (NASDAQ:HOOD) platform rose 13% after the trading platform reported guidance that topped estimate following better-than-expected quarterly results, driven by higher crypto and options trading. 

JMP Securities highlighted Robinhood's "strong underlying momentum coupled with the disciplined expense," as it upgraded its price target on the stock to $25 from $23. The company is "incredibly well funded with no debt ... we think the stock remains notably cheap with a current enterprise value of just $5.5B," it added.

Scott Kanowsky, Oliver Gray contributed to this report.

Latest comments

Commodities play a significant role in the global economy.
Which means?
The AI pump and dump is no different than the EV pump and dump. There is no question companies will use AI, the issue is that it cannot be monetized in the way people are thinking. There is a reason that NVDA only had a net of $15.3 billion in all of 2023 and now the people who bought the stock 90% cheaper are telling to to take it off their hands at current prices. There is absolutely no justification for a $2 trillion market cap even if it hits the 2024 projected revenue of $25 billion.
NVDA only has a P/E of 120, such a discount! Cannot wait for 1 more day to move my entire 401k into it. In a century they should hit current valuation targets.
Remember how risky tech dip buying was in 2000? It just kept dipping all the way to the bottom.
thoughts and prayers for you since you seem to be missing the rally casady.
2K doesn't matter... Fed buying all
deep buying?  who write it? deep buying?? 1.6% down... lol sometimes I think that your reporter was born 2 days ago
"dip", not "deep".  And market is up today.
2PM sharp, and another coordinated "buy" is made by savvy "investors."  What a surprise.  You can set your watch by it.  Fraudulent, criminally manipulated JOKE.
Mitch we know all about you..... we don't care which way the markets move; we make money no matter the direction.
the only thing fraudulent, is Mitch pioneer...
What about the huge losses all of 2022?
"UBS still sees Fed cutting rates 4 times this year despite the inflation uptick". I would like to thank UBS for affirming the economies self-identity. Even though inflation is up it identifies as being down, it is transflation. We should still do rate cuts in order to affirm its identity.
They're gonna prevent a loss today no matter how criminally flagrant they have to be.  Assume the proper position America, as the US working class is financially dismantled in broad daylight.
 No, but "they" stepped in and stripped 250 points in losses from the DOW in the final 30 minutes.
That means a hammer candle at the bottom.
man you always have the same blah blah blah
NVDA, a company that only made $15.3 billion total last year, has a market cap higher than the entire Chinese stock market.
There is almost $2 trillion of the current market valuation tied up in NVDA, a company that only made $15.3 billion in all of 2023 and even aggressive estimates are only projecting around $25 billion now. A handful of stocks with P/Es near 100 is going to cause a massive recession, if not depression, when the valuation collapses since so much of people's 401ks and savings are shoved into these bubbles.
so what? you seems the first day being in stock market, a stock with reasonable PE means it is an unwanted stock, market is crazy but so what? thats US style
Breaking out the bag of tricks today...How about that trampoline at the break-even point?  Again, remarkable how "investors" from around the world wait until the moment the US Ponzi Scheme goes red, then pile into stocks with such a mass, coordinated effort that they can turn the "market" around.  Still don't think this "market" is a JOKE?
traders that put the time and effort to learn how markets operate and manage their trades, make a lot more money, than those that are to lazy to leaarn and are always complaining and blaming others for their losses.
The 10AM savvy "investor" club shows up at 10AM per the script, flagrant and predictable as ever.  Remarkable how a global investment mechanism with millions of participants can follow the same patterns, day, after day, after day.  Can't make this stuff up folks.  Truly, the greatest financial fraud in history.
right on que, more paid for complaints from Mitch.
The crime of the millennium resumes in earnest.
You can go walking, gardening, working next a production line in 12 hours shifts if you don't like stock market.
It sounds like you are the guy on the sidelines missing out on the huge market gains making a ton of money like the rest of us.
Yeah Mitchel is always saying the sky is falling. Everyday... man get a life.
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