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Wall Street closed mixed on Monday as market participants awaited the release of a key inflation data. Meanwhile, investors ignored Moody’s move to cut its rating outlook on the United States. Moreover, the third-quarter earnings remained strong. The Dow ended in positive territory while both the S&P 500 and the Nasdaq Composite finished in negative zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.2% to close at 34,337.87. Notably, 15 components of the 30-stock index ended in positive territory, while 15 ended in negative zone. The blue-chip index closed at highest level since Sep 20. The tech-heavy Nasdaq Composite finished at 13,767.74, dropping 0.2% due to weak performance of large-cap technology stocks.
The S&P 500 fell 0.1% to finish at 4,411.55. Six out of 11 broad sectors of the benchmark ended in negative territory while five in positive zone. The Energy Select Sector SPDR (XLE) advanced 0.7%. On the other hand, the Utilities Select Sector SPDR and the Real estate Select Sector SPDR (XLRE) tumbled 1.2% and 0.8%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 4.2% to 14.76. A total of 9.34 billion shares were traded on Monday, lower than the last 20-session average of 10.97 billion. Advancers outnumbered decliners on the NYSE by a 1.08-to-1 ratio. On Nasdaq, a 1.03-to-1 ratio favored advancing issues.
Markets Wait for Key Inflation Data
Market participants are keenly waiting for the consumer price index and producer price index data. These two key inflation data are likely to provide investors a clue regarding the Fed’s decisions on the benchmark lending rate and overall monetary policies at December FOMC meeting.
Investors Ignore Moody’s Warning
On Nov 10, Moody’s Investors Service lowered its ratings outlook on the United States’ government to negative from stable citing growing risks of the nation’s gigantic fiscal deficit. “Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability.” However, Moody’s affirmed the long-term issuer and senior unsecured ratings of the United States at AAA.
Per the rating agency, “Continued political polarization within US Congress raises the risk that successive governments will not be able to reach consensus on a fiscal plan to slow the decline in debt affordability.”
Earlier, On Aug 1, Fitch Ratings downgraded the U.S long-term foreign currency issuer default rating to AA+ from AAA. The agency cited “expected fiscal deterioration over the next three years.” The rating agency remained concerned about a steady deterioration in standards of governance over the last 20 years. Notably, in 2011, S&P had downgraded the U.S. credit rating to AA+ from AAA.
Strong Q3 2023 Earnings Results
Roivant Sciences Ltd. (ROIV - Free Report) reported third-quarter fiscal 2023 adjusted loss per share of $0.26, narrower-than-the Zacks Consensus Estimate of a loss per share of $0.28. Revenues of $37.1 million, beat the Zacks Consensus Estimate of $26.68 million.
monday.com Ltd. (MNDY - Free Report) came out with quarterly earnings of $0.64 per share, beating the Zacks Consensus Estimate of $0.18 per share. posted revenues of $189.19 million for the quarter ended September 2023, surpassing the Zacks Consensus Estimate by 3.71%.
Fortrea Holdings Inc. (FTRE - Free Report) reported third-quarter fiscal 2023 adjusted earnings per share of $0.24, surpassing the Zacks Consensus Estimate of $0.18.
Image: Bigstock
Stock Market News for Nov 14, 2023
Wall Street closed mixed on Monday as market participants awaited the release of a key inflation data. Meanwhile, investors ignored Moody’s move to cut its rating outlook on the United States. Moreover, the third-quarter earnings remained strong. The Dow ended in positive territory while both the S&P 500 and the Nasdaq Composite finished in negative zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.2% to close at 34,337.87. Notably, 15 components of the 30-stock index ended in positive territory, while 15 ended in negative zone. The blue-chip index closed at highest level since Sep 20. The tech-heavy Nasdaq Composite finished at 13,767.74, dropping 0.2% due to weak performance of large-cap technology stocks.
The S&P 500 fell 0.1% to finish at 4,411.55. Six out of 11 broad sectors of the benchmark ended in negative territory while five in positive zone. The Energy Select Sector SPDR (XLE) advanced 0.7%. On the other hand, the Utilities Select Sector SPDR and the Real estate Select Sector SPDR (XLRE) tumbled 1.2% and 0.8%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 4.2% to 14.76. A total of 9.34 billion shares were traded on Monday, lower than the last 20-session average of 10.97 billion. Advancers outnumbered decliners on the NYSE by a 1.08-to-1 ratio. On Nasdaq, a 1.03-to-1 ratio favored advancing issues.
Markets Wait for Key Inflation Data
Market participants are keenly waiting for the consumer price index and producer price index data. These two key inflation data are likely to provide investors a clue regarding the Fed’s decisions on the benchmark lending rate and overall monetary policies at December FOMC meeting.
Investors Ignore Moody’s Warning
On Nov 10, Moody’s Investors Service lowered its ratings outlook on the United States’ government to negative from stable citing growing risks of the nation’s gigantic fiscal deficit. “Moody’s expects that the US’ fiscal deficits will remain very large, significantly weakening debt affordability.” However, Moody’s affirmed the long-term issuer and senior unsecured ratings of the United States at AAA.
Per the rating agency, “Continued political polarization within US Congress raises the risk that successive governments will not be able to reach consensus on a fiscal plan to slow the decline in debt affordability.”
Earlier, On Aug 1, Fitch Ratings downgraded the U.S long-term foreign currency issuer default rating to AA+ from AAA. The agency cited “expected fiscal deterioration over the next three years.” The rating agency remained concerned about a steady deterioration in standards of governance over the last 20 years. Notably, in 2011, S&P had downgraded the U.S. credit rating to AA+ from AAA.
Strong Q3 2023 Earnings Results
Roivant Sciences Ltd. (ROIV - Free Report) reported third-quarter fiscal 2023 adjusted loss per share of $0.26, narrower-than-the Zacks Consensus Estimate of a loss per share of $0.28. Revenues of $37.1 million, beat the Zacks Consensus Estimate of $26.68 million.
monday.com Ltd. (MNDY - Free Report) came out with quarterly earnings of $0.64 per share, beating the Zacks Consensus Estimate of $0.18 per share. posted revenues of $189.19 million for the quarter ended September 2023, surpassing the Zacks Consensus Estimate by 3.71%.
Fortrea Holdings Inc. (FTRE - Free Report) reported third-quarter fiscal 2023 adjusted earnings per share of $0.24, surpassing the Zacks Consensus Estimate of $0.18.
Consequently, shares of Roivant Sciences, monday.com and Fortrea Holdings climbed 2.7%, 10.5% and 9.6%, respectively. All three stocks currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.