The Dow Jones Industrial Average closed Friday's trading session 1% lower. Higher inflation numbers early Friday increased the odds of interest rates staying higher for longer.
The S&P 500 also fell 1% in at closing bell. The Nasdaq's fall was the greatest as the tech-heavy index plunged 1.7%. The small-cap Russell 2000 fell 1% as well.
Volume on the NYSE and Nasdaq was lighter, according to preliminary closing data.
Crude oil rose over 1% to trade at $76.51 a barrel.
The yield on the 10-year Treasury note rose 7 basis points to 3.95% after the personal consumption expenditures, or PCE, price index rose 0.6% in January and 5.4% from a year ago. Those readings were higher than expected, and fueled fears of continued rising rates.
Real spending rose 1.1% in January after declining in December. Good news is bad news as recession fears fade with a more robust GDP forecast for 2024. Meanwhile, that increases the likelihood of a longer period of high interest rates.
Comerica Chief Economist Bill Adams sees "the Fed raising the federal funds target to a peak level of 5.25%-to-5.50% in June, and holding it at that level until a first rate cut at the March 2024 decision."
In stock action, Chipotle Mexican Grill extended a slide and fell below the 200-day moving average. The fast-casual burrito chain has triggered the 7% sell signal as its Jan. 31 breakout fails.
Dow Jones Leaders On Watch
Among Dow stocks, Salesforce is in a cup-with-handle base nearing a buy point of 178.94. Shares of Apple sank back below the 200-day moving average.
Stocks Moving Today Outside Dow Jones
U.S. Stock Market Today Overview |
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|---|---|---|---|---|
| Index | Symbol | Price | Gain/Loss | % Change |
| Dow Jones | (0DJIA) | 32817.75 | -343.61 | -1.02 |
| S&P 500 | (0S&P5) | 3970.88 | -40.75 | -1.05 |
| Nasdaq | (0NDQC ) | 11397.68 | -196.03 | -1.68 |
| Russell 2000 | 187.50 | -1.78 | -0.94 | |
| IBD 50 | 22.93 | -0.22 | -0.97 | |
Last Update: 4 PM ET 2/24/2023 |
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MercadoLibre arose a whopping 20% after earnings. The Leaderboard stock is extended from a 1,095.44 entry. The Latin America e-commerce company is today's IBD Stock Of The Day.
Shares of Block surged 4% in strong volume after fourth-quarter earnings showed strong profits from CashApp.
Boeing plunged 5%, piercing its 50-day moving average. The aircraft company suspended its 787 Dreamliner deliveries due to concerns over its fuselage raised by the Federal Aviation Administration. Production of the long-haul aircraft had been suspended earlier from May 2021 to August 2022.
Legendary investor Warren Buffett's annual letter to investors is on watch on Saturday along with the fourth-quarter earnings release for Berkshire Hathaway.
Berkshire Hathaway was a net seller in its fourth quarter as interest rates started climbing, and the firm sold large portions of its holdings in Taiwan Semiconductor and U.S. Bancorp. BRKB is in a long cup with handle with a 321.42 entry.
Morgan Stanley analyst Joseph Moore upgraded Intel to equal weight from underweight after the chip bellwether cut dividends 66% earlier this week. Morgan Stanley's price target of 28 marks a 15% upside from current prices. Intel shares fell Friday despite the upgrade, and the stock remains depressed.
Software Stock Earnings On Deck
Some software leaders are reporting earnings next week.
Workday reports on Monday, with Snowflake and DoubleVerify on Wednesday. Dow Jones leader Salesforce is also due on Wednesday. WDAY formed a cup base with a 184.60 entry and may be working on a handle. SNOW is testing its 50-day line while DV is carving a handle to a cup with a 28.99 entry.
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