The stock market kept investors on edge Thursday as markets bounced between positive and negative territory throughout the day.
Stocks initially opened lower as investors heard news that Liz Truss resigned as the United Kingdom's prime minister after a short and tumultuous tenure. However, the markets quickly turned higher amid well-received earnings reports from telecom AT&T (T, +7.7%) and tech giant International Business Machines (IBM, +4.7%).
Not all stocks rose after earnings, though, with Tesla (TSLA) slumping 6.7% after the electric car maker said it will likely miss its 2022 deliveries target, blaming "an increase in the cars in transit at the end of the year."
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.
But the market's midday momentum couldn't be maintained, with stocks reversing course again around lunchtime. The Dow Jones Industrial Average ended the day down 0.3% at 30,333, while the S&P 500 Index (-0.8% at 3,665) and the Nasdaq Composite (-0.6% at 10,614) also chalked up modest losses.
"Quickly looking ahead to tomorrow, it is options expiration so be on the lookout for some additional volume and volatility around the open and the close," says Michael Reinking, senior market strategist at the New York Stock Exchange. "Earnings will once again be in focus. There is no economic data in the U.S., but overnight we get Japan inflation, U.K. retail sales and European Union (EU) consumer confidence." Included in those earnings reports are social media firm Snap (SNAP), which reports tonight, and credit card company American Express (AXP), which will unveil its results ahead of tomorrow's open.
Are Stocks Cheap Enough to Buy?
Are stocks cheap enough to start buying? That's a question many investors may be asking themselves following the S&P 500's nearly 20% decline over the past 12 months.
Answering that question is not an easy task. On one hand, the forward price-to-earnings (P/E) ratio for the S&P 500 is at its lowest point since the March 2020 crash, and technical indicators are pointing to more short-term upside for stocks. But on the other, signs are suggesting the volatility seen throughout 2022 will continue and the stock market has yet to hit a bottom.
"We anticipate that financial markets are likely to continue to trade day-to-day in reaction to economic reports and/or comments by Fed officials," says Scott Wren, senior global market strategist Wells Fargo Investment Institute. "We advise to exercise patience in the near term, and expect potential better opportunities in the broader equity market next year." Read on as we explore what this all means for investors looking for bargains in today's market.
-
AI Appliances Aren’t Exciting Buyers…YetThe Kiplinger Letter Artificial intelligence is being embedded into all sorts of appliances. Now sellers need to get customers to care about AI-powered laundry.
-
Ask the Editor: IRAs, 401(k)s and RMDsAsk the Editor In this week's Ask the Editor Q&A, Joy Taylor answers questions on IRAs, 401(k)s and required minimum distributions
-
Got $100 to Gamble? These Penny Stocks Could Be Worth the RideVolatile penny stocks are high-risk plays with potentially high rewards. If you have $100 you can afford to lose, these three names are worth a look.
-
Dow Adds 646 Points, Hits New Highs: Stock Market TodayIt was "boom" for the Dow but "bust" for the Nasdaq following a December Fed meeting that was less hawkish than expected.
-
Dow Rises 497 Points on December Rate Cut: Stock Market TodayThe basic questions for market participants and policymakers remain the same after a widely expected Fed rate cut.
-
JPMorgan's Drop Drags on the Dow: Stock Market TodaySmall-cap stocks outperformed Tuesday on expectations that the Fed will cut interest rates on Wednesday.
-
Stocks Slip to Start Fed Week: Stock Market TodayWhile a rate cut is widely expected this week, uncertainty is building around the Fed's future plans for monetary policy.
-
Stocks Keep Climbing as Fed Meeting Nears: Stock Market TodayA stale inflation report and improving consumer sentiment did little to shift expectations for a rate cut next week.
-
Crypto Trends to Watch in 2026Cryptocurrency is still less than 20 years old, but it remains a fast-moving (and also maturing) market. Here are the crypto trends to watch for in 2026.
-
Small Caps Hit a New High on Rate-Cut Hope: Stock Market TodayOdds for a December rate cut remain high after the latest batch of jobs data, which helped the Russell 2000 outperform today.
-
UNH Sparks a 408-Point Surge for the Dow: Stock Market TodayThe best available data right now confirm both a slowing employment market and a December rate cut, a tension reflected at the equity index level.
