Nasdaq climbs to second straight record, Dow, S&P little changed
Microsoft Corp. flirts with $2T market cap
Inflation is temporary, put new stocks to work: Market expert
Commonwealth Financial Network CIO Brad McMillan discusses Federal Reserve Chairman Jerome Powell's statement that inflation is temporary and his outlook for the markets.
U.S. equity markets ended little changed Wednesday amid a quiet session as investors continued to assess the Federal Reserve’s views on inflation.
The Dow Jones Industrial Average fell 71 points, or 0.2%, while the S&P 500 slipped 0.11% and Nasdaq Composite rose 0.13% to the second consecutive record close.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 43447.33 | -303.53 | -0.69% |
| SP500 | S&P 500 | 5878.16 | -71.01 | -1.19% |
| I:COMP | NASDAQ COMPOSITE INDEX | 18734.345478 | -373.31 | -1.95% |
The choppy trade comes a day after Fed Chairman Jerome Powell reiterated his belief that the recent uptick in inflation is transitory.
POWELL SAYS FED WILL WAIT FOR 'ACTUAL INFLATION' BEFORE RAISING INTEREST RATES
In stocks, Microsoft Corp. shares were in focus as the tech stalwart closes in on a $2 trillion valuation. Shares need to finish at or above $265.55 apiece in order for Microsoft to become the second company, behind Apple, to reach the level.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| MSFT | MICROSOFT CORP. | 426.89 | +1.69 | +0.40% |
| RIOT | RIOT PLATFORMS | 11.68 | -0.18 | -1.56% |
| MSTR | MICROSTRATEGY INC. | 327.67 | -0.71 | -0.22% |
Crypto-related names like MicroStrategy Inc. and Riot Blockchain Inc. continued to bounce back after bitcoin rallied to above $34,000 a coin after trading below $29,000 the prior session.
Elsewhere, Southwest Airlines Co. CEO Gary Kelly will transition to executive chairman in 2022. He will be replaced by Robert Jordan, who currently serves as executive vice president of corporate sales.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| LUV | SOUTHWEST AIRLINES CO. | 32.42 | +0.04 | +0.12% |
| WGO | WINNEBAGO INDUSTRIES INC. | 60.84 | -0.34 | -0.56% |
Fannie Mae and Freddie Mac shares were sharply lower after the U.S. Supreme Court ruled the structure of the agency that oversees the mortgage giants was unconstitutional. The case was sent back to a lower court for additional proceedings.
FANNIE MAE, FREDDIE MAC SHARES CRATER AFTER SUPREME COURT RULING
In earnings, Winnebago Industries Inc. reported record quarterly earnings and revenue as the pandemic fueled strong demand for an active outdoor lifestyle. The RV maker said its record backlog grew 252% from a year ago to 46,646 units.
Oil majors ExxonMobil Corp. and Chevron Corp. gained as oil prices held near their highest level in over two years.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| XOM | EXXON MOBIL CORP. | 120.75 | +0.18 | +0.15% |
| CVX | CHEVRON CORP. | 161.80 | +3.08 | +1.94% |
In commodities, West Texas Intermediate crude oil rose 23 cents to $73.08 a barrel and gold advanced $6 to $1,782.30 an ounce.
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Overseas markets were mostly lower.
France’s CAC 40 and Germany’s DAX 30 declined 0.91% and 1.15%, respectively, despite eurozone business growth accelerating at its fastest pace in 15 years. Britain’s FTSE 100 lost 0.22%.
In Asia, Japan’s Nikkei 225 slipped 0.03%, China’s Shanghai Composite climbed 0.25% and Hong Kong’s Hang Seng index surged 1.79%.