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U.S. stocks are falling as investors await Fed's Powell

Published 02/06/2023, 09:43 AM
Updated 02/06/2023, 10:36 AM
© Reuters.

By Liz Moyer

Investing.com -- U.S. stocks were falling on Monday ahead of another busy week of earnings reports from companies including Walt Disney (NYSE:DIS), PepsiCo (NASDAQ:PEP), and Uber Technologies (NYSE:UBER).

At 10:32 ET (15:32 GMT), the Dow Jones Industrial Average was down 242 points or 0.7%, while the S&P 500 was down 1% and the NASDAQ Composite was down 1.3%.

Investors are also awaiting Federal Reserve Chair Jerome Powell’s appearance at an event Tuesday sponsored by the Economic Club of Washington, D.C., coming just a week after the Fed raised interest rates by one-quarter of a percentage point.

Powell said the Fed’s work to tame inflation isn’t done yet. Fighting inflation has been a priority of the Biden Administration in the last year, according to Treasury Secretary Janet Yellen, who appeared on ABC News on Monday morning ahead of President Joe Biden’s State of the Union speech, which is scheduled for Tuesday evening. Biden is expected to emphasize legislative and policy initiatives that have brought down inflation over the past year and created jobs.

Yellen said the economy remains on a path where a recession can be avoided. “What I see is a path in which inflation is declining significantly, and the economy is remaining strong,” she said.

Stocks have been rallying this year on the idea that the Fed is getting closer to ending its interest rate increases. Though stocks fell on Friday after an unexpectedly strong jobs report for January, the S&P 500 and Nasdaq were up for the week, 1.6% and 3.3%, respectively.

This week, investors are also expecting the University of Michigan’s preliminary consumer sentiment reading for February and data on jobless claims for last week. 

Shares of Dell Technologies Inc (NYSE:DELL) fell 4.3% after a report from Bloomberg that it was cutting 6,650 jobs, or about 5% of its global workforce, as weak PC demand hurts results. 

Shares of Tyson Foods Inc (NYSE:TSN) fell 4.9% after chicken and meat producer fell short of quarterly expectations on slowing demand and a decline in chicken prices. 

Oil reversed earlier gains. Crude Oil WTI Futures were down 0.8% to $72.79 a barrel, while Brent Oil Futures were down 0.4% to $79.64 a barrel. Gold Futures were up 0.2% to $1,880.

Latest comments

Talk about market manipulation, the entire financial system seems to be at the hands of one man, absolutely crazy. It also makes me curious about his portfolio.
No worries , the Fed will lie and so will companies on their earnings!!!
Computer trading ignores economics.
follow the bouncing ball.
Why is it that 1 man controls the entire financial system?
All of the improved efficiency over the past forty years and the labor market is tighter than it was forty years ago. Inflation not going away anytime soon.
Inflation is still super Hot! Take from Car Prices New and Used, Housing New and Pre owned, Materials on and on! I haven’t seen any relief in sight on streets. Some people up their are completely disconnected from Streets in my opinion.
Fact! Too many people read into the news rather then look at the actual facts right in front of them! Just like how they claim that inflation is only like 7%. I don't know about you, but I've seen housing up about 50%, gas up about 200%, food up about 200%, and the list goes on and on, and yet they continue to lie to try and downplay the situation so people continue to spend their hard earned money without thinking that we are in trouble and the mighty FED has everything under control when in reality they don't!
When you look at a month or year over uer it can look decent. What that ignore ia that lroces went up a insane amount and just levels out. Never dropping. Infaktions measurments can become ok but if lrices never drop everyone=poorer
we are green!!! shed all loses like a snake sheds it's skin. only green baby!!
Can't have 2 days of losses in the laughingstock of the investing world.  The FRAUD continues as another criminal miracle unfolds in broad daylight.  BIGGEST INVESTMENT JOKE IN HISTORY.
Besides you of course.
This is surprising ..usually stocks pump waiting for the FED. It could be that VIX indicates EXTREME FEAR.
Powell has lost the plot.
VIX Term Structure Signals Extreme Fear Ahead Of Powell Speech Tomorrow
Housing bubble collapse is going to be EPIC
Well this is a surprising shift. Stocks usually soar ahead of the FED. Perhaps its because of this: VIX Term Structure Signals 'EXTREME FEAR' Ahead Of Powell Speech Tomorrow??
Late afternoon miracle again....
what, Powell is gonna have another bowel movement, great.
Man of Nightmare, J.Powell. He speaks when needed to be silence, silence when needed to speak out. Transitory & Disinflation Powell. I don't want to see him anymore, neither the other investors are the same.
what would Jerome do ?
ogni giorno ce qualcosa o qualche scusa per sprofondare... neanche se scoprono l'eden qua vedremo un guadagno.. mi sono veramente rotto di sto mercato manipolato..
Kids are play with balloon. But China deliver cars as NIO, XPEV, TESLA and NIKOLA delivering trucks.
It is a lie. Nobody is waiting. Everyone is escaping with one's money.
Reuter is very good reporter 🤣🤣🤣
await last week, await this week!!
He spoke last week. I don't care what he wants to say this week
yellen says a recession can be avoided - these folk are living in cuckoo land -
the deepest yield curve inversion in history and a 15x interest rate increase in less than a year - these will crush the global economy whilst inflation remains sticky - with oil production tight and deglobalisation taking off with more funds being spent on ramping up WW3
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