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Stock Market Today: S&P 500 slips as tech struggles ahead of key inflation data

Published 02/27/2024, 07:16 PM
Updated 02/28/2024, 04:03 PM
© Reuters

Investing.com-- The S&P 500 slipped Wednesday, but the broadening out of the rally beyond tech kept losses in check ahead of key inflation data that will likely influence the Federal Reserve interest rate outlook.

By 16:00 ET (21:00 GMT), the Dow Jones Industrial Average fell 23 points, or 0.1%, S&P 500 fell 0.2%, lower and NASDAQ Composite dropped 0.6%.

Signs of cooling in economy ahead PCE inflation in focus

The U.S. economy expanded at a 3.2% annualized rate in the fourth quarter, revised slightly down from the previously reported 3.3% pace, and a drop from 4.9% growth the prior quarter.

"While the minimal revision to fourth-quarter GDP underscores the ongoing storyline of a strong economy and resilient consumer [...] momentum clearly slowed from an outsized rise of near 5% in the third quarter into year-end," Stifel said in a note. 

The weaker growth data come just a day ahead of the PCE price index, the Fed’s preferred inflation gauge, that is likely to factor into the central bank’s outlook on interest rates. 

"The positive economic outlook bodes well for corporate earnings," said Salvatore Ruscitti, U.S. equities strategist with MRB Partners. "Earnings growth should be less narrow this year, thereby supporting a broadening of equity market leadership."

Beyond Meat sizzles on margin outlook; TJX continues retail-earnings parade 

Beyond Meat Inc (NASDAQ:BYND) surged over 30% after reporting better-than-expected quarterly revenue, and also forecasting a improved margins in the second-half of the year amid a turnaround plan. 

“Our 2024 plan includes taking steps to steeply reduce operating expense and cash use,” Beyond Meat CEO Ethan Brown said in a statement.

TJX Companies (NYSE:TJX) rose 0.6% after the retailer reported higher-than-anticipated sales growth in the fourth quarter, but offered up soft future guidance, which some on Wall Street believe is conservative and likely beatable.

Urban Outfitters (NASDAQ:URBN), meanwhile, slumped nearly 13% on disappointing earnings.

Ebay shines on earnings stage, Bumble stumbles after app backtrack

E-commerce site eBay (NASDAQ:EBAY) rose about 8% on stronger-than-expected earnings and guidance that likely paves the way for a return to mid-single-digit gross merchandise value growth in 2025, Deutsche Bank said in a note.

Online dating company Bumble (NASDAQ:BMBL) lost nearly 15% on weak revenue guidance amid plans to revamp its dating app to boost user growth. The stock will likely remain rangebound until there is "evidence of an improvement in the top of funnel in North America or the Bumble App relaunch accelerates revenue growth," UBS said in a note.

Crypto stocks surge as bitcoin tops $60K

Cryptocurrency stocks including Marathon Digital Holdings Inc (NASDAQ:MARA) and Coinbase Global Inc (NASDAQ:COIN) surged, with the latter hitting a new 52-week high, underpinned by a jump in bitcoin above $60,000. 

The move higher comes ahead of the crypto's halvening -- expected as soon as April - that occurs roughly every four years and cuts the reward for mining new blocks in half.

Halvening events in both 2012, 2016, and 2020 had preceded previous bull runs for BTC. 

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

Latest comments

a world without speculation and without algorithmic fraudulent trading is only possible ? Humans are far too greedy and aimed to break one another wealth. NO.
"a world without speculation" is a world w/out people.
Shut down extension. Good news???
Another triple digit lost whisked out of the system in broad daylight.  The "dip buyers" are out in force in the US Ponzi Scheme, laughingstock of the financial world.
The Dow 30 is 5-digits.
disgruntled shorts..gotta lov'em
Scam
ebay stronger than expected earnings - I'm not sure if that's a good sign of a strong economy or folk selling everything they have to raise cash to put the heating on and pay for some cereal for dinner
These articles don't age well 🤣🤣 markets recovers 5 hrs later
Articles aren't trying to predict the future, so can't "age well" nor age badly.
Spelling error.  Should be "Beyond Meat sears."  Or maybe, "Beyond Meat sores."
it also says in the article that it was up 55% whereas in fact it more than doubled it's market cap in just one day!!!  - and the earnings were actually pretty dismal quarter on quarter and year over year - so that's one of the weirdest fake pumps I've ever seen - methinks the tech bubble is about to burst
Bitcoin just hit an all time high. High inflation is here to stay.
no it didn't - it made a head and shoulders stopping at 64K
March 11 break down Buying puts- Everything will be sold-
where is the retreat tosay? is it gone ready?
How about that 10AM breaker fire?  Predictable enough for ya?  Another miracle "recovery" in the BIGGEST INVESTMENT JOKE IN THE WORLD.
He just might win the award, too!...
@mitchel you always brighten my day. Good luck to you today with your investments
The joke is on the bears
oh poor bears seems the retreat is over, just half day long?
It cost $834.2 billion in debt during Q3 to grow the US economy by $334.5 billion, or exactly $2.5 in debt for every $1 in GDP "growth." Can you imagine these figures without the FED liquidity injections??? WOW!!! I'm sure this is nothing though and stocks will be up by end of week...keep partying
Thanks for the statistics Stan. Always appreciated! I'm going to pass along my golden ticket to wealth for you and a solid retirement. It's a dividend stock that pays large! It's the foundation to my brokerage account. ZIM, look it up! It is an Israeli company. You have to pay 30% of your gains to Israel. I hope you're watching. I'm not going to repeat this information. Thanks Again!
Thunbs down trolls.
buy the pullback
Retreat huh, try massacre.
Down .25% ain't a massacre, Karen.
Tom Tom Tom you ig no rant
can't spell
Some people have difficulty with sentence structure also. 😉😝
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