Markets

Dow ends volatile week higher as earnings, Fed worries shake Investing.com


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By Yasin Ebrahim

Investing.com — The Dow closed higher on Friday, ending a turbulent week of wild swings as mixed quarterly earnings and an aggressive Fed rate hike continued to dominate investors’ attention.

He got 0.5%, that is, 176 points, 0.2%, and 0.6%.

Energy rose more than 2%, boosted by rising oil prices after Russia hinted at cutting oil prices to offset a price ceiling imposed by the European Union and G7 nations.

Hess Corporation ( NISE: ), Halliburton Company ( NISE: ) and APA Corporation ( NASDAQ: ) were among the top gainers, with the latter rising nearly 6% on the day.

In big tech, Alphabet (NASDAQ: ) was the biggest gainer, up nearly 2%, after Citi said YouTube’s deal to exclusively stream the National Football League’s Sunday Ticket could boost subscriber growth.

The deal “deepens YouTube’s overall content strategy in the key live sports vertical,” Citi said.

Meta (NASDAQ: ) , meanwhile, rose nearly 1% after reaching an $825 million settlement with users of its Facebook platform following a privacy lawsuit that alleged the social media shared user data with Cambridge Analytica.

Economic data shows that in-line inflation is also calming investor jitters about a rate-happy Fed.

The core price index (PCE), which excludes food and energy and is the Fed’s preferred measure of inflation, rose 0.2 percent in November, in line with estimates.

Signs of easing price pressures are a welcome step in the right direction, Stifel said, although he added that “the painfully slow pace of withdrawals continues to underscore the fact that there is more work to do [for the Fed].”

In consumer stocks, CarMax ( NISE: ) recouped some of its losses from the previous day after a quarter that fell short of estimates.

Tesla (NASDAQ: ) , however, struggled to hold on to pre-market gains, even as Elon Musk said he would not sell Tesla stock for 18 to 24 months. There are growing fears that the electric vehicle maker is facing a challenging period, especially in terms of demand following a price cut for its top-of-the-line electric vehicles.

“Based on higher inventory levels, recent price cuts and an overall production slowdown in China, it’s becoming clearer from our work that Tesla is likely to miss the Street’s lowered 4Q estimates with a softer 2023 trajectory,” Wedbush said in a note.

On the political front, the US House of Representatives on Friday passed a $1.7 trillion bill to fund government operations by a vote of 255 to 201, clearing the way for President Joe Biden to sign it into law.

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