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Stock – Many people expected last year’s economic troubles to be resolved by now, since economists predicted a bright year.
Nevertheless, when February came to a close, things did not appear to be going as planned.
The stock market has been tumultuous all month, and stocks fell on the last day.
The news
On Wall Street on Tuesday, American stocks had a turbulent February.
The S&P 500 fell 0.3%, while the Dow Jones Industrial Average fell 0.7%.
Meanwhile, the Nasdaq Composite fell 0.1%.
The yield on the ordinary 10-year US Treasury note increased to 3.92% on Tuesday afternoon.
The price of WTI crude oil in the United States has risen to more than $76.94 a barrel.
Additionally, the dollar index rose to $104.92 per dollar.
February
Wall Street saw a modest bounce on Monday following its worst week since 2023, with stocks closing marginally higher.
After a strong start in January, the three indices finished the month in the red.
On Tuesday, economic statistics showed that retail inventories, excluding autos, grew by 0.3%.
Bloomberg economists predicted a 0.1% increase.
Wholesale inventories, on the other hand, fell by 0.4%, falling below the consensus forecast of 0.1%.
Consumer confidence
According to the Confidence Board, American consumers were dissatisfied with the economy in February.
The Consumer Confidence Index fell from 106.0 to 102.9, falling short of consensus expectations of 108.5.
It wasn’t alone; the February Chicago PMI was also lower than expected, falling from 44.3 to 42.6.
Ben Ayer, senior economist at Nationwide, issued the following statement:
“Consumers and businesses are looking for ways to reduce expenses in anticipation of much weaker activity over the rest of the year.”
“The drop in consumer confidence in February aligns with weaker business confidence readings as the Fed’s sharp increase in interest rates start to bite.”
The house market
According to the S&P CoreLogic Case-Shiller Index, house prices declined 0.5% in December.
Nonetheless, housing prices increased by 4.6% year on year.
While being high, costs were still lower than the 4.8% experts predicted.
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Inflation
Despite improving economic conditions, inflation persists.
On Monday, Federal Reserve Governor Philip Jefferson dismissed arguments for raising the Fed’s 2% inflation objective.
He stated that he is not dismayed by the prospect of lowering the inflation rate.
Retail
Investors are expected to remain focused on the retail business this week, according to sources.
Target’s profits above analysts’ estimates on Tuesday, owing to consumer spending continuing to shift away from discretionary areas.
The retailer’s same-store sales climbed by 0.7%, above the 1.74% loss forecast.
The stocks gained almost 1% on Tuesday.
Shares
Bespoke Investment Group supplied data showing that 420 stocks reported profits in the previous week.
A number of firms who have reduced their guidance have more than quadrupled the percentage of companies that have increased their guidance, indicating that small-cap companies reporting late in the season are in for further difficulties.
Zoom shares rose after the company reported better-than-expected fourth-quarter results.
Its earnings per share of $1.22 were better than the expected 80 cents, and its sales were $1.12 billion.
Occidental Petroleum shares fell after the oil and gas company reported fourth-quarter earnings that fell short of Wall Street estimates on Tuesday.
Shares of Workday, a human-resources software business, not only increased but also surpassed forecasts.
They reported $1.65 billion in revenue vs $1.63 billion expected, a 20% increase year over year.
AMC Entertainment Holdings, Inc.’s stock was among those that fell.
It plummeted on Tuesday after a Delaware court announced a hearing on April 27.
The postponement will very certainly push back the conversion date of APE convertible units into common stock.
Tesla shares fell by almost 1% after Mexico’s president announced that the business would build a new factory in Monterrey, Mexico.
Further specifics, according to the Mexican president, would be revealed during Tesla’s investor day, with the factory likely to be huge.
Coinbase stock rose as concerns about cryptocurrency regulation eased.
The SEC slapped the firm with a subpoena on Monday as part of their ongoing investigation into cryptocurrency listings, digital asset custody, and platform operations, among other things.
Norwegian Cruise Line’s stock dropped after the company reported larger-than-expected losses.
As a result of rising gasoline and labor expenses, the firm anticipated dismal year-end expectations.
The Bank of Nova Scotia’s stock fell as a slowdown in its investment banking division reduced earnings from its capital markets section.
