Mahoney Asset Management CEO Ken Mahoney weighs in on the ‘great’ earnings season and the Federal Reserve’s expected moves.
U.S. stock indexes were little changed as traders await the Federal Reserve’s latest policy decision.
The Dow Jones Industrial Average fell 72 points, or 0.2%, while the S&P 500 index slipped 0.11% and the Nasdaq Composite index ticked up 0.1%. All three of the major averages finished at record highs on Tuesday with the Dow closing above 36,000 for the first time.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 35939.18 | -113.45 | -0.31% |
| SP500 | S&P 500 | 4625.18 | -5.47 | -0.12% |
| I:COMP | NASDAQ COMPOSITE INDEX | 15645.59834 | -4.00 | -0.03% |
The Federal Reserve concludes a two-day meeting and is expected to announce plans to begin tapering its asset purchase program as it looks to rein in inflation. The market expects the first rate hike to occur in July.
Ahead of the Fed, the yield on the 10-year note was down two basis points at 1.53%.
In economic data, the ADP Employment report showed private-sector payrolls added 571,000 workers in October, exceeding the 400,000 new jobs that analysts surveyed by Refinitiv were expecting. The October nonfarm payroll report is due out Friday.
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In stocks, Zillow Group Inc. is shutting down its home-buying business and plans to cut 25% of its workforce after posting an unexpected loss as home values fell below what the company paid. Shares have fallen 56% from their Feb. 16 record high through Wednesday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ZG | ZILLOW GROUP, INC. | 72.79 | -12.69 | -14.85% |
CVS Health Corp. hiked its full-year adjusted profit forecast as strong demand for COVID-19 vaccines and tests bolstered the company’s quarterly results. The pharmacy chain administered more than 11 million shots and more than 8 million tests last quarter.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| CVS | CVS HEALTH CORP. | 95.23 | +4.15 | +4.56% |
Activision Blizzard Inc.’s holiday-season outlook fell short of analysts’ expectations after the video game maker said two hit games would be delayed due to the recent leadership changes at the company.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ATVI | ACTIVISION BLIZZARD, INC. | 65.58 | -12.09 | -15.57% |
Mondelez International Inc., the maker of Oreo cookies and Sour Patch Kids, raised its full-year sales outlook as price increases and strong overseas demand helped earnings and revenue exceed Wall Street estimates. The company is planning to raise prices at the start of 2022.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MDLZ | MONDELEZ INTERNATIONAL, INC. | 63.00 | +1.64 | +2.67% |
Bed, Bath & Beyond Inc. announced a marketing collaboration with grocer Kroger Inc. in which Kroger will offer baby and home products carried by Bed Bath & Beyond through Kroger.com and a small-scale physical store pilot beginning next year. Bed Bath & Beyond also announced a $1 billion share repurchase program.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| BBBY | BED BATH & BEYOND, INC. | 22.41 | +5.66 | +33.79% |
Deere & Co. workers rejected a contract offer, continuing a three-week-old strike. The latest offer would’ve raised wages by 10% this year and 5% in 2023 and 2025 in addition to giving lump-sum bonuses in 2022, 2024 and 2026.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| DE | DEERE & CO. | 342.89 | -12.38 | -3.48% |
Eco-friendly sneaker maker Allbirds Inc. raised more than $300 million in its U.S. initial public offering, pricing 20.2 million shares at $15 apiece. The stock, which begins trading on Wednesday, will trade under the ticker BIRD.
In commodities, West Texas Intermediate crude oil fell $2.69 to $81.22 a barrel and gold slid $16.70 to $1,772.70 an ounce.
Overseas markets were mostly lower.
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European bourses traded mixed with France’s CAC 40 ticking up 0.17% while Germany’s DAX 30 and Britain’s FTSE 100 declined 0.05% and 0.43%, respectively.
In Asia, China’s Shanghai Composite index slipped 0.2% and Hong Kong’s Hang Seng index lost 0.3%. Japan’s Nikkei 225 was closed for holiday.
