#StockMarket #EconomicGrowth #InvestorConfidence
Market Gains and Key Economic Indicators
The stock market is on a roll, with the Dow Jones Industrial Average surging 392 points, or 0.9%, marking a potential three-week winning streak. The S&P 500, though only up 0.04%, has set a new record closing for the third time this week, while the Nasdaq Composite has seen four consecutive days of gains.
Economic Reports Reassure Investors
Several economic reports released on Thursday bolstered investor confidence in the U.S. economy. Initial job claims dropped more than expected, indicating a strong labor market. The final estimate for the second-quarter gross domestic product (GDP) came in at a 3% annualized rate, further reinforcing economic resilience.
Inflation Expectations
Market participants are eagerly awaiting the release of the personal consumption expenditures (PCE) price index for August, scheduled for Friday morning. This index is the Federal Reserve's preferred measure of inflation, and both policymakers and investors are hoping for data that shows a downward trend. Economists predict the headline PCE will increase at an annualized rate of 2.3% and rise by 0.1% compared to the previous month.
Corporate Earnings and Updates
Costco Wholesale reported earnings of $5.29 per share in the fourth quarter of its fiscal year, falling short of analysts' expectations of $5.08 per share. Total revenue reached $79.70 billion, slightly below the predicted $79.97 billion. This led to a 1% decline in Costco's stock in after-hours trading.
Tech Sector Boost
The tech sector saw significant gains, particularly after Micron's strong earnings report. Micron, a memory chip manufacturer, exceeded expectations and provided an optimistic forecast, causing its stock to soar by 18%. This surge, combined with positive sentiment from China following indications of potential fiscal stimulus, has buoyed global markets.
Other Notable Moves
- Southwest Airlines: Raised its forecast for the third quarter and announced a $2.5 billion share buyback plan, despite facing challenges from activist investor group Elliott Management.
- Digital Realty Trust: Goldman Sachs has made this data center operator its top pick for the fourth quarter, citing robust fundamentals driven by heightened AI demand. The firm has increased its price target to $185, indicating a potential upside of over 13% from Wednesday's closing price.
Market Outlook
All three major indices have shown gains this week, with the S&P 500 up nearly 0.8% and the Dow on track for a 0.3% increase. The positive economic data and strong corporate earnings have contributed to this upward trend.
As the market looks forward to the PCE index release, investors remain optimistic about the overall health of the U.S. economy and the potential for continued growth in key sectors like technology and data centers.
Original Article: https://www.cnbc.com/2024/09/26/stock-market-today-live-updates.html
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