Stock Market Today: Stocks End Lower Ahead of Powell Speech
Investors continued to grapple with Friday's strong jobs report and how it might impact the Fed's decision-making.
Stocks opened lower Monday and stayed that way through the close. Amid a bare economic calendar and just a smattering of earnings reports released ahead of the open, attention was focused on last Friday's stunning jobs report – and what it could potentially mean for the Federal Reserve's rate-hike plans going forward.
The January jobs report came in much higher than expected and the unemployment rate fell to its lowest point since 1969. This sparked concern that the Fed will have to continue raising interest rates to stamp out inflation.
"While there were some promising aspects of the jobs report – cooling wage growth and higher participation – it's impossible to ignore the fact that the labor market remains red hot," says Craig Erlam, senior market analyst at currency data provider OANDA. "Of course, no one will be surprised if we see huge revisions next month – we've seen some substantial ones recently after all – but for now, it's hard to argue that the easier policy move for the Fed is to keep hiking in 25 basis point increments."
From just $107.88 $24.99 for Kiplinger Personal Finance
Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues
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.
Wall Street could get some hints tomorrow as to what the central bank plans to do next, with Fed Chair Jerome Powell slated to participate in a moderated discussion at the Economic Club of Washington D.C.
In single-stock news, Dell Technologies (DELL, -3.0%) said it's laying off roughly 5% of its global workforce, equating to around 6,600 jobs, as "market conditions continue to erode," said Jeff Clarke, the PC maker's co-chief operating officer, in a note to employees. Meanwhile, Tyson Foods (TSN) fell 4.6% after the meat processor reported fiscal first-quarter earnings of 85 cents per share on $13.3 billion in sales, missing consensus estimates.
As for the major benchmarks, the Dow Jones Industrial Average slipped 0.1% to 33,891, the S&P 500 gave back 0.6% to 4,111, and the Nasdaq Composite finished 1.0% lower at 11,887.
The Best Gold ETFs to Buy
Gold gained ground today, rising nearly 0.2% to $1,879.50 an ounce. After trending lower for most of 2022, the precious metal has been on quite a run in recent months, up about 15% since early November.
"The recovery in gold has primarily been fueled by a weakening dollar and fading market expectations for a further prolonged Federal Reserve (Fed) rate hike cycle due to receding inflation pressures in the U.S.," says Adam Turnquist, chief technical strategist at LPL Financial. "Rising demand from foreign central banks, including the People's Bank of China (PBOC), has provided an additional tailwind for gold."
Although gold's rally has pushed the price of the precious metal into overbought territory – a move that sparked some profit-taking last week – Turnquist believes there could be more upside ahead. Continued gains would benefit gold stocks, and gold ETFs would also reap rewards.
-
Dow Rises 313 Points to Begin a Big Week: Stock Market TodayThe S&P 500 is within 50 points of crossing 7,000 for the first time, and Papa Dow is lurking just below its own new all-time high.
-
The $3,000 Retirement Mistake Millions Make Each Year (And How to Avoid It)A little oversight or automation can keep money in your pocket.
-
January Fed Meeting: Live Updates and CommentaryThe January Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
-
January Fed Meeting: Live Updates and Commentary
The January Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
-
If You'd Put $1,000 Into UPS Stock 20 Years Ago, Here's What You'd Have TodayUnited Parcel Service stock has been a massive long-term laggard.
-
How the Stock Market Performed in the First Year of Trump's Second TermSix months after President Donald Trump's inauguration, take a look at how the stock market has performed.
-
The December CPI Report Is Out. Here's What It Means for the Fed's Next MoveThe December CPI report came in lighter than expected, but housing costs remain an overhang.
-
How Worried Should Investors Be About a Jerome Powell Investigation?The Justice Department served subpoenas on the Fed about a project to remodel the central bank's historic buildings.
-
The December Jobs Report Is Out. Here's What It Means for the Next Fed MeetingThe December jobs report signaled a sluggish labor market, but it's not weak enough for the Fed to cut rates later this month.
-
If You'd Put $1,000 Into Lowe's Stock 20 Years Ago, Here's What You'd Have TodayLowe's stock has delivered disappointing returns recently, but it's been a great holding for truly patient investors.
-
If You'd Put $1,000 Into 3M Stock 20 Years Ago, Here's What You'd Have TodayMMM stock has been a pit of despair for truly long-term shareholders.
