Stock Market News for Mar 21, 2024
Market News
Wall Street ended sharply higher on Wednesday, driven by comments made by Fed officials. Interest rates were not hiked at the March Fed FOMC meeting, but there were indications that there could be three rate cuts this year. Market participants were assessing strong earnings results. All three major stock indexes ended in green.
How Did the Benchmarks Perform?
The Dow Jones Industrial Average (DJI) jumped 1% or 401.37 points to close at 39,512.13. Notably, 28 components of the 30-stock index ended in positive territory, while two finished in negative zone.
The tech-heavy Nasdaq added 202.62 points or 1.3% to close at 16,369.41.
The S&P 500 climbed 0.9% or 46.11 points to end at 5,224.62. Of the 11 broad sectors of the benchmark, nine ended in positive territory, while two ended in the red zone. The Consumer Discretionary Select Sector SPDR (XLY), the Technology Select Sector SPDR (XLK), the Communication Services Select Sector SPDR (XLC) and the Industrials Select Sector SPDR (XLI) rose 1.5%, 1.1%, 1.2% and 1.2%, respectively, while the Health Care Select Sector SPDR (XLV) declined 0.2%.
The fear-gauge CBOE Volatility Index (VIX) was down 5.6% to 13.04. A total of 11.67 billion shares were traded on Wednesday, higher than the last 20-session average of 12.2 billion. The S&P 500 posted 81 new 52-week highs and one new 52-week low. The Nasdaq Composite registered 251 new 52-week highs and 101 new 52-week lows.
Fed Holds Rates Amid Inflation Worries
The Federal Open Market Committee (FOMC) decided to maintain the federal funds rate target range at its current level of 5.25-5.5%, which is the highest it has been in 23 years. According to the committee's dot plot, which reflects policymakers' forecasts for interest rates and the economy, most officials still anticipate three rate cuts this year.
Fed Chair Jerome Powell commented that despite recent high inflation reports in January and February, the overall trajectory remains consistent, with inflation gradually declining toward the Fed's target of 2%. While there are worries regarding inflation, the Fed's optimism about growth and low unemployment remains unchanged. Powell's cautious approach highlights the need for evidence before contemplating any policy changes. Overall, the Fed aims to strike a balance between economic growth and managing inflationary pressures.
Solid Q4 Earnings
Sportradar Group AG SRAD reported fourth-quarter fiscal 2023 adjusted earnings of $0.08 per share, beating the Zacks Consensus Estimate of $0.06 per share. This Leisure and Recreation Products retailer generated total revenues of $271.98 million, outpacing the Zacks Consensus Estimate by 1.73%.
General Mills, Inc. GIS reported third-quarter fiscal 2024 adjusted earnings of $1.17 per share, beating the Zacks Consensus Estimate of $1.04 per share. The packaged foods retailer generated total revenues of $5.1 billion, beating the Zacks Consensus Estimate of $4.95 billion.
Consequently, shares of Sportradar and General Mills returned 11.3% and 1.2%, respectively. Each of these companies carries a Zacks Rank #3 (Hold). You Can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
For the week ended Mar 15, U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) decreased by 2 million barrels from the previous week.
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