The major averages finished the week mixed with the Nasdaq Composite closing at a record high while the S&P 500 and Dow hit new highs this week ahead of the Federal Reserve’s decision next Wednesday regarding interest rate cuts. The Dow Jones Industrial Average fell 273 points, or 0.59%. The S&P 500 fell 3 points while the Nasdaq rose 98 points.
All three major averages closed at record levels Thursday, with the Dow closing above 46,000 for the first time, up 1.1% on the week. The S&P 500 rose 1.7% on the week, its best weekly performance since early August and its fifth positive week in six. The Nasdaq rose for a second straight week, up 2.1% on the week.
The economic data released this week supported a weakening economy while the consumer price index showed a hotter-than-expected month-to-month increase.
The yield on the benchmark 10-year Treasury rose 5 basis points to 4.07%, reversing a decline on Thursday. The yield on the 2-year Treasury rose 3 basis points to 3.56%, while 30-year Treasury rose 4 basis points to 4.69%.
Interest sensitive sectors like the utilities were modestly higher today while the financials had a good day on Thursday.
On the earnings front, Adobe was modestly lower even though earnings were better than expected and guidance was solid with strong AI growth. Software in general was lower today including Oracle, down 5% after jumping 35% on Wednesday on blowout guidance for AI demand.
To the upside, Microsoft rose nearly 2% as they agreed to a new ownership/partnership with OpenAI which clears the way for an eventual IPO for OpenAI. Chipmakers were higher including Micron up 3% on an upgrade Thursday with earnings later in the month. Tesla is breaking out on the charts up 5% today and up 5% yesterday on no news.
In the healthcare space, Pfizer and Moderna dropped 3% and 7% respectively as the Trump administration health officials are reportedly ready to link COVID vaccines to 25 child deaths amid potential eligibility review, according to Washington Post. This news could open the vaccine makers for a class action lawsuit.
In the commodity space, oil was higher on concerns of Russian output and attacks on oil production by Ukraine. Gold was modestly higher while bitcoin and other crypto currencies continue to shine.
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