Stocks closed lower Wednesday with investors' anxiety ramping up ahead of tomorrow's highly anticipated inflation update. But while the main indexes churned in negative territory, there was plenty of green tape to be found – including in the cryptocurrency space, where Bitcoin boomed to its highest level in two years.
There was little to "spark a fresh wave of enthusiasm" before tomorrow morning's release of the Personal Consumption and Expenditures (PCE) price index, says Susannah Streeter, head of money and markets at Hargreaves Lansdown.
The data, which tracks consumer spending, is the Fed's preferred measure of inflation, and it's garnering more attention than usual this time around following recent hot readings in the Consumer Price Index (CPI) and the Producer Price Index (PPI).
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 January PCE index is "expected to show that inflation is being stubborn, with a small uptick expected," Streeter adds, continuing a "bumpy" path down from sky-high price increases.
Bitcoin hits highest level in two years
While inflation is top of mind for investors, there were plenty of headlines today to capture Wall Street's attention. Bitcoin prices, for one, topped out above the $61,000 level for the first time since November 2021.
Gautam Chhugani, senior analyst of Global Digital Assets at Bernstein, says this latest surge came as bitcoin ETFs (exchange-traded funds) have seen an "unprecedented" amount of net inflows, bringing in $1.1 billion over the past two days.
Whatever the catalyst, the positive price action had a halo effect on several crypto-related stocks, with Marathon Digital Holdings (MARA, +2.4%) and MicroStrategy (MSTR, +10.5%) among the day's biggest gainers.
Beyond Meat surges after earnings
As for single stocks, Beyond Meat (BYND) was a big mover after the plant-based protein maker reported earnings, surging 30.7%. While the company reported a wider-than-expected loss of $2.40 per share, revenue of $73.7 million beat analysts' estimates.
Additionally, CEO Ethan Brown said in the earnings call that Beyond Meat is taking "major steps" to return to growth, including "a steep reduction in operating costs and cash use." Indeed, at the end of 2023, the company said it is cutting its global workforce by 19%.
Still, most analysts are skeptical of Beyond Meat. Of the 14 covering the consumer staples stock tracked by S&P Global Market Intelligence, six say it's a Hold, four have it at Sell and four rate it a Strong Sell. This works out to a consensus Sell recommendation.
As for her Sell rating on BYND, Argus Research analyst Taylor Conrad says that while "recent actions will help," increased competition and declining demand for plant-based protein will continue to create challenges for the company.
UnitedHealth drags on Dow after WSJ report
Elsewhere, UnitedHealth Group (UNH) was the worst Dow Jones stock Wednesday, tumbling 3.0%. The stumble comes after a report in The Wall Street Journal revealed the Justice Department has opened an antitrust investigation into the healthcare insurance giant.
At roughly $498 a share, UNH has the greatest weighting of all 30 stocks in the price-weighted Dow Jones Industrial Average, and so it more than contributed to the blue chip benchmark's 0.1% decline to 38,949. The S&P 500 finished down 0.2% at 5,069, while the Nasdaq Composite slipped 0.6% to 15,947.
Related content
- What to Do With Your 401(k) When You Leave Your Job
- Pharmacy Disruptions Are Ongoing In Aftermath of UnitedHealth's Cyberattack
- Wendy's Teases "Uber-Style" Surge Pricing
-
Choose a Beneficiary for Your Estate Plan: It's Not 'Duck, Duck, Goose'Choosing a beneficiary for your 401(k), insurance policy or similar assets is crucial for estate planning. Here is how to do it, and six pitfalls to avoid.
-
T-Mobile's Free iPhone 17 Deal: A Smart Switch or a Hidden Catch?Receive a free iPhone 17 when you switch to T-Mobile. We'll explain whether the deal is worth it.
-
How an Expired Passport Thwarted Blackmail (and What Other Important Documents You Should Keep)An optometrist produced his expired passport to foil a blackmail attempt by the daughter of a former employee. After proving he was out of the country on the date of a forged diary entry, he took it a step further.
-
Optimize, Grow, Retain: The Power of Annual Client ReviewsFinancial advisers can use annual reviews to help enhance client outcomes, strengthen relationships and build their practice.
-
I'm a Real Estate Investing Pro: This Is What Investors Should Know About Truck Stop InvestmentsTruck stops might seem like good investments, but they can actually be a risky gamble due to unstable fuel prices, unreliable operators and coming changes in transportation. Instead, consider safer options like industrial or residential properties.
-
How Digital Platforms Are Changing the Way You Invest in GoldInvesting in gold is easier than ever thanks to digital platforms. Learn how online tools are lowering costs, increasing transparency and making gold accessible to all investors.
-
Stocks Rise to Start Fed Week: Stock Market TodayThe Nasdaq Composite and S&P 500 hit new record closing highs as Wall Street awaits the Fed's next rate cut.
-
Don't Disinherit Your Grandchildren: The Hidden Risks of Retirement Account Beneficiary FormsStandard retirement account beneficiary forms may not be flexible enough to ensure your money passes to family members according to your wishes. Naming a trust as the contingent beneficiary can help avoid these issues. Here's how.
-
This Is How Life Insurance Can Fund Your Dreams NowBeyond a death benefit, life insurance can provide significant financial value and flexibility through 'living benefits' while you are still alive, helping with expenses like education, business ventures or retirement.
-
Potential Trouble for Retirees: A Wealth Adviser's Guide to the OBBB's Impact on RetirementWhile some provisions might help, others could push you into a higher tax bracket and raise your costs. Be strategic about Roth conversions, charitable donations, estate tax plans and health care expenditures.
