Stock Market Today: Stocks Tread Water Ahead of June Fed Meeting
The S&P 500 managed to eke out a new record high, while the Dow muscled its way into the green at the close.
Stocks started Friday with gains but lost steam as the day wore on, even as the latest consumer sentiment data came in better than expected.
After yesterday's consumer price index release, which showed inflation is indeed on the rise, today's economic numbers revealed that consumers have "unfavorable perceptions" of market prices for homes and automobiles.
Complicating matters for market participants, these two latest examples of anxiety over rising prices come ahead of next week's Federal Open Market Committee meeting, which investors will be closely watching for any signs of "taper talk" and other interest-rate policy hints.
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.
That said, the latest inflation data "likely does little to change the Fed's timetable for tapering asset purchases," says Ryan Detrick, chief market strategist at LPL Financial.
"The coming months will be telling, though, as we are now entering the 'show me' phase of the inflation debate where market participants will be increasingly anxious for the Fed to prove its assertion that higher inflation will be transitory."
At the close, though, the Nasdaq Composite was up 0.4% at 14,069, the S&P 500 Index gained 0.2% to 4,247 – enough for a new record high – and the Dow Jones Industrial Average ended marginally higher at 34,479.
Other action in the stock market today:
- The small-cap Russell 2000 gained 1.1% to 2,335.
- Chewy (CHWY, -5.8%) fell after its latest quarterly update. While the online pet supplies retailer reported a surprise per-share profit in its first quarter, it warned of labor shortages and "supply-chain challenges."
- Vertex Pharmaceuticals (VRTX, -11.0%) was another notable decliner today. The biotech said it would halt development of its alpha-1 antitrypsin deficiency (AATD) drug after VRTX said it likely wouldn't have real clinical benefits for those suffering from the rare genetic disease.
- U.S. crude oil futures rose 0.9% to end at $70.91 per barrel.
- Gold futures slipped 0.9% to settle at $1,879.60 an ounce.
- The CBOE Volatility Index (VIX) retreated 2.8% to 15.65.
- Bitcoin rose 1.6% to $37,282.31. (Bitcoin trades 24 hours a day; prices reported here are as of 4 p.m. each trading day.)
Is Growth the New "Pain Trade"?
That's a question Michael Reinking, senior market strategist for the New York Stock Exchange, is pondering.
"There is an old adage that markets move in ways that inflict the maximum amount of pain to the most participants. We see this time and again and it has occurred multiple times within the most recent market rebound," he says.
"Over the last few months the overly simplified group think has evolved to: given the re-opening and the economic rebound, interest rates will move higher and cyclicals/value stocks will outperform. Short positions in the Treasury markets hit record highs in May at the same time hedge fund positioning in growth-oriented sectors were hitting lows. So what is the pain trade? Yields move lower, cyclicals underperform and growth re-emerges."
Some investors, however, are chasing "growth" of a different sort -- quick pops in stocks that a large number of other investors have bet against, such as these 25 stocks with high short interest.
But for most buy-and-holders, it makes sense to seek out longer-term growth trends. You can find them in individual picks such as machine-learning stocks, cybersecurity names, and these 5G plays, or you can spread your risk across this batch of 13 growth ETFs. These funds allow any investor to harness the power of numerous high-growth trends without having to live or die by any one or two companies' ups and downs.
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.
-
Stock Market Today: Dow Climbs 288 Points After Amazon, Intel Earnings
Post-earnings strength from Amazon and Intel helped cushion the blow of a disappointing October jobs report.
By David Dittman Published
-
Nvidia Stock Is Joining the Dow. Is It Time to Buy?
Nvidia will replace Intel in the Dow Jones Industrial Average this Friday. What does it mean for the stock?
By Dan Burrows Published
-
If You'd Put $1,000 Into Google Stock 20 Years Ago, Here's What You'd Have Today
Google parent Alphabet has been a market-beating machine for ages.
By Dan Burrows Published
-
Stock Market Today: Stocks Retreat Ahead of Nvidia Earnings
Markets lost ground on light volume Wednesday as traders keyed on AI bellwether Nvidia earnings after the close.
By Dan Burrows Published
-
Chewy Stock Soars on Big Profit Beat. Is It Time to Buy?
Chewy is red-hot Wednesday after the pet products retailer posted impressive Q2 earnings. Here's what Wall Street has to say about the stock.
By Joey Solitro Published
-
Stock Market Today: Stocks Edge Higher With Nvidia Earnings in Focus
Nvidia stock gained ground ahead of tomorrow's after-the-close earnings event, while Super Micro Computer got hit by a short seller report.
By Karee Venema Published
-
Stock Market Today: Dow Hits New Record Closing High
The Nasdaq Composite and S&P 500 finished in the red as semiconductor stocks struggled.
By Karee Venema Published
-
Stock Market Today: Stocks Pop After Powell's Jackson Hole Speech
Fed Chair Powell's Jackson Hole speech struck a dovish tone which sent stocks soaring Friday.
By Karee Venema Published
-
Stock Market Today: Stocks Drop Ahead of Powell's Jackson Hole Speech
Sentiment turned cautious ahead of Fed Chair Powell's highly anticipated speech Friday at the Jackson Hole Economic Symposium.
By Karee Venema Published
-
Stock Market Today: Stocks Rise After Jobs Data Lifts Rate-Cut Odds
Preliminary data from the Bureau of Labor Statistics shows job growth was lower than previously estimated.
By Karee Venema Published