Stocks' positive momentum faded to start the new week after Federal Reserve Chair Jerome Powell said the central bank is prepared to move "expeditiously" towards tighter monetary policy in order to fight inflation.
"We will take the necessary steps to ensure a return to price stability," Powell said in prepared remarks for a speech today at the National Association for Business Economics.
In addition to taking a more hawkish tone, the Fed chief warned that the war in Ukraine could continue to disrupt global supply chains and raise commodities prices at a time when inflation is already "too high."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The consumer discretionary sector took the hardest hit today, giving back 0.8%. Energy, on the other hand, jumped 4.0%, as U.S. crude futures surged 7.1% to $112.12 per barrel amid reports the European Union is considering a ban on Russian oil.
As for the major benchmarks, the Nasdaq Composite ended the day down 0.4% at 13,838, the Dow Jones Industrial Average shed 0.6% to 34,552 and the S&P 500 Index finished 0.04% lower at 4,461 – though a burst of late-day buying power brought all three indexes off their session lows.
Other news in the stock market today:
- The small-cap Russell 2000 fell 1% to 2,065.
- Gold futures eked out a marginal gain to settle at $1,929.50 an ounce.
- Bitcoin backtracked 2.5% to $41,176.50. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m.) "The market is going to stay in a trading range until we see crypto regulation clarity in the U.S.," says Charlie Silver, CEO of Permission.io, a cryptocurrency-enabled provider of e-commerce permission advertising. "The bull market will return when trillions of institutional dollars looking for a home have a regulatory green light."
- Boeing (BA, -3.6%) was the worst Dow Jones stock after a China Eastern Airlines Boeing 737-800 passenger jet crashed earlier today. There were 132 people on board the aircraft, which has a strong safety record. China's Civil Aviation Administration said it will investigate the crash.
- Alleghany (Y) surged 24.8% after Warren Buffett's Berkshire Hathaway (BRK.B, +2.1%) said it would buy the insurer for $11.6 billion in cash, or $848.02 per Y share. Berkshire's acquisition of Alleghany marks the holding company's biggest buyout since 2016.
- In other M&A news, private-equity firm Thoma Bravo said it will buy cloud-based connected planning platform Anaplan (PLAN, +27.7%) for $10.7 billion in cash, or $66 per PLAN share. The deal is expected to close in the first half of this year, and Anaplan CEO Frank Calderoni will maintain his role.
Another Inflation Hidey-Hole
We've spent much of the past few months touting the ways in which investors can protect their portfolios from inflation and the rising interest rates that come with it.
Among the many corners of the market that can help mitigate the effects of both higher prices and rising rates are reliable dividend payers, such as the Dividend Aristocrats, or defensive plays like consumer staples stocks.
But CFRA Research's thematic research team recently identified a group within the latter sector that looks particularly attractive right now: beverage stocks.
"Similar to other consumer staples companies, soft drink equities tend to be more defensive, value/income-oriented, have relatively stable sales and earnings, strong margins and free cash flow, as well as attractive dividends, which these companies have a history of increasing regardless of economic conditions," the CFRA team says.
Indeed, current market conditions make the investment case for beverage stocks "the strongest it has been in some time," they add.
Investors seeking safety may want to take a look at these top-rated names, which could be a great place to hide amid rapidly rising prices.
-
Dow Adds 238 Points as UnitedHealth, Caterpillar Pop: Stock Market TodayThe lack of a September jobs report didn't seem to worry market participants, with the data delayed due to the ongoing government shutdown.
-
Kiplinger Quiz of the Week: Test Yourself on the Week's StoriesQuiz The Nike stock price, Amazon's settlement and the shutdown were all covered by Kiplinger this week — but why? How much do you know about the week's financial news?
-
Dow Adds 238 Points as UNH, CAT Pop: Stock Market Today
The lack of a September jobs report didn't seem to worry market participants, with the data delayed due to the ongoing government shutdown.
-
Stocks at New Highs as Shutdown Drags On: Stock Market TodayThe Nasdaq Composite, S&P 500 and Dow Jones Industrial Average all notched new record closes Thursday as tech stocks gained.
-
S&P 500 Sees New Highs on Shutdown Day: Stock Market TodayMost of its components were in the red, but the S&P 500 Index still managed to hit a new intraday all-time high.
-
Government Shutdown to Delay Data, Including Key Jobs ReportWhile government shutdowns typically don't impact stock returns, they can delay the release of key economic data – including the monthly jobs report.
-
Stocks Close September on a High Note: Stock Market TodayA little bit of late risk-on behavior was enough to lift stocks into the green on the last day of September.
-
If You'd Put $1,000 Into Bank of America Stock 20 Years Ago, Here's What You'd Have TodayBank of America stock has been a massive buy-and-hold bust.
-
Investors Take Stock of Shutdown Talk: Stock Market TodayWhether we'll have a Jobs Friday this week depends on if we have a government shutdown in Washington.
-
If You'd Put $1,000 Into Oracle Stock 20 Years Ago, Here's What You'd Have TodayORCL Oracle stock has been an outstanding buy-and-hold bet for decades.
