Stock Market Today: Stocks Struggle for Direction After Mixed Fed Messages
E-commerce platform PDD Holdings jumped after earnings, while rival Shein reportedly filed confidential IPO paperwork.
Stocks were choppy Tuesday as investors took in mixed messages from several Federal Reserve officials and an encouraging reading on consumer sentiment.
One of the more hawkish central bankers to speak Tuesday was Federal Reserve Governor Michelle Bowman. In prepared remarks for a speech at a Utah bankers gathering, Bowman said she thinks the Fed "will need to increase the federal funds rate further to keep policy sufficiently restrictive to bring inflation down to our 2% target in a timely way."
Striking a more dovish tone was Fed Governor Christopher Waller, who said earlier at a moderated discussion in Washington D.C. that he is "encouraged" by recent data that showed "moderating economic activity" in Q4. However, Waller added that "inflation is still too high."
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.
Fed expected to pause at December meeting
The Fed's aggressive series of rate hikes has the federal funds rate at its highest level in 22 years, and market participants do not believe the central bank will raise it past the current range of 5.25% to 5.5%. According to CME Group, futures traders are pricing in a 99% chance the Fed will hold rates steady at its December meeting.
The next update on inflation comes Thursday with the release of the October Personal Consumption and Expenditures (PCE) index, which tracks consumer spending.
As for today's economic news, The Conference Board said its consumer confidence index rose to 102.0 in November from 99.1 in October. "Consumer confidence increased in November, following three consecutive months of decline," said Dana Peterson, chief economist at The Conference Board, in the report. "Nonetheless, write-in responses revealed consumers remain preoccupied with rising prices in general, followed by war/conflicts and higher interest rates."
Fast-fashion retailer Shein heads toward IPO
In single-stock news, U.S.-listed shares of PDD Holdings (PDD) spiked 18.1% after the e-commerce platform reported earnings. In its third quarter, the company, which owns popular online marketplaces Pinduoduo and Temu, reported earnings of $1.64 per share on revenue of $9.7 billion – handily beating analysts' estimates.
PDD rival Shein was also in the news today, with the fast-fashion retailer reportedly filing confidential paperwork to go public. Details are sparse, but the company's initial public offering (IPO) could happen as soon as next year.
Although the Singapore-based e-commerce firm has some impressive financials, its IPO is far from a done deal. For one, Shein is accused of sourcing cotton from Xinjiang, where China is believed to have committed human rights abuses against the Uyghur population.
Plus, the company has been criticized "for the huge volumes of cheap clothes it produces, the lack of transparency in its supply chain and its appropriation of other designers' work," says Susannah Streeter, head of money and markets at Hargreaves Lansdown.
Still, Shein going public would likely mark one of the hottest upcoming IPOs on Wall Street in 2024, and new investors should understand what an IPO is.
As for the major indexes, they spent time in both positive and negative territory today. At the close, the Dow Jones Industrial Average was up 0.2% at 35,416. The S&P 500 (+0.1% at 4,554) and the Nasdaq Composite (+0.3% at 14,281) eked out modest gains.
Related content
- When Is the Next CPI Report?
- Your Backup Gmail Account Could Disappear This Week
- Stock Picks That Billionaires Love
-
Stocks Close Down as Gold, Silver Spiral: Stock Market TodayA "long-overdue correction" temporarily halted a massive rally in gold and silver, while the Dow took a hit from negative reactions to blue-chip earnings.
-
Pay-As-You-Go vs. Monthly Plans: Which Saves More for Light Phone Users?Light phone users may be paying for data they never use. Here's how pay-as-you-go and low-cost monthly plans really compare.
-
Trump Nominates Kevin Warsh to Fed Chair. How Will This Impact Savers?Here's a look at how Warsh could influence future Fed policy if he's confirmed.
-
Stocks Close Down as Gold, Silver Spiral: Stock Market Today
A "long-overdue correction" temporarily halted a massive rally in gold and silver, while the Dow took a hit from negative reactions to blue-chip earnings.
-
If You'd Put $1,000 Into AMD Stock 20 Years Ago, Here's What You'd Have TodayAdvanced Micro Devices stock is soaring thanks to AI, but as a buy-and-hold bet, it's been a market laggard.
-
Nasdaq Drops 172 Points on MSFT AI Spend: Stock Market TodayMicrosoft, Meta Platforms and a mid-cap energy stock have a lot to say about the state of the AI revolution today.
-
S&P 500 Tops 7,000, Fed Pauses Rate Cuts: Stock Market TodayInvestors, traders and speculators will probably have to wait until after Jerome Powell steps down for the next Fed rate cut.
-
S&P 500 Hits New High Before Big Tech Earnings, Fed: Stock Market TodayThe tech-heavy Nasdaq also shone in Tuesday's session, while UnitedHealth dragged on the blue-chip Dow Jones Industrial Average.
-
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.
-
Nasdaq Leads Ahead of Big Tech Earnings: Stock Market TodayPresident Donald Trump is making markets move based on personal and political as well as financial and economic priorities.
-
Nasdaq Adds 211 Points as Greenland Tensions Ease: Stock Market TodayWall Street continues to cheer easing geopolitical tensions and President Trump's assurances that there will be no new tariffs on Europe.
