Stock Market Update: Wall Street Trading Mixed and Low-Key Before US Inflation Data
Today on Wall Street, things are relatively quiet as investors eagerly await the latest update on inflation coming on Wednesday, which is expected to be a key market mover for the week. The S&P 500 remained steady after pulling back slightly from its recent all-time high, while the Dow Jones Industrial Average dipped 0.3% and the Nasdaq composite edged up 0.4%.
Tech giant Oracle took a hit, falling 9.2% after reporting growth that missed analysts’ expectations. CEO Safra Catz highlighted the company’s record demand in artificial intelligence technology for their cloud business, which focuses on training generative AI models.
The AI sector has been a standout performer, driving significant growth in several companies’ stock prices. However, Oracle’s stock had already surged by 81% this year prior to Tuesday, setting high expectations for its latest profit report. C3.ai also saw a decline of 6.9%, despite reporting a smaller loss than anticipated for the quarter. They revised their forecast for the fiscal year, expecting to incur larger losses from operations.
Ahead of the inflation report on Wednesday, Treasury yields inched higher, with economists predicting similar increases to the previous month. This data will be key for the Federal Reserve’s decision-making process at their upcoming meeting, where many investors anticipate another interest rate cut to support the job market and maintain inflation around the 2% target.
While the Fed has been cutting its main interest rate, mortgage rates have remained stubborn and volatile, impacting the housing market. Homebuilder Toll Brothers saw a 5.4% decline in their stock, despite beating profit and revenue expectations for the quarter.
In positive news, Alaska Air Group’s shares soared 12.2% after raising their profit forecast for the current quarter, citing strong demand for holiday travel. They also announced a plan to buy back up to $1 billion of their stock. Similarly, Eli Lilly’s stock rose 1% after announcing increased dividends and a plan to buy back up to $15 billion of their stock, rewarding investors with cash.
Overseas, Chinese stock markets were mixed following lower-than-expected export data for November, with Shanghai rising by 0.6% and Hong Kong falling by 0.5%. Stay tuned for more updates as these market dynamics unfold!
