Stock market today: Dow, S&P 500, Nasdaq slip with Powell speech, Trump-led sweep in focus – Yahoo Finance

November 14, 2024

U.S. stocks saw post-election gains stall further on Thursday, with investors praising Federal Reserve Chairman Jerome Powell's remarks in which he said the central bank was in “no hurry” to cut interest rates. It fell as a result of what happened.

The market fell sharply following Chairman Powell's remarks. The Dow Jones Industrial Average (^DJI) fell 0.5%, or more than 200 points, and the S&P 500 (^GSPC) fell 0.6%. The Nasdaq Composite Index (^IXIC) fell about 0.7%, with the three major indexes having a mixed day.

Although the mood has subsided after the latest consumer inflation data sustained hopes for a December rate cut, stocks remain near recent record levels. high. But a survey of wholesale inflation showed prices were a little firmer than expected in October, raising new questions about the Fed's direction next year.

The focus will be on how the Fed and its chair view the development of inflation as investors assess the likelihood of interest rates returning to high levels for an extended period of time. In that regard, Powell emphasized the strength of the U.S. economy and said the Fed is “closely monitoring” inflation indicators to ensure they remain within acceptable limits.

read more: Impact of Fed Rate Cuts on Bank Accounts, CDs, Loans, and Credit Cards

Meanwhile, Republicans maintained a slim majority in the House of Representatives, giving President-elect Donald Trump and his party control of the “trifecta,” or unified power across Washington. This sweep will limit the president-elect's ability to pursue aggressive economic policies, which has fueled a ferocious post-election rally in stock prices.

The “Trump trade” is starting to show signs of fatigue in some parts of the market. Tesla (TSLA) shares fell more than 5% after Reuters reported that the Trump administration is considering eliminating the $7,500 EV tax credit for consumers.

Meanwhile, vaccine stocks including Moderna (MRNA) and Novavax (NVAX) fell after the close. According to reports President Trump plans to nominate anti-vaccine activist Robert F. Kennedy Jr. to lead the Department of Health and Human Services.

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Vaccine stocks drop following reports that RFK Jr. will be selected to lead HHS

Vaccine stocks fell to their close Thursday afternoon after Politico reported that President Donald Trump would nominate anti-vaccine activist Robert F. Kennedy Jr. to lead the Department of Health and Human Services.

Shares of Moderna (MRNA) and Novavax (NVAX) both fell more than 5% on the news, and vaccine maker Pfizer (PFE) also fell more than 2.5%.
Fed doesn't need to 'rush' to cut rates, Powell says

Yahoo Finance's Jennifer Schonberger reports:

Federal Reserve Chairman Jerome Powell said there is no need for the central bank to “rush” to lower interest rates because of the strong economy and that the Fed will “closely monitor” certain inflation indicators to ensure they remain within acceptable ranges. He said he would continue to do so. .

“The economy is not sending a signal that there is an urgent need to cut rates,” Powell said in prepared remarks for a speech in Dallas.

“The economic strength we are seeing now allows us to make prudent decisions.”

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Government contractor stocks fall on formation of “DOGE”

A new deal with President Trump is in the works.

Shares of government contractors fell on Thursday amid speculation that a new “DOGE” (Department of Government Efficiency) will look for areas to cut government spending. It's unclear exactly what action the newly formed department, headed by Elon Musk and Vivek Ramaswamy, will take.

But Musk has already proposed eliminating hundreds of existing agencies and cutting $2 trillion from the $6 trillion-plus annual budget.

And the market appears to be betting that some of these spending cuts will impact publicly traded government contractors. Shares of Science Applications International Corporation (SAIC), Booz Allen Hamilton (BAH), KBR (KBR) and Parsons Corporation (PSN) all fell more than 6% on Thursday.

Interestingly, Lockheed Martin (LMT) stock fell an even bigger 3%, perhaps reminding investors that not all companies that work with governments are created equal. And for now, the market doesn't expect Lockheed Martin to make any significant cuts in defense spending.
Two strong pieces of evidence on inflation make the Fed's 2025 rate cut path even more 'uncertain'

October inflation figures released this week showed little progress toward the Fed's 2% inflation target, raising questions about how far the Fed will cut rates in 2025.

The “core” consumer price index (CPI), which excludes more volatile food and gas prices, released on Wednesday showed prices rose 3.3% in October for the third consecutive month. And on Thursday, the “core” producer price index (PPI) revealed that prices rose 3.1% in October, up from 2.8% the previous month and faster than economists expected a 3% rise.

Taken together, these measurements further strengthen the picture of persistent and persistent inflation within the economy. Economists do not expect this data to change the Fed's outlook for December. And the market agrees. CME FedWatch Tools We currently see an almost 80% chance that the Fed will cut interest rates by 25 basis points at its December meeting.

However, the lack of recent progress on the inflation front could prompt the Fed to revise its Summary Economic Projections (SEP), which had expected four rate cuts of 1 percentage point through 2025. .

“While the PPI does not definitively change the Fed's accommodative bias, it does make the graph of the policy outlook more uncertain,” Nationwide financial markets economist Oren Krachkin said in a note to clients today. “We are expecting 75 [basis points] Cumulative Fed easing is scheduled through 2025, but risks appear to lean toward a slower pace of easing. ”

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President Trump plans to eliminate EV tax credit – Reuters

President-elect Donald Trump's administration plans to eliminate the $7,500 tax credit offered to consumers. According to a report by Reuters.

Following this report, the stock prices of Ford (F), General Motors (GM), and Tesla (TSLA) all fell.
Bitcoin rises significantly and remains above $88,000

Bitcoin (BTC-USD) pared earlier gains to exceed $88,00 per token by 12:30 pm ET.

The world's largest cryptocurrency has been at the center of Trump's trading and has facilitated movement in a range of assets since Donald Trump won the White House last week.

On Thursday morning, each token was trading around $91,000 after reaching new highs of over $93,000 in the previous session.

Year-to-date, Bitcoin is up about 100%.
Bob Iger says Disney “doesn't need more assets right now” to grow in a “disrupted media world”

Yahoo Finance's Alexandra Canal reports:

Disney (DIS) CEO Bob Iger doesn't think the company needs mergers and acquisitions to compete in streaming.

“We don't need any more assets at this point, both from a distribution perspective and from a content perspective. [a] We are a disruptor in the media world,” executives told investors on the company's fourth-quarter earnings call Thursday morning.

“In a sense, we've already integrated,” he said, citing the acquisition of 21st Century Fox.announced at the end of 2017. “And I think, as we've proven in the past, we're always going to look at opportunities and look for opportunities, but we're certainly not going to shy away from those opportunities…We're in many ways It has been strengthened.”

Disney shares rose on Thursday after the entertainment giant released better-than-expected guidance and reported better-than-expected quarterly results.

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Tesla falls 3% due to trade slump after Trump election

Tesla (TSLA) stock fell more than 3.5% Thursday as investors began taking profits from a huge rally in the “Trump Trade” favorite.

Thursday's decline comes on the heels of optimism that CEO Elon Musk's close relationship with the president-elect will ease regulations on self-driving cars, as Donald Trump arrived at the White House last week. Since the win, the stock is still up more than 25%.

Meanwhile, on Wednesday, the electric car giant announced its sixth recall this year. The company has recalled 2,400 Cybertruck pickup trucks due to a defective part that could cause a loss of power and increase the risk of a collision.
Tapestry soars 11% as Capri sinks as merger plans end

Tapestry (TPR) stock soared to an 11-year high Thursday after the parent company of Coach & Capri Holdings (CPRI) called off its merger plans.

The fashion companies mutually decided to abandon the $8.5 billion partnership, citing regulatory hurdles.

“The necessary closing conditions, including receiving the necessary U.S. regulatory approvals, are unlikely to be satisfied before February 10, 2025, which is outside the deadline of the merger agreement,” Capri said in a statement.

Capri's stock price fell 2%, while Tapestry's stock price rose 11%.
Disney rises 10% after profit beats, outlook beats expectations

Yahoo Finance's Alexandra Canal reports:

Disney (DIS) on Thursday reported fourth-quarter earnings per share and revenue that beat Wall Street expectations, as the company's direct-to-consumer business built on recent momentum and returned to profitability.

A strong outlook for the next two years also fueled investor optimism, with shares rising more than 10% in early trading following the results.

Click here for details.
Dow, S&P 500, NASDAQ rise on Powell's speech

Major averages opened mixed on Thursday as investors awaited Fed Chairman Jerome Powell's speech while gauging the Republican Party's overwhelming victory in Congress.

The Dow Jones Industrial Average (^DJI) rose 0.2% and the S&P 500 (^GSPC) rose slightly. The Nasdaq Composite Index (^IXIC) also rose 0.1%.

Republicans won the House majority on Wednesday, completing the package. 2024 election “trifecta”.

Investors are keeping an eye on the rise in the U.S. dollar index (DX-Y.NYB) and its potential impact on the market. Commodities such as oil and gold that are billed in dollars have been under pressure in recent days.

Bitcoin (BTC-USD) held above $91,000 on Thursday morning after rising above $93,000 in the previous session.

The world's largest cryptocurrency is at the center of Trump trading and has facilitated movement in a range of assets since Donald Trump's white victory last week.

The token is up more than 30% since Election Day.
Number of new unemployment insurance claims falls to lowest level since May

New jobless claims for the week ending Nov. 9 fell by 4,000 to 217,000, the lowest level since May. This number was lower than the 220,000 that economists had expected.
good morning. Here's what happened today: