Editor’s Picks, Stock News6:30 a.m.2024-04-26
The Dow Jones New York Stock Exchange index closed lower on Thursday (April 25) after the United States revealed gross domestic product (GDP) figures that expanded lower than expected and inflation figures that rose in the first quarter of 2024. In addition, The market is still under pressure from selling stocks with high registered capital. After Meta Company Platform reveals disappointing results
- The Dow Jones Industrial Average closed at 38,085.80 points, down 375.12 points or -0.98%,
- The S&P500 index closed at 5,048.42 points, down 23.21 points or -0.46% and
- The Nasdaq index closed at 15,611.76 points, down 100.99 points or -0.64%.
The US Department of Commerce revealed that GDP numbers for the first quarter of 2024 expanded only 1.6%, which is the lowest expansion in nearly 2 years and lower than analysts’ expectations of 2.4%. 1st estimate
In addition, the US Department of Commerce revealed that The Personal Consumption Expenditures (PCE) Price Index in 1Q/2024 rose 3.4%, higher than in 4Q/2023 which rose 1.8%. As for the Core PCE Index (Core PCE), which does not include the food category, and energy rose 3.7%, higher than in the 4th quarter of 2023 which increased 2.0%.
The US Department of Commerce has released the PCE index for the first quarter of 2024 before releasing the PCE index for March today (April 26). The PCE index is a measure of inflation that the Federal Reserve (Fed) values. Important because it can detect changes in consumer behavior. and covers the prices of goods and services more broadly than the Consumer Price Index (CPI).
Chris Larkin, managing director of trading and investing at E*Trade, said the data suggests the US economy is slowing but inflation is rising. (Stagflation), which may cause the Fed to encounter difficulties in conducting monetary policy. As for the short-term trend We expect these economic numbers to cause the market to face uncertainty.
The release of lower-than-expected GDP and higher inflation numbers in Q1 led investors to lower their expectations for the Fed to cut interest rates this year. CME Group’s latest FedWatch Tool indicates that investors expect the Fed to cut interest rates this year. Only one interest rate cut this year.
Communications services stocks fell the hardest among the S&P 500 stocks after Meta Platforms forecast second-quarter 2024 sales in the range of $365-$390 billion. The median value of that forecast is $37.75 billion. That was below the average analyst estimate of $38.3 billion.
Meta’s disappointing earnings forecast has investors worried. Before the disclosure of financial results of other companies in the technology group by Microsoft and Alphabet Earnings are due to be released after the market closes.
International Business Machine (IBM) shares fell 8.2% after the company reported lower-than-expected revenue for the first quarter of 2024. IBM shares also fell after the company announced it would acquire Hachicorp. (HashiCorp), a cloud software maker
Caterpillar stocks , a major US construction equipment maker, fell 7% after the company cut its sales forecast for the second quarter of 2024 due to a slowdown in demand for construction equipment.
For other economic data that was revealed last night. The U.S. Department of Labor said initial jobless claims fell 5,000 to 207,000 last week. and lower than analysts’ estimates of 214,000.
The National Association of Realtors (NAR) said the Pending Home Sales Index increased 3.4% in March. while analysts expected an increase of only 0.4%.
In this regard, the index of home sales contracts waiting to close sales It is a measure of the number of contracts for purchasing second-hand homes that have been signed but have not yet been closed. And it usually takes about 1-2 months from signing the contract to closing the sale.
By InfoQuest News Agency (26 Apr. ’24)
Tags: dowjones, Dow Jones, stock market, New York Stock Exchange
Tags: Dow Jones closes points GDP slows inflation surges InfoQuest
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