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Stock Market News for Apr 17, 2024

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Market News

Wall Street ended mixed on Tuesday, driven by comments made by Fed officials. Interest rates were kept on hold since recent inflation figures did not meet expectations. Market participants were assessing strong earnings results. The Nasdaq Composite and the S&P 500 ended in negative territory, while the Dow finished in positive zone.

How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rose 0.2% or 63.86 points to close at 37,798.97. Notably, 11 components of the 30-stock index ended in positive territory, while 19 finished in negative zone.

The tech-heavy Nasdaq lost 19.77 points or 0.1% to close at 15,865.25.

The S&P 500 slid 0.2% or 10.41 points to end at 5,051.41. Of the 11 broad sectors of the benchmark, eight ended in positive territory, while two ended in the red zone. The Real Estate Select Sector SPDR (XLRE), the Utilities Select Sector SPDR (XLU), the Energy Select Sector SPDR (XLE) and the Materials Select Sector SPDR (XLB) fell 1.5%, 1.3%, 0.9% and 0.8%, respectively, while the Technology Select Sector SPDR (XLK) advanced 0.1%.

The fear-gauge CBOE Volatility Index (VIX) was down 4.3% to 18.40. A total of 11.48 billion shares were traded on Tuesday, higher than the last 20-session average of 11.05 billion. The S&P 500 posted 1 new 52-week high and eight new 52-week lows. The Nasdaq Composite registered 30 new 52-week highs and 362 new 52-week lows.

Fed Holds Rates Amid Inflation Worries

Federal Reserve Chair Jerome Powell, at an event in Washington, D.C. mentioned that it may take longer to bring inflation down to the central bank’s target of 2%. This could mean a delay in considering any decrease in interest rates. Powell stressed the importance of being patient and noted that recent inflation figures have not shown the desired improvement.

He remarked that until inflation shows more progress, “We can maintain the current level of restriction for as long as needed.” This marks a change, from his position, where he suggested the possibility of rate cuts this year. The Federal Reserve’s stance highlights the significance of being flexible and making decisions based on data when facing challenges while also ensuring stability.

Solid Q4 Earnings

UnitedHealth Group Incorporated (UNH - Free Report) reported first-quarter 2024 adjusted earnings of $6.91 per share, beating the Zacks Consensus Estimate of $6.63 per share. This health insurer generated total revenues of $99.8 billion, outpacing the Zacks Consensus Estimate of $99.25 billion.

Morgan Stanley (MS - Free Report) reported first-quarter 2024 adjusted earnings of $2.02 per share, beating the Zacks Consensus Estimate of $1.69 per share. This investment bank generated total revenues of $15.14 billion, beating the Zacks Consensus Estimate of $14.47 billion.

Commerce Bancshares, Inc. (CBSH - Free Report) reported first-quarter 2024 adjusted earnings of $0.86 per share, beating the Zacks Consensus Estimate of $0.80 per share. This bank holding company generated total revenues of $397.8 million, surpassing the Zacks Consensus Estimate of $385.9 million.

Consequently, shares of UnitedHealth Group, Morgan Stanley and Commerce Bancshares returned 5.2%, 2.5% and 1.5%, respectively. Each of these companies carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Economic Data

The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly reported that building permits for March increased to 1,458,000. The number for February was revised up to 1,523,000 from the previously reported 1,518,000.

Housing starts for March increased to 1,321,000. The number for February was revised up to 1,549,000 from the previously reported 1,521,000.

U.S. industrial production climbed 0.4% in March, reflecting the same growth as in February. Manufacturing output rose 0.5%. Capacity utilization was 78.2% in March.


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