U.S. stock markets closed sharply higher on Friday ahead of the Fed’s crucial FOMC meeting next week. Earnings results were mixed along with mixed economic data. All three major indexes ended in positive territory. For the week, these indexes also finished in positive zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) was up 0.7% or 297.01 points to close at 41,393.78. Notably, 24 components of the 30-stock index ended in positive territory while 6 in negative zone. The blue-chip index posted a three-day winning run.
The tech-heavy Nasdaq Composite finished at 17,683.98, rising 0.7% or 114.30 points due to strong performance by technology giants, especially AI-based stocks. The tech-laden index recorded a five-day winning-streak.
The S&P 500 appreciated 0.5% to finish at 5,626.02. All 11 broad sectors of the broad-market index ended in Positive territory. Wall Street’s benchmark index also registered a five-day winning-streak.
The Communication Services Select Sector SPDR (XLC), the Industrials Select Sector SPDR (XLI) and the Utilities Select Sector SPDR (XLU) advanced 1%, 1% and 1.4%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 3% to 16.56. A total of 10.15 billion shares were traded on Friday, lower than the last 20-session average of 10.78 billion. advancers outnumbered decliners on the NYSE by a 5.54-to-1 ratio. On Nasdaq, a 3.19-to-1 ratio favored advancing issues.
Markets Wait for Crucial Fed Meeting
The Fed will conduct its next FOMC meeting on Sept. 17-18. Market participants are currently riding on high expectations of the beginning of the interest rate cut regime by the Fed in the September FOMC meeting scheduled next week. The existing range of 5.25-5.5% marks a 23-year high level. If the Fed initiates a rate cut, it will be the first one since March 2020, at the onset of COVID-19.
Mixed Earnings Results
Adobe Inc. (ADBE - Free Report) reported third-quarter fiscal 2024 non-GAAP earnings of $4.65 per share, beating the Zacks Consensus Estimate by 2.65%. Total revenues were $5.41 billion, which beat the Zacks Consensus Estimate of $5.37 billion. However, for fourth-quarter fiscal 2024, Adobe projects total revenues between $5.50 billion and $5.55 billion. The Zacks Consensus Estimate for the same is pegged at $5.60 billion.
RH (RH - Free Report) reported second-quarter 2024 adjusted earnings per share of $1.69, which beat the Zacks consensus mark of $1.53 by 10.5%. Net revenues of $829.7 million also came ahead of the consensus mark of $826.9 million.
Consequently, stock price of Adobe plummeted 8.5% while stock price of RH soared 25.5%. Adobe currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The University of Michigan reported that the preliminary index for consumer sentiment came in at 69%, higher than the consensus estimate of 68.4% and the final reading of 67.9% in August. Current condition index reported at 62.9% in September compared with 61.3% in August.
Consumer expectations index reported at 73% in September compared with 72.1% in August. The one-year inflation outlook dipped to 2.7%, its lowest since December 2020. However, the five-year view rose to 3.1%, its highest since November 2023.
Weekly Roundup
Last week was very impressive for Wall Street. The Dow, the S&P 500 and the Nasdaq Composite rallied 2.6%, 4% and 5.9%, respectively. The S&P 500 and the Nasdaq Composite posted their best week in 2024. Expectations of a Fed rate cut boosted investors’ confidence on risky assets like equities.
U.S. stock markets closed sharply higher on Friday ahead of the Fed’s crucial FOMC meeting next week. Earnings results were mixed along with mixed economic data. All three major indexes ended in positive territory. For the week, these indexes also finished in positive zone.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) was up 0.7% or 297.01 points to close at 41,393.78. Notably, 24 components of the 30-stock index ended in positive territory while 6 in negative zone. The blue-chip index posted a three-day winning run.
The tech-heavy Nasdaq Composite finished at 17,683.98, rising 0.7% or 114.30 points due to strong performance by technology giants, especially AI-based stocks. The tech-laden index recorded a five-day winning-streak.
The S&P 500 appreciated 0.5% to finish at 5,626.02. All 11 broad sectors of the broad-market index ended in Positive territory. Wall Street’s benchmark index also registered a five-day winning-streak.
The Communication Services Select Sector SPDR (XLC), the Industrials Select Sector SPDR (XLI) and the Utilities Select Sector SPDR (XLU) advanced 1%, 1% and 1.4%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 3% to 16.56. A total of 10.15 billion shares were traded on Friday, lower than the last 20-session average of 10.78 billion. advancers outnumbered decliners on the NYSE by a 5.54-to-1 ratio. On Nasdaq, a 3.19-to-1 ratio favored advancing issues.
Markets Wait for Crucial Fed Meeting
The Fed will conduct its next FOMC meeting on Sept. 17-18. Market participants are currently riding on high expectations of the beginning of the interest rate cut regime by the Fed in the September FOMC meeting scheduled next week. The existing range of 5.25-5.5% marks a 23-year high level. If the Fed initiates a rate cut, it will be the first one since March 2020, at the onset of COVID-19.
Mixed Earnings Results
Adobe Inc. (ADBE - Free Report) reported third-quarter fiscal 2024 non-GAAP earnings of $4.65 per share, beating the Zacks Consensus Estimate by 2.65%. Total revenues were $5.41 billion, which beat the Zacks Consensus Estimate of $5.37 billion. However, for fourth-quarter fiscal 2024, Adobe projects total revenues between $5.50 billion and $5.55 billion. The Zacks Consensus Estimate for the same is pegged at $5.60 billion.
RH (RH - Free Report) reported second-quarter 2024 adjusted earnings per share of $1.69, which beat the Zacks consensus mark of $1.53 by 10.5%. Net revenues of $829.7 million also came ahead of the consensus mark of $826.9 million.
Consequently, stock price of Adobe plummeted 8.5% while stock price of RH soared 25.5%. Adobe currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
The University of Michigan reported that the preliminary index for consumer sentiment came in at 69%, higher than the consensus estimate of 68.4% and the final reading of 67.9% in August. Current condition index reported at 62.9% in September compared with 61.3% in August.
Consumer expectations index reported at 73% in September compared with 72.1% in August. The one-year inflation outlook dipped to 2.7%, its lowest since December 2020. However, the five-year view rose to 3.1%, its highest since November 2023.
Weekly Roundup
Last week was very impressive for Wall Street. The Dow, the S&P 500 and the Nasdaq Composite rallied 2.6%, 4% and 5.9%, respectively. The S&P 500 and the Nasdaq Composite posted their best week in 2024. Expectations of a Fed rate cut boosted investors’ confidence on risky assets like equities.
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