Stocks closed mixed Thursday in a seesaw session driven by conflicting corporate earnings reports and a cloudy picture on the health of the U.S. economy.
Strong earnings from Caterpillar (CAT, +7.8%) helped the Dow Jones Industrial Average end the day in the green, rising 0.6% to close at 32,036. But a disappointing revenue forecast from Facebook parent Meta Platforms (META, -24.6%) after Wednesday's close weighed on the Nasdaq Composite. The tech-heavy index slumped 1.6% to finish at 10,792. The broader S&P 500, meanwhile, somewhat split the difference, closing off 0.6% at 3,807.
Markets got an early lift from a better-than-expected reading on third-quarter gross domestic product. The U.S. economy rebounded after two consecutive quarters of contraction to grow at an annual rate of 2.6% in Q3. That topped economists' estimates for annualized growth of 2.4%.
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 optimism was short-lived, however, as underlying components of the GDP report suggested that an economic slowdown remains the most likely scenario in 2023.
The Best Dividend Stocks You Can Count On
Thursday's session was full of twists and turns, and that should remind investors that heightened volatility remains the order of the day. Stocks had been grinding higher since mid-October on encouraging third-quarter earnings reports. Given that this was supposed to be the worst earnings season since the height of COVID-19 lockdowns, the market's bullishness over reports that turned out brighter than forecast made sense. But lackluster results from mega-cap technology companies Google parent Alphabet (GOOGL) and cloud-computing giant Microsoft (MSFT) earlier this week put an end to the good feelings. Meta Platforms only added to the dour mood. With Amazon.com (AMZN) and Apple (AAPL) set to report after Thursday's closing bell, tomorrow's session could be a real doozy.
Happily, investors looking to smooth out their returns in turbulent times have a number of options. Low-volatility exchange-traded funds are a cheap and easy way to own a diversified portfolio of stocks that tend to hold up better when the market is selling off. Dividend payers in defensive sectors, such as the best consumer staples stocks or the best Dow dividend stocks, will also stand patient investors in good stead. Folks who can maintain truly long horizons can't go wrong with the creme de la creme of dividend growth stocks. The S&P 500 Dividend Aristocrats is an index of companies that have raised their payouts for at least 25 consecutive years. Heck, two of the components extended their streaks in just the past couple of days. Have a look at the 65 best dividend stocks you can count on for reliable and rising dividends.
-
Dow Soars 493 Points in Fed-Fueled Bounce: Stock Market TodayNew York Fed President John Williams struck a dovish tone Friday, which eased Wall Street's worries over a potential December pause.
-
Dow Erases 717-Point Gain to End Lower: Stock Market TodayThe main indexes started the day with solid gains, but worries of an AI bubble weighed on stocks into the close.
-
S&P 500 Snaps Losing Streak Ahead of Nvidia Earnings: Stock Market TodayThe Dow Jones Industrial Average also closed higher for the first time in five days, while the Nasdaq Composite notched a win too.
-
Dow Trims Its Loss to 498 Points: Stock Market TodayMarkets are wondering more and more about returns on the enormous amounts of capital hyperscalers are investing in AI.
-
Dow Falls 557 Points to Start NVDA Week: Stock Market TodayThe Oracle of Omaha saw growth and value in certain corners of the stock market during the third quarter.
-
Investors Buy the Nasdaq's Big Dip: Stock Market TodayStocks are up and down again to end an up-and-down week ahead of big earnings announcements and the eventual return of regular economic data flow.
-
Dow Dives 797 Points as Government Opens: Stock Market TodayThe process of pricing and re-pricing realities old and new never stops, and next week promises to be at least as exciting as this week.
-
5 Core Stocks Every Investor Should Own In 2026 and BeyondCore stocks are solid, long-term investments that provide stable returns and steady growth within your portfolio. Here are 5 we like.
