Stocks opened higher Friday and continued to climb into the close, putting the lid on another strong week for the U.S. equities market. Today's upside came even as data showed consumer sentiment fell as inflation expectations climbed.
Shortly after the open, the University of Michigan said its consumer sentiment index fell for a fourth straight month in November, slipping to 60.4 from October's reading of 63.8.
"While current and expected personal finances both improved modestly this month, the long-run economic outlook slid 12%, in part due to growing concerns about the negative effects of high interest rates," the report stated. Both year-ahead and long-term inflation expectations rose in November too.
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.
Inflation was top of mind during Federal Reserve Chair Jerome Powell's speech on Thursday, where he said the central bank is "not confident" interest rates are high enough to bring inflation down to its 2% target. This sent stocks tumbling and had the S&P 500 and Nasdaq Composite snapping their longest daily win streaks in two years.
Stocks rebounded today, though. At the close, the S&P 500 was up 1.6% at 4,415, the Nasdaq was 2.1% higher at 13,798, and the Dow Jones Industrial Average had gained 1.2% to 34,283. All three indexes closed higher on the week, as well.
Plug Power spirals amid "unprecedented supply challenges"
The Nasdaq outperformed even as several tech stocks tumbled after earnings. Plug Power (PLUG), for one, plunged 40.5% after the fuel-cell maker reported a wider-than-expected third-quarter loss. Revenue of $199 million also fell short. In addition, Plug Power pulled its full-year guidance, citing "unprecedented supply challenges" in the North American hydrogen network.
"After 13 consecutive quarterly misses on adjusted earnings per share, we are struggling to find a positive catalyst, given the excessive cash burn rate and the importance of raising capital (in a challenging capital market environment) to fund its growth prospects," says CFRA Research analyst Matthew Miller, who downgraded PLUG to Sell from Hold.
Trade Desk (TTD) was another big post-earnings loser, slumping 16.7% after its results. While the digital ad company reported third-quarter earnings of 33 cents per share on $493 million in revenue – both figures higher than analysts were expecting – fourth-quarter guidance came in well below estimates.
The company told CNBC that the "transitory cautiousness from advertisers in certain verticals, such as U.S. auto and media/entertainment due to the strikes" was the reason for the weak outlook.
Cisco earnings, CPI, PPI on deck
Next week, Cisco Systems (CSCO, +1.1%) is the most notable tech name on the earnings calendar, with the networking equipment specialist set to report after Wednesday's close.
As for economic news, all eyes will be on next week's inflation data. The October Consumer Price Index (CPI) report will be released Tuesday morning, while the Producer Price Index (PPI) is due out Wednesday.
Related content
- Amazon Launches Virtual Healthcare Service for $9 a Month
- When Is the Next Fed Meeting?
- If You'd Put $1,000 Into Adobe Stock 20 Years Ago, Here's What You'd Have Today
-
Stocks Edge Higher With Nvidia, Fed in Focus: Stock Market TodayThe AI bellwether reports earnings after today's close, while Wall Street is keeping a cautious eye on President Trump's attacks against the Fed.
-
New Trump Tax Bill: Five Changes Homeowners Need to Know NowTax Changes Trump’s new tax legislation is reshaping how tax breaks for homeowners work.
-
Stocks Edge Higher With Nvidia, Fed in Focus: Stock Market Today
The AI bellwether reports earnings after today's close, while Wall Street is keeping a cautious eye on President Trump's attacks against the Fed.
-
President Trump Makes Markets Move Again: Stock Market TodayThe White House is moving ahead with plans to reshape the Federal Reserve and to buy shares in more sectors and stocks.
-
Stocks Struggle to Start Nvidia Week: Stock Market TodayAnother important week for the stock market starts on a risk-off note.
-
Dow Rips 846 Points to New All-Time High: Stock Market TodayFed Chair Jerome Powell seems ready to cut interest rates in the fall but will still rely on incoming economic data about inflation and employment.
-
S&P 500 Extends Losing Streak Ahead of Powell Speech: Stock Market TodayStocks continued to struggle ahead of Fed Chair Powell's Friday morning speech at Jackson Hole.
-
Tech Sells Off While Trump Stirs the Fed: Stock Market TodayWe've reached another important part of earnings season, though markets remain captivated by the president, the Fed, and interest rate policy.
-
Dow Retreats From a Record High: Stock Market TodayQuietly rising since April, Home Depot stock was conspicuously constructive Tuesday as high-profile tech names dragged equity indexes down.
-
Stocks Struggle Ahead of Busy Fed Week: Stock Market TodayThe minutes from the July Fed meeting will be released Wednesday, while Chair Powell will deliver a key speech at Jackson Hole on Friday.
