U.S. stocks held steady on Thursday, pausing after hitting new record highs in the previous session, as investors cheered chipmaker Arm's prospects and looked for fresh impetus in the company's latest results.
The S&P 500 (^GSPC) hovered around the flat line after the key benchmark closed just a few points shy of 5,000 for the first time ever. The Dow Jones Industrial Average (^DJI) opened slightly higher but later fell about 0.3%, while the tech-heavy Nasdaq (^IXIC) rose 0.3%
Stocks rallied as robust economic data and positive earnings lifted sentiment on Wall Street and helped push the benchmark S&P 500 near key psychological levels. But some investors question whether the gains can be sustainable given the concentrated group of megacaps driving them.
Shares of Arm (ARM) rose more than 55% after a strong sales outlook, raising hopes that AI and technology will continue to buoy the market. The chipmaker gave a surprisingly optimistic forecast due to its expansion into new areas. There was also cheer as shares of Disney (DIS) rose more than 11% as investors welcomed a rise in profits and deals with Taylor Swift and Fortnite maker Epic Games.
Meanwhile, traders have trimmed their bets on a rate cut in March as central bankers urge caution. Richmond Fed President Tom Barkin will add his comments on Thursday, while the weekly jobless claims report later could also influence policy expectations given December's blockbuster jobs report.
Read more: What the Fed's rate decision means for bank accounts, CDs, loans and credit cards
Elsewhere, concerns about deflation in China flared again as data showed consumer prices in the world's second-largest economy fell by the most since 2009 amid the global financial crisis.
The warning from Danish shipping giant Maersk (AMKBY) of a slowdown in freight traffic also unsettled investors. Its shares plunged 15% after the company said it would suspend stock buybacks.
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- Thu, Feb 8, 2024 at 10:55am CST
Stocks mixed, Nasdaq hits 52-week high
Stocks were mixed on Thursday. The Nasdaq Composite (^IXIC) hit a 52-week high at 11:45 a.m. Eastern Time as shares of Marvel (MRVL), Global Foundries (GFS) and Lululemon (LULU) all rose more than 3%.
The S&P 500 (^GSPC) traded just below zero after the key benchmark closed just a few points below the 5,000 mark for the first time ever on Wednesday.
The Dow Jones Industrial Average (^DJI) opened slightly higher but fell 0.3% in morning trading.
Thu, February 8, 2024 at 10:00 a.m. CST
NYCB stock is reeling amid the lender's efforts to boost confidence
New York Community Bank (NYCB) shares were volatile Thursday morning as investors took stock of the lender's recent efforts to boost confidence.
As Yahoo Finance's David Hollerith points out, the bank released a financial update on Wednesday, announced the appointment of a new chief executive, Alessandro “Sandro” DiNello, and held a call with analysts to boost confidence.
“We have seen virtually no outflow of deposits from our branches,” DiNello told analysts on Wednesday. The former bank examiner said that “building trust” with Wall Street regarding NYCB’s deposits and liquidity will be the bank’s top priority going forward.
The stock fell as much as 7% at the market open on Thursday. Shares have fallen about 56% since late January, when the lender cut its dividend and posted a surprise loss.
Read more here.
Thu, February 8, 2024 at 9:15 am CST
Oil rose 2% on tensions in the Middle East and a lower U.S. production forecast
Crude oil futures opened higher on Thursday after the US killed a militant commander in Iraq and Israel rejected a Hamas ceasefire proposal.
West Texas Intermediate (CL=F) gained about 2%, trading above $75 a barrel, while Brent futures (BZ=F) also gained about the same amount, hovering above $80 a barrel.
“Red Sea geopolitical risk is returning to crude oil,” said Dennis Kissler, senior vice president at BOK Financial.
Houthi rebels supporting the Palestinians have targeted ships, prompting major cargo companies to avoid the Red Sea region, which is linked to the Suez Canal, a key route between Asia and Europe.
Recent data from the Energy Information Administration (EIA) showed a decline in both distillate and gasoline inventories. The sharp decline signals higher demand and helps maintain upward pressure on crude oil prices.
The EIA also lowered its domestic production forecast for 2024, predicting that it would not reach December 2023's record levels until February 2025.
Thu, Feb 8, 2024 at 8:34am CST
Stocks were little changed as the S&P nears 5,000
Stocks opened near the zero line on Thursday after hitting a new record high in the previous session.
The S&P 500 (^GSPC) slipped nearly 0.1% after the key benchmark closed just a few points below the 5,000 mark for the first time ever.
The Dow Jones Industrial Average (^DJI) opened slightly higher, while the tech-heavy Nasdaq (^IXIC) touched flat.
Disney (DIS) shares rose as much as 1% after the company reported narrower-than-expected losses in its entertainment division.
The entertainment company also announced that its new over-the-top (OTT) streaming service ESPN will launch in fall 2025.
Thu, February 8, 2024 at 10:00 a.m. CST
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