UNITED STATES NEWS

Stock market today: Wall Street inches modestly lower ahead of more earnings, inflation data

Jan 26, 2024, 12:23 AM

Wall Street ticked modestly lower early Friday but remains on track to close out the opening week of earnings season with gains ahead of a fresh batch of inflation data from the U.S. government.

Futures for the S&P 500 and Dow Jones industrials each inched down less than 0.1% before the bell.

Intel tumbled more than 10% in premarket trading, dragging the entire chip making sector along with it after issuing a weak first-quarter forecast. Intel said it expects to earn an adjusted 13 cents per share in the first quarter of 2024, well short of the 21 cents per share Wall Street had been expecting. The California company’s sales guidance also came in lower than projected.

Markets have been buoyed recently by strong economic data which, along with receding inflation, makes it appear increasingly likely that the U.S. can pull off a so-called “soft landing”: taming inflation without causing the economy to tip into recession.

The U.S. economy grew at a 3.3% annual rate in the last three months of 2023, according to an initial estimate by the U.S. government on Thursday. That was much stronger than the 1.8% growth economists expected, according to FactSet. Such a resilient economy should drive profits for companies, which are one of the main inputs that set stock prices.

The report also gave encouraging corroboration that inflation continued to moderate at the end of 2023. Hopes are high that inflation has cooled enough from its peak two summers ago for the Federal Reserve to start cutting interest rates this year. That in turn would ease the pressure on financial markets and boost investment prices.

The Commerce Department will release the monthly U.S. consumer spending report, which includes the Fed’s preferred measure of inflation. It’s the last major inflation report before the Fed’s policy meeting next week, where most economists expect the central bank to leave its benchmark lending rate alone for the fourth straight time.

Tokyo’s Nikkei 225 declined 1.3% to finish at 35,751.07 as a key measure of inflation slowed faster than expected in January, to 1.6% from 2.4% in December. Weaker price increases relieve pressure on the Bank of Japan to tighten its ultra-lax monetary policy, which has pumped massive amounts of cash into markets. The central bank is targeting 2% inflation.

“The BOJ will wait to gauge the underlying trend of the inflation path for the next few months. We expect inflation to rebound above 2% in February,” Robert Carnell, regional head of research Asia-Pacific at ING, said in a report.

Chinese markets ended a winning streak following a spate of moves by the government to shore up share prices and the property sector.

Hong Kong’s Hang Seng slipped 1.6% to 15,952.23, while the Shanghai Composite was little changed, up 0.1% at 2,910.22.

South Korea’s Kospi rose 0.3% to 2,478.56. Markets were closed in Australia for a national holiday.

France’s CAC 40 jumped 2.3% and Britain’s FTSE 100 added 1.6%. Germany’s DAX was up a more modest 0.3%.

In energy trading, benchmark U.S. crude declined 72 cents to $76.64 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, fell 63 cents to $81.33 a barrel.

In currency trading, the U.S. dollar inched up to 147.79 Japanese yen from 147.64 yen. The euro cost $1.0872, up from $1.0848.

Thursday on Wall Street, the S&P 500 added 0.4% to 4,894.16 and set a record for a fifth straight day. The Dow Jones Industrial Average climbed 0.6% and the Nasdaq composite gained 0.2%.

——-

United States News

Work continues on the roof of Gaido's restaurant in preparation for opening for diners for the firs...

Associated Press

In beachy Galveston, locals buckle down without power after Beryl’s blow during peak tourist season

GALVESTON, Texas (AP) — Vacuums sucked the water out of the seaside inn run by Nick Gaido’s family in Galveston since 1911 as power was still spotty nearly one week after a resurgent Hurricane Beryl swept into Texas. Blue tarp covered much of the torn off roof. Gaido scheduled cleanup shifts for the hotel and […]

6 hours ago

FILE - Balloons are hoisted to the ceiling in the Forum ahead of the 2024 Republican National Conve...

Associated Press

When does a presumptive nominee become a nominee? Here’s how Donald Trump will make it official

WASHINGTON (AP) — Monday 12:01 AM Nearly 2,500 delegates are gathering in Milwaukee this week for a roll call vote to select a the Republican presidential nominee, formally ending the presidential primary. It will be a moment lacking in suspense: Former President Donald Trump has already been the presumptive nominee for months, having clinched a […]

7 hours ago

Members of the Coalition to March on the RNC speak during a news conference ahead of the 2024 Repub...

Associated Press

GOP convention protests are on despite shooting at Trump rally

MILWAUKEE (AP) — Activists gathering in Milwaukee for the start of the Republican National Convention say the assassination attempt on former President Donald Trump won’t affect their long-standing plans to demonstrate outside the convention site this week. A diverse range of organizations and activists is expected outside the downtown Fiserv Forum. The largest expected demonstration […]

7 hours ago

FILE - Actor Clint Eastwood speaks to an empty chair while addressing delegates during the Republic...

Associated Press

Floor fights, boos and a too-long kiss. How the dramatic and the bizarre define convention history

WASHINGTON (AP) — In 1948, the Republican and Democratic parties did something unthinkable in today’s climate of ferocious political animosity: They not only held their national conventions in the same city, but shared some of the props. Both gathered in Philadelphia, largely because its Municipal Auditorium had already been fitted with the wiring needed for […]

7 hours ago

FILE - Republican presidential candidate former President Donald Trump speaks at a campaign rally, ...

Associated Press

The RNC’s first day will still focus on the economy. Here’s what to know about Trump’s plans

WASHINGTON (AP) — Donald Trump goes into the Republican National Convention with bold promises about the U.S. economy, but he has sketched out notably few details about how his plans would actually work. The convention’s first day is still expected to focus on the economy even after Saturday’s shooting at a Trump rally in Pennsylvania […]

7 hours ago

FILE - Wayne LaPierre arrives at court, Jan. 24, 2024, in New York. The second phase of the civil t...

Associated Press

Second phase of NRA civil trial over nonprofit’s spending set to open in NYC

NEW YORK (AP) — The second phase of the civil trial against the National Rifle Association and its top executives is set to begin Monday in Manhattan, with New York Attorney General Letitia James seeking an independent monitor to oversee the powerful gun rights group. The Democrat also is seeking to ban Wayne LaPierre, the […]

7 hours ago

Sponsored Articles

...

Midwestern University

Midwestern University Clinic visits boost student training & community health

Going to a Midwestern University Clinic can help make you feel good in more ways than one.

...

Sanderson Ford

3 new rides for 3 new road trips in Arizona

It's time for the Sanderson Ford Memorial Day sale with the Mighty Fine 69 Anniversary, as Sanderson Ford turned 69 years old in May.

...

COLLINS COMFORT MASTERS

Here are 5 things Arizona residents need to know about their HVAC system

It's warming back up in the Valley, which means it's time to think about your air conditioning system's preparedness for summer.

Stock market today: Wall Street inches modestly lower ahead of more earnings, inflation data