U.S. stocks are mixed as Wall Street watches

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U.S. stocks were mixed on Tuesday after falling back from all-time highs, with retail earnings focused on counting down important inflation reports and luring investors.

The Dow Jones Industrial Average (^DJI) fell about 0.3%, while the S&P 500 (^GSPC) was little changed after retreating from record levels. Tech stocks fared even better, with the Nasdaq Composite Index (^IXIC) up 0.2%.

Stocks are losing momentum as investors regroup after last week’s choppy rally and focus on the health of the U.S. economy. Looming for investors is Thursday’s release of the PCE index report, a key inflation measure for the Fed’s rate-setting decisions.

read more: Impact of Fed interest rate decisions on bank accounts, CDs, loans, and credit cards

Considering the market situation, With interest in the timing of a rate cut, the PCE result is seen as a catalyst that could move stock prices in either direction. Meanwhile, consumers appear to be losing confidence in the U.S. economy.

The Conference Board’s consumer confidence index for February was 106.7, down from January’s revised reading of 110.9. The preliminary figure for January was 114, the highest level for this index in two years. Economists surveyed by Bloomberg had expected February’s figure to be 115.

Investors digested other economic updates Tuesday, including further increases in home prices and the biggest decline in U.S. durable goods orders in four years.

In contrast, Bitcoin (BTC-USD) price soared to a two-year high, briefly topping $57,000 per token, supported by a major investment from MicroStrategy (MSTR). Shares of crypto exchanges such as Bitcoin Miner and Coinbase (COIN) rose along with major digital currencies.

Earnings reports released by major retailers early in the morning provided a clue as to how consumers are doing. Macy’s (M) shares fell after the company revealed plans to close 150 stores in a turnaround bid and said sales would increase by another quarter. Lowe’s (LOW)’s lackluster sales and profit outlook for 2024 weighed on the home improvement chain’s stock price.

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Tuesday, February 27, 2024, 9:24 PM GMT+5:30

Viking Therapeutics stock plummets 70% after positive trial results

The weight loss trade is alive and well on Wall Street.

Viking Therapeutics (VKTX) stock rose as much as 70% early Tuesday after the company reported that its Phase 2 trial of its weight loss treatment met its primary and secondary endpoints.

In this study, weight loss treatment VK2735, a “dual agonist of glucagon-like peptide 1 (GLP-1) and glucose-dependent insulinotropic polypeptide (GIP) receptors,” reduced patients’ weight by $13.1 after adjusting for placebo. was shown to have decreased. % of body weight after 13 weeks.

The company plans to meet with the FDA to discuss next steps in development.

Viking’s stock price has increased sixfold in the last year, and the company’s market capitalization is now approaching $7 billion.

Elsewhere on Tuesday, shares of Fractyl Health (GUTS) rose as much as 6% after Bank of America initiated coverage on the stock with a Buy rating and $26 price target.

Fractyl stock has fallen about 50% since going public earlier this month.

Fractyl is developing drugs to treat diabetes and obesity as the pharmaceutical industry races toward the opportunity opened up by Novo Nordisk (NVO) and Eli Lilly (LLY).

“We will begin coverage on Fractyl with purchase and PO of $26,” BofA wrote in the memo.

“GUTS is a pre-commercial medical technology and biopharmaceutical hybrid company developing treatments for type 2 diabetes (T2D) and obesity. ) is a non-invasive endoscopic surgery that repairs part of the body.

“Our follow-on asset, Rejuva (preclinical), is a one-time GLP1 gene therapy aimed at remitting diabetes and may be better tolerated than commercially available GLP1 drugs. We like GUTS as a practical catalyst with upside potential in 2024-25. For example: Pivotal Revita data could support approval in the multi-billion T2D market.”
Tuesday, February 27, 2024, 8:43 PM GMT+5:30

Consumer confidence falls from two-year high

Consumers are losing confidence in the state of the U.S. economy, according to new data released Tuesday morning.

The Conference Board’s consumer confidence index for February was 106.7, down from January’s revised reading of 110.9. The preliminary figure for January was 114, the highest level for this index in two years. Economists surveyed by Bloomberg had expected February’s figure to be 115.

The expectations index, which measures consumers’ short-term outlook for income, businesses, and the labor market, was 79.8 in February, down from January’s revised reading of 81.5. Historically, a reading below 80 in this category is a sign of an upcoming recession. Year.

“The decline in consumer confidence in February punctuated three months of gains, reflecting persistent uncertainty about the U.S. economy,” said Dana Peterson, chief economist at the Conference Board.

“The decline in confidence was widespread, affecting all income groups except households with incomes below $15,000 and households with incomes above $125,000.Confidence among consumers under 35 and over 55 declined. “It worsened, but improved slightly for consumers aged 35 to 54,” she added.
Tuesday, February 27, 2024, 8:02 PM GMT+5:30

Stocks are mostly silent

U.S. stocks were little changed in early trading Tuesday as investors digested a slew of retail earnings reports and awaited the next PCE inflation data to be released on Thursday.

The Dow Jones Industrial Average (^DJI) and S&P 500 (^GSPC) were little changed after falling from their all-time highs. Tech stocks fared even better, with the Nasdaq Composite Index (^IXIC) up 0.3%.
Tuesday, February 27, 2024, 7:00 PM GMT+5:30

Macy’s announces closing of 150 more stores

That’s amazing, Macy’s (M).

Macy’s made a bombshell this morning in an effort to fend off an attempt to overthrow its board by activist investor Arkhouse, which has appointed nine people to its board. The company said it has closed 150 “low-productivity” stores and plans to close 50 stores this year. .

The goal is to expand profit margins and cash flow, potentially boosting stock prices.

That’s a huge number for a company that has closed hundreds of stores across the country over the past decade.

Let’s put aside for a moment what this means for the fight against Ark House.

But my point is, this is likely to be bullish over the long term for discount companies Walmart (WMT), Target (TGT), and TJX Companies (TJX) in their general merchandise divisions. Essentially, Macy’s is pulling out of new U.S. neighborhoods and shifting market share to competitors, both in stores and online.

I think this closing speaks volumes about how the shift to digital shopping continues to impact traditional retailers like Macy’s.

By the way, Amazon (AMZN) naturally wins here. The company has made great strides in its apparel and general merchandise assortment, and given delivery times continue to shrink, expect the tech beast to continue to put significant pressure on department store retailers. .
Tuesday, February 27, 2024, 6:01pm (GMT+5:30)

Housing market still not good

The mood surrounding the U.S. housing market remains unfavorable, and probably won’t get any better until later this year.

Consumer electronics giant Whirlpool (WHR) just released some guidance ahead of a sell-off to investors on the New York Stock Exchange today, which says a lot about the continued pressure in the market. .

Despite a big innovation push this year, especially an aggressive push into new small appliances like the automatic KitchenAid espresso maker, the company led sales in North America to flat year over year.

The company doesn’t see any real improvement in sales until 2026, with compound annual sales growth in North America, its largest market, of 2% to 3%, outlined.

Learn more about this guide with Whirlpool Chairman and CEO Marc Bitzer in a chat on Yahoo Finance Live today at 3pm ET.

The positive here is that the industry’s notorious cost-cutting companies believe they can expand profit margins this year, next year, and into 2026 by cutting significant costs.

Keep in mind that this back-end-focused outlook for Whirlpool comes in the wake of this week’s lackluster new home sales report.

The bottom line is that for housing derivatives stocks like Whirlpool and Home Depot (HD) to rise again, the Fed will need new signals about when it will cut rates. Expectations for interest rate cuts this year have been sharply dented by stronger-than-expected inflation and mixed comments from the Fed.

That being said, I am a purchaser of a new KitchenAid automatic espresso maker. A great tool that delivers caffeine in a super efficient way!