Stock Market Today: Stocks End Mixed To Start Q2
Strong readings on the manufacturing data lowered expectations for a June rate cut and kept investors on edge.
Monday's good-news-is-bad-news manufacturing data sparked concern over the Federal Reserve's rate-cut plans and kept a lid on sentiment.
Several key events over the next few weeks could impact when the central bank may or may not start lowering the federal funds rate including this Friday's jobs report, which economists expect to show a still-strong labor market.
S&P Global kicked off this morning's relatively busy economic calendar with the release of its March Manufacturing Purchasing Managers Index (PMI) which measures manufacturing activity. The index slipped to 51.9 in March from February's 52.2, though it was the third straight month it was above the 50 mark that indicates expansion.
Sign up for Kiplinger’s Free E-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.
Meanwhile, the Institute for Supply Management said its Manufacturing PMI swung into expansion territory in March, arriving at 50.3% vs February's 47.8%. However, the data also showed that the ISM's Manufacturing Price Index – a measure of inflation – rose to an 18-month high of 55.8% last month.
Recent hotter-than-expected economic reports have pushed back expectations on the Fed's rate-cut plans and today's data continued that trend. According to CME Group's FedWatch Tool, futures traders are currently pricing in a 57% chance the first quarter-point rate cut will come in June, down from 64% one week ago. The odds of it happening in July are at 52%, up from last week's 48%.
What's more, commentary from central bank officials seems they're in no hurry to lower the federal funds rate if they don't need to. Indeed, in a moderated discussion last Friday, Fed Chair Jerome Powell said the central bank will be careful about its decision to cut interest rates "because it can be. The economy is strong: We see very strong growth."
AT&T stock slips after data breach news
In single-stock news, AT&T (T) fell 0.6% on news of a massive cybersecurity attack. In a statement, the telecommunications company said it is investigating the data breach which likely took place in 2019 or earlier and impacted 73 million former and current customers. (Here's what to do if you were affected by the AT&T breach.)
AT&T also said that the incident has not had "a material impact on its operations."
Buffett buys more Liberty SiriusXM shares
Elsewhere, Liberty SiriusXM Group Series C (LSXMK) dropped 1.4% even after regulatory filings revealed Warren Buffett's Berkshire Hathaway (BRK.B, -0.1%) bought 8.9 million shares over the final two weeks of Q1.
Form 4 filings also showed Buffett's holding company acquired 3.8 million shares of Liberty SiriusXM Group Series A (LSXMA, -1.3%), the class with voting rights. The two stocks have been a part of the Berkshire Hathaway equity portfolio since Q2 2016.
The full list of all the stocks Buffett bought and sold in the first quarter will be released next month.
As for the main indexes, the Dow Jones Industrial Average fell 0.6% to 39,566 and the S&P 500 shed 0.2% to 5,243. The Nasdaq Composite eked out a 0.1% gain to 16,396 on strength in several mega-cap stocks such as Alphabet (GOOGL, +3.0%) and Meta Platforms (META, +1.2%).
Related content
- Treasury Bills vs. Treasury Bonds: Know the Difference
- What Is Bitcoin Halving and Why Is It Important?
- Kiplinger's Earnings Calendar for This Week
Get Kiplinger Today newsletter — free
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.
With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at Schaeffer's Investment Research. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
Setting Objective Criteria for Employee Bonuses Aligned With Company Goals
When employees win, the company wins.
By Stephen Nalley Published
-
A Modern Guide to Money Etiquette: Gifts, Tips, Splitting Bills and More
What is modern money etiquette? The customs for splitting a restaurant check, purchasing a wedding gift, tipping and more have evolved. These guidelines can help.
By Emma Patch Published
-
Potential Ripple Effects of Taxing Unrealized Capital Gains
The proposed tax on unrealized gains would be limited to those with a net worth above $100 million, but some see a broad impact on markets and businesses.
By Brian Skrobonja, Chartered Financial Consultant (ChFC®) Published
-
Succession Musts: Thoughtful Planning and Frank Discussions
When it comes to passing on the family business, you don't want anyone to be surprised about who will control or inherit the business after the owner's death.
By David Handler, J.D. Published
-
How to Navigate Finances as a Blended Family
If you’re planning to become part of a blended family, consider these financial issues as you and your spouse start a new life.
By Ella Vincent Published
-
Here's How to Find Your Way Out of the Inherited IRA Maze
To navigate complex rules on inherited IRAs and RMDs, start by breaking down key terms and common scenarios. A clearer picture of your next steps will emerge.
By Evan T. Beach, CFP®, AWMA® Published
-
Stock Market Today: Stocks Rally on Strong Netflix Earnings
Mega-cap tech leads the charge as markets rise for a sixth straight week.
By Dan Burrows Published
-
Why American Express Earnings Have the Dow Stock Lower
American Express is the worst Dow Jones stock Friday after the payments giant reported a top-line miss in its third quarter. Here's what you need to know.
By Joey Solitro Published
-
CVS Stock Falls After Karen Lynch Ouster: What to Know
CVS stock is lower Friday after the embattled healthcare company said Karen Lynch is out as CEO, effective immediately
By Joey Solitro Published
-
Netflix Stock Jumps to the Top of the S&P 500 After Earnings. Here's Why
Netflix stock is spiking Friday after the streaming giant beat third-quarter expectations and gave an upbeat fourth-quarter outlook.
By Joey Solitro Published