Stock Market Today: Stocks Slip With Inflation Data in Focus
Amazon closed lower on its first day as a Dow Jones stock.
Stocks opened higher Monday but ran out of steam as the session wore on. There are plenty of notable companies on this week's earnings calendar, including tech giant Salesforce (CRM, +2.6%). But the bulk of attention will be centered on a busy economic calendar that includes Thursday's key inflation update.
"While many traders will be watching durable goods orders and the first revision to fourth-quarter gross domestic product (GDP), Thursday's Personal Consumption and Expenditures (PCE) Price Index may get more attention than usual," says Chris Larkin, managing director of trading and investing at E*TRADE from Morgan Stanley.
This data point "often flies under the radar," Larkin notes, but following recent hotter-than-expected inflation readings, "more people may be looking to the PCE for insight into the reinflation threat, and how it may influence the Fed's timing of rate cuts."
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.
FTC sues to block Kroger's buyout of Albertsons
In single-stock news, Amazon.com (AMZN) shed 0.2% on its first day as a Dow Jones stock. The e-commerce giant replaced Walgreens Boots Alliance (WBA, -3.4%) as a member of the 30-component index ahead of today's open. Dan Burrows, senior investing writer at Kiplinger.com, explains why this matters here.
Kroger (KR) was another notable mover Monday, slipping 2.0% on news the Federal Trade Commission (FTC) is suing to block its $25 billion buyout of fellow grocery chain Albertsons (ACI, +0.6%). The FTC lawsuit says the deal will create higher food prices for consumers and lower wages for employees.
"Kroger's acquisition of Albertsons would lead to additional grocery price hikes for everyday goods, further exacerbating the financial strain consumers across the country face today," said Henry Liu, director of the FTC's Bureau of Competition. "Essential grocery store workers would also suffer under this deal, facing the threat of their wages dwindling, benefits diminishing, and their working conditions deteriorating."
Berkshire ends Q4 with $167 billion in cash
Elsewhere, Berkshire Hathaway (BRK.B) fell 1.9% after Warren Buffett's holding company released its fourth-quarter earnings report over the weekend. Berkshire beat analysts' per-share earnings estimates for the three-month period. The report also showed BRK.B bought back $2.2 billion in stock in Q4 – and $9.2 billion for all of 2023.
Additionally, the company ended the period with cash and equivalents totaling $167.6 billion. This staggering figure – equivalent to the market caps of blue chip stocks International Business Machines (IBM, -0.9%) or Verizon Communications (VZ, -2.4%) – has many wondering what Berkshire plans to do with all this cash? It seems nothing … for now.
"There remain only a handful of companies in this country capable of truly moving the needle at Berkshire, and they have been endlessly picked over by us and by others," wrote Buffett in his letter to Berkshire Hathaway shareholders. "Some we can value; some we can't. And, if we can, they have to be attractively priced. Outside the U.S., there are essentially no candidates that are meaningful options for capital deployment at Berkshire. All in all, we have no possibility of eye-popping performance."
As for the main indexes, the Dow Jones Industrial Average fell 0.2% to 39,069, the S&P 500 gave back 0.4% to 5,069, and the Nasdaq Composite finished down 0.1% at 15,976.
Related content
- FTC: H&R Block 'Data Wiping' and Upgrade Policies Harm Taxpayers
- Should You Use a 25x4 Portfolio Allocation?
- AT&T Will Give You A $5 Credit If You Were Hit By Its Network Outage
-
Dow Rises 313 Points to Begin a Big Week: Stock Market TodayThe S&P 500 is within 50 points of crossing 7,000 for the first time, and Papa Dow is lurking just below its own new all-time high.
-
The $3,000 Retirement Mistake Millions Make Each Year (And How to Avoid It)A little oversight or automation can keep money in your pocket.
-
January Fed Meeting: Live Updates and CommentaryThe January Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
-
Dow Rises 313 Points to Begin a Big Week: Stock Market Today
The S&P 500 is within 50 points of crossing 7,000 for the first time, and Papa Dow is lurking just below its own new all-time high.
-
January Fed Meeting: Live Updates and Commentary
The January Fed meeting is a key economic event, with Wall Street waiting to see what Fed Chair Powell & Co. will do about interest rates.
-
7 Questions to Help Kick Off an Estate Planning Talk With Your ParentsIt can be hard for aging parents to discuss estate plans — and for adult kids to broach the topic. Here are seven questions to get the conversation started
-
Down But Not Out: 4 Reasons Why the Dollar Remains the World HeavyweightThe dollar may have taken a beating lately, but it's unlikely to be overtaken as the leading reserve currency any time soon. What's behind its staying power?
-
What Not to Do After Inheriting Wealth: 4 Mistakes That Could Cost You EverythingGen X and Millennials are expected to receive trillions of dollars in inheritance. Unless it's managed properly, the money could slip through their fingers.
-
'The Money Prism' Solves Retirement Money's Biggest Headache: Here's HowThis simple, three-zone system (Blue for bills, Green for paycheck, Red for growth) helps you organize your retirement savings by purpose and time.
-
No, AI Can't Plan Your Retirement: This (Human) Investment Adviser Explains WhyAI has infinite uses. But creating an accurate retirement strategy based on your unique goals is one place where its possibilities seem lacking.
-
A Value Focus Clips Returns for This Mairs & Power Growth FundRough years for UnitedHealth and Fiserv have weighed on returns for one of our favorite mutual funds.
