Finance Inquirer
No Result
View All Result
Friday, January 27, 2023
  • Login
  • Home
  • Business
  • Technology
  • Finance
  • Stock Market
Subscribe
Finance Inquirer
  • Home
  • Business
  • Technology
  • Finance
  • Stock Market
No Result
View All Result
Finance Inquirer
No Result
View All Result
Home Stock Market

Stock Market Slides As Powell’s Comments Continue To Weigh On Investors; 2 Chinese Stocks Gain On Earnings

Tom Hagler by Tom Hagler
29.09.2022
in Stock Market
Stock Market Slides As Powell’s Comments Continue To Weigh On Investors; 2 Chinese Stocks Gain On Earnings
152
SHARES
1.9k
VIEWS
Share on FacebookShare on Twitter

Stock-jeromepowell2022-02-gov.jpg

The stock market slid Monday after Fed Chairman Jerome Powell’s comments on Friday to rein in inflation continued to spark fear among investors. Meanwhile, two Chinese stocks gained on earnings.

X

The Nasdaq composite lost 0.2% while the S&P 500 was down 0.3%. The Dow Jones Industrial Average slid 0.5%. The small-cap Russell 2000 index lost 0.7%.

Volume rose on the Nasdaq and the NYSE vs. the same time on Friday.

Federal Reserve chief Jerome Powell said Friday that more “pain” is needed to bring down inflation.

Investors were clearly unhappy with the U.S. central bank’s commitment to fight inflation. “Restoring price stability will likely require maintaining a restrictive policy stance for some time,” Powell said in his speech. “The historical record cautions strongly against prematurely loosening policy.”

Stock Market Sees A Strong Chance Of A 0.75% Rate Hike

Markets now see a 66.5% chance of a 75-basis-point hike in September, vs. a 33.5% likelihood the Fed will boost rates by 50 basis points, according to the CBOE Fed Funds Watch tool.

U.S. Stock Market Today Overview

Index Symbol Price Gain/Loss % Change
Dow Jones (0DJIA) 32085.84 -197.56 -0.61
S&P 500 (0S&P5) 4041.19 -16.47 -0.41
Nasdaq (0NDQC ) 12096.75 -44.96 -0.37
Russell 2000 (IWM) 188.41 -0.57 -0.30
IBD 50 (FFTY) 29.68 +0.12 +0.41
Last Update: 10:34 AM ET 8/29/2022

“Powell can’t come right out and say that the Fed is fine walking us right into recession in order to crush inflation, but that is what this messaging unequivocally implies,” said Cliff Hodge, Chief Investment Officer for Cornerstone Wealth. “What does this mean for markets? Drastically it reduces the chance of a soft landing and the bull case for new highs this year.”

The 10-year U.S. Treasury yield rose five basis points to 3.08%. Crude oil prices rose 1% to $94.31 per barrel.

The Innovator IBD 50 ETF (FFTY) gained 0.1%, lagging the broad market’s gains.

Stocks in Asia and Europe mostly fell on Monday, with the London FTSE 100, the German DAX and the French CAC 40 all dropping. Japan’s Nikkei 224 slid 2.7% and the Hong Kong Hang Seng Index fell 0.7%. The Shanghai core index was able to escape the wrath, gaining 0.1%.

Meanwhile, several Chinese stocks also gained Monday after reporting earnings.

Pinduoduo, BYD Gain On Earnings

Pinduoduo (PDD) jumped 16% on blowout earnings, rising just past the 68.81 buy point of a cup base. PDD earnings crushed views before the open Monday. Adjusted EPS leapt 156% vs. a year earlier to $1.13, beating by 73 cents. Revenue rose 36% to $4.69 billion, more than $1 billion above consensus.

BYD (BYDDF) also reported Monday that Q2 profit shot up 197% vs. a year earlier in local currency terms, with revenue up 68%. The EV giant had reported strong preliminary first-half figures on July 14. BYD is the biggest Chinese EV maker. It makes EVs, plug-in hybrids as well as electric buses and heavy equipment. It’s also a major EV battery maker. Warren Buffett’s Berkshire Hathaway (BRKB) is a longtime investor. BYDDF stock gained 0.7% Monday.

Honda Motor (HMC) jumped more than 1% after the Japanese automaker and LG Energy Solutions said Monday they plan to build a $4.4 billion electric-vehicle battery factory in the U.S. The companies said they plan to begin construction of the factory early next year, ramping up to mass production by the end of 2025.

Tesla (TSLA) stock slid 2% after Tesla CEO Elon Musk said the world needs more oil, gas, nuclear power and alternative energy. “I think we actually need more oil and gas, not less, but simultaneously moving as fast as we can to a sustainable energy economy,” Musk told a conference in Stavanger, Norway.

Tesla stock continues to grapple with resistance around its 200-day line. Tesla is more than 30% off its 52-week high.

Follow Michael Molinski on Twitter @IMmolinski

YOU MAY ALSO LIKE:

Is It Time To Sell GLD Stock As Recession, Inflation Ease?

Get Full Access To IBD Stock Lists And Ratings

Is XOM A Buy Now After Q2 Earnings?

Get Free IBD Newsletters: Market Prep | Tech Report | How To Invest

Fed Chief Powell Expected To Say This, But Market Rallies; 5 Stocks In Buy Zones

The post Stock Market Slides As Powell’s Comments Continue To Weigh On Investors; 2 Chinese Stocks Gain On Earnings appeared first on Investor’s Business Daily.

Categories

  • Business
  • Finance
  • News
  • Stock Market
  • Technology

Site Navigation

  • Home
  • Contact Us
No Result
View All Result
  • Home
  • Business
  • Technology
  • Finance
  • Stock Market

© 2021 financeinquirer.com

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In