U.S. stock markets closed mixed on Friday as the euphoria of interest rate cuts faded, but the Dow Jones Industrial Average (^DJI) managed to stay above the $42,000 level again, setting a new record closing price. .
The S&P 500 Index (^GSPC) fell 0.2% after the benchmark index closed at a record high on Thursday. The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, closed 0.4% lower.
Despite a slow Friday, major averages ended the week higher. Much of those gains were due to a market rally on Thursday as investors accepted Chairman Jerome Powell’s message that the Federal Reserve had cut rates sharply to support, not save, the economy. , this idea is supported by unemployment insurance claims data.
The euphoria exploded on Friday amid reminders that risks to growth may still exist. Wall Street continues to wonder if the Fed is slow to get the economy on a “soft landing” trajectory. Federal funds futures show traders are pricing in deeper rate cuts this year than policymakers’ “dot plot” plans suggest.
Read more: How Fed Rate Cuts Affect Bank Accounts, CDs, Loans, and Credit Cards
And this Fed-fueled euphoria is increasing the risk of a bubble, according to a top strategist at Bank of America. Michael Hartnett said investors were chasing profits, with stock prices currently pricing in levels of policy easing and earnings growth.
Intel (INTC) stock soared with less than an hour left in trading after the Wall Street Journal reported that semiconductor giant Qualcomm had approached the chipmaker about a possible acquisition in recent days. Qualcomm (QCOM) stock fell nearly 3%.
FedEx posted a sharp decline in profits, falling short of Wall Street expectations. The delivery company, which is an economic bellwether, suffered a slump in its stock price.
Elsewhere, Nike (NKE) stock soared after the sportswear maker, whose sales are under pressure, named a new CEO.
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Friday, September 20, 2024, 1:05 PM MST
Dow sets new record in strong week for stocks after Fed rate cut
US stock markets closed mixed on Friday, with the Dow Jones Industrial Average (^DJI) setting a new record and closing above $42,000 again.
The S&P 500 (^GSPC) fell 0.2%, just below its closing high.
The Nasdaq Composite Index (^IXIC), which has a high proportion of high-tech stocks, fell 0.4%.
The major averages ended the week higher. Much of that upward movement occurred during Thursday’s massive rally.
Intel (INTC) stock soared Friday afternoon after the Wall Street Journal reported that semiconductor giant Qualcomm had approached Intel (INTC) about a possible acquisition in recent days. Qualcomm (QCOM) stock fell nearly 3%.
Friday, September 20, 2024, 12:35 PM MST
Intel stock soars on report that Qualcomm approached chip maker for acquisition
Intel (INTC) stock soared more than 7% on Friday afternoon after the Wall Street Journal reported that semiconductor giant Qualcomm (QCOM) approached Intel (INTC) about a possible acquisition in recent days.
Qualcomm stock fell 4% on the news.
Friday, September 20, 2024, 12:15 PM MST
Former Snap design engineer says new glasses are ‘obviously bad’
Yahoo Finance’s Laura Bratton reports:
One of Snap Inc.’s (SNAP) own former employees thinks the company’s augmented reality glasses are “bad.”
Sterling Crispin, an engineer who previously designed the glasses, slammed the product in a post on X (formerly Twitter) this week.
“I worked on these at Snap for about a year, and I have a million negative things to say about the experience and the device,” Crispin wrote about Snap’s AR glasses. ”
Click here for details.
Friday, September 20, 2024, 11:30 a.m. (MST)
Bowman, an opponent of the Fed, wants a smaller rate cut because “we haven’t met our inflation target yet.”
Yahoo Finance’s Jennifer Schonberger reports:
He was the only opponent of a big Fed rate cut, saying that because inflation still hasn’t fallen to the central bank’s 2% target, “a smaller first step in this process would have been preferable.” ” he said.
“The Committee’s major policy actions risk being interpreted as a premature declaration of victory for its price stability mission,” Federal Reserve President Michelle Bowman said in a statement Friday. “I think so,” he said.
“We still haven’t met our inflation target.”
Click here for details.
Friday, September 20, 2024, 10:42am MST
Lennar CEO believes Fed rate cuts will boost confidence in housing market
Lennar (LEN) CEO Stuart Miller says lower interest rates and subdued inflation will boost confidence in the depressed housing market after the Federal Reserve’s 50 basis point interest rate cut. I’m thinking.
“Lower interest rates and lower inflation are creating affordability that will give more households access to first-time homeownership and pre-purchasing,” Miller said on the company’s third-quarter earnings call.
His comments came after Lennar reported Thursday that quarterly home orders and home sales gross margins were lower than analysts expected for the fiscal third quarter, which ended Aug. 31. Lennar stock fell 4% on Friday on the news. The SPDR S&P Home Builders ETF (XHB) fell 1%.
The combination of high mortgage rates and home prices over the past few years has reduced the desire to buy a home. Mortgage interest rates reached around 7% earlier this year, but have now fallen significantly. The average interest rate on a 30-year fixed mortgage fell by about a tenth Thursday to 6.09% from 6.2% the previous week, according to Freddie Mac.
Meanwhile, the Fed cut interest rates this week and signaled two more cuts this year.
“For the past two years, strong demand from incentives and mortgage rate buybacks has driven the new home market, but we expect an even stronger and broader demand cycle as interest rates fall,” the executive added. .
Friday, September 20, 2024, 10:40am MST
Why major retailers are experimenting with smaller stores
From Edwin Roman of Yahoo Finance:
Companies like Target (TGT), Ulta Beauty (ULTA) and Macy’s (M) are shifting their focus to smaller stores.
Small-format stores are scaled-down versions of big-box retailers, providing consumers with an efficient, convenient, and localized shopping experience. According to RJ Hottovy, head of analytics and research at Placer.ai, there are several reasons why retailers pursue a small store strategy.
Click here for details.
Friday, September 20, 2024, 9:59am MST
Dow turns positive as stock prices hover around record highs
The Dow Jones Industrial Average (^DJI) rose into green territory on Friday afternoon, hovering near all-time highs.
The major averages opened slightly lower Friday morning after the S&P 500 (^GSPC) and Dow Jones Industrial Average closed at new all-time highs.
By nearly 1 p.m., ET shares had pared some of their morning losses. However, the S&P 500 and the tech-heavy Nasdaq Composite Index (^IXIC) remained in red territory.
Friday, September 20, 2024, 9:45am MST
Apple iPhone 16 and iPhone 16 Pro review: Camera controls and big screen, Apple Intelligence isn’t ready yet
Yahoo Finance’s Dan Howley reports:
Apple’s (AAPL) iPhone 16 and iPhone 16 Pro lineup launches on September 20th, offering several updates that might make it worth upgrading if you have an older iPhone. There’s a new camera button, improved camera performance, a larger screen on the Pro model, improved battery life, and more.
I’ve been using both the iPhone 16, which starts at $799, and the iPhone 16 Pro, which starts at $999, for a while. If you have an older iPhone, you’ll probably appreciate the improvements on the new phone. But the biggest upgrade to Apple’s latest iPhones is the company’s Apple Intelligence platform.
Click here for details.
Friday, September 20, 2024, 9:07am MST
Shares of President Trump’s media company fall as lock-up period ends
Trump Media & Technology Group (DJT) stock hit a new low on Friday after the company’s six-month lock-up period ended.
As of Thursday, former President Donald Trump and other officials were allowed to sell shares in the social media company for the first time since it went public in March.
Trump, who owns more than half of the company, recently said he would not sell any of his stock.
“I have no intention of selling,” President Trump said at a press conference last week. “I love it. I use it as a way to get my words across.”
Stock prices are volatile and often move in conjunction with movements related to Republican presidential candidates. Shares fell as much as 5% on Friday.
Friday, September 20, 2024, 8:36am MST
Utilities outperform while other markets slump
Utilities (XLU) rose 1.5% during market trading on Friday, while the rest of the sectors were either flat or down.
Technology stocks (XLK) fell 0.9% after fueling the market’s massive rally in pre-market trading.
On Friday, the S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI) fell from their all-time highs.
Utilities rose above Friday
Friday, September 20, 2024 8:15am MST
President Trump continues to slam Fed over interest rate cuts: ‘This was a political move’
Yahoo Finance’s Jennifer Schonberger reports:
Republican presidential candidate Donald Trump has continued to criticize the Federal Reserve even after implementing a massive 0.5 percentage point interest rate cut with less than two months until the November election.
“This is really a political move,” the former president said in an interview with Newsmax on Thursday.
Click here for details.
Friday, September 20, 2024, 7:51am MST
Constellation Energy soars to record high after deal to sell nuclear power to Microsoft
Constellation Energy (CEG) shares rose on Friday after the company announced plans to restart its Three Mile Island (TMI) nuclear reactor and sell power to Microsoft (MSFT) for data centers. It soared to an all-time high.
Wall Street had expected Constellation to strike a deal with one of the biggest technology companies this year as the company seeks more energy to operate its technology infrastructure amid the artificial intelligence boom. .
Constellation purchased the TMI Unit 1 reactor in Pennsylvania in 1999. The reactor is located next to reactor No. 2, which shut down after a partial meltdown in 1979.
“TMI Unit 1 is a completely independent facility and its long-term operations were not affected by the Unit 2 accident,” Constellation said in a statement Friday.
Before Unit 1 was shut down for financial reasons in 2019, the plant had a generating capacity of 837 megawatts, enough to power more than 800,000 average homes, the company said. said.
Constellation Energy rose as much as 15% on Friday. The stock price has increased more than 100% since the beginning of the year.
Friday, September 20, 2024, 6:46am MST
Nike stock rises 7% after CEO change
Nike (NKE) stock soared Friday after the sneaker and sports apparel giant announced plans to step down as CEO John Donahoe. He will be succeeded by Elliott Hill, the company’s former president of consumer and markets, effective October 14.
Wall Street analysts welcomed Hill’s return after leaving Nike in 2020, sending the company’s stock up more than 7% in early trading.
As Yahoo Finance’s Brooke DiPalma reports, this leadership change means that Nike’s board of directors, which includes founder Phil Knight, former longtime CEO Mark Parker, and Apple CEO Tim Cook, will The decision was made after Mr Donahoe decided it was appropriate to focus on improving the company and rebuilding relationships that had been abandoned. The same is true for Foot Locker (FL).
Click here for details.
Friday, September 20, 2024, 6:30 a.m. (MST)
Stock prices retreat from all-time highs as Fed interest rate cuts fade
Stocks fell slightly in early trading on Friday, retreating from all-time highs for the S&P 500 (^GSPC) and Dow Jones Industrial Average (^DJI).
The tech-heavy Nasdaq Composite Index (^IXIC) also fell after a monster rally earlier in the day following the Federal Reserve’s big interest rate cuts.
Friday’s market euphoria faded after delivery giant FedEx (FDX), the bellwether of the U.S. economy, reported disappointing quarterly results Thursday night.
FedEx shares fell in early trading.
