Nasdaq Index, Dow Jones, S&P 500 News: Wall Street Pulls Back, Eyes on CPI

Highlights

• S&P Earnings Rebound, Excluding Energy 
• Boeing Soars on $52B Emirates Deal 
• Wall Street indices fall as rate hike concerns loom 
• Goldman Sachs projects S&P earnings growth through 2025
• JPMorgan: Equities may struggle if yields exceed 5% 

Market Opens Lower Amid Rate Hike Concerns

Wall Street indices dipped at the start of the week, with investors poised for key economic data that could signal the duration of the Fed’s heightened interest rates. The Dow, S&P 500, and Nasdaq Composite saw modest declines, highlighting market caution.

At 15:11 GMT, the blue chip Dow Jones Industrial Average is trading 34231.54, down 51.56 or -0.15%. The benchmark S&P 500 Index is at 4396.35, down 18.89 or -0.43% and the tech-weighted Nasdaq-100 Index is at 13715.43, down 82.68 or -0.60%.

Earnings Per Share and Sector Performance

S&P 500 earnings per share have rebounded, marking the first growth since last year, excluding a slump in the energy sector. Health Care drags, yet overall earnings forecasts remain unchanged, with Goldman Sachs projecting steady growth through 2025.

Individual Stocks in the Spotlight

Stock movements varied, with V.F., Illumina, and Boston Properties driving S&P losses, while Boeing surged on a massive Emirates order. Tyson Foods experienced a drop after reporting lower-than-expected revenue and a flat sales outlook.

Credit Ratings and Treasury Yields

Moody’s recent comments on the U.S.’s fiscal health and partisan gridlock have slightly affected Treasury yields, yet the AAA credit rating stands firm. JPMorgan warns that equities could struggle if yields rise above 5%, with defensive stocks potentially weathering the storm.

Looking Ahead

The market’s attention turns to the U.S. budget and consumer data, with the looming CPI report being the focal point. The fiscal deficits and budgetary challenges weigh on investors’ minds, influencing sentiments and future investment decisions.

Technical Analysis

The E-mini S&P 500 Index, currently positioned at 4412.00, is trading above both the 50-day and 200-day moving averages, set at 4365.95 and 4282.11, respectively.

This placement indicates a bullish sentiment from a technical standpoint, as the index sustains above these key levels, suggesting an overall positive trend in the market.

Despite a minor retreat from the previous close, the index’s stance above these averages typically reflects ongoing investor confidence and could imply continued upward momentum if other market conditions remain favorable.