Stocks pop after GDP...

Stocks pop after GDP growth revised lower: Stock market news today

By Yahoo Finance August 31, 2023 In Bitcoin, Stock Market, Trading

Stocks on the Nasdaq led gains Wednesday as Wall Street eyed a fourth day of gains after revised GDP data showed the US economy grew slower in the last quarter than previously estimated.

The S&P 500 (^GSPC) rose about 0.5% while the Dow Jones Industrial Average (^DJI) popped 0.2%. The Nasdaq Composite (^IXIC) increased 0.7%.

The benchmarks erased earlier small losses after a fresh reading on US GDP showed the economy grew 2.1% in the second quarter, compared with a previous official estimate of 2.4%. Meanwhile, private-sector jobs in August as reported by ADP came in weaker than expected.

The data comes amid hopes for a “soft landing” for the economy and plays into assessments of whether the Federal Reserve is done hiking interest rates and potentially denting the economy. Signs of a slowdown in the labor market helped lift the major US gauges to gains on Tuesday.

Both releases will set the stage for Thursday’s PCE inflation report and Friday’s August jobs report, seen as crucial data points that can steer policymakers’ thinking. After this summer’s stronger-than-expected data, the Fed has noted the economy may not be cooling as it expected, Chair Jerome Powell acknowledged last week.

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J36 minutes ago

Stocks rise in afternoon trade

All three of the major averages were in the green on Wednesday afternoon as investors digested economic data that showed signs of softening in the labor market and slowing growth in the US economy.

The S&P 500 (^GSPC) rose about 0.5% while the Dow Jones Industrial Average (^DJI) popped 0.2%. The Nasdaq Composite (^IXIC) popped 0.7%.
The personal computer sales slump is still loading

HP (HPQ) stock is under pressure on Wednesday after another disappointing quarter of PC sales.

Yahoo Finance’s Brian Sozzi breaks down the state of the market

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The PC market remains a few fuses short.

Shares of PC-making giant HP Inc. (HPQ) plunged over 8% in early trading on Wednesday as persistent tepid demand for computers led to a full-year profit warning.

HP now sees full-year adjusted earnings of $3.23 to $3.25 a share, down from $3.30 to $3.50 previously. Free cash flow is targeted at $3 billion compared to a prior outlook of $3.25 billion.

“This outlook is largely driven by the continued aggressive pricing environment in PCs, sluggish demand in China, and enterprise demands,” HP CEO Enrique Lores told analysts on the earnings call. “Notwithstanding the actions we are taking to mitigate these headwinds, we believe it’s prudent to lower our outlook based on near-term market reality.”

The market reality led to a challenging quarter for HP. Fiscal third quarter sales fell 9.9% from a year ago to $13.2 billion. Consumer PC sales dropped 12%, while sales to businesses fell 11%. And adjusted earnings per share declined 17% from a year earlier.

HP isn’t alone in shedding light on the continued challenges of getting consumers to upgrade their pandemic PC purchases.

Best Buy (BBY) said on Tuesday that its comparable store sales in the computing and mobile phone category declined by 6.4%. A year earlier, sales in the category tanked 16.6%.

Best Buy CEO Corie Barry told analysts there are signs of “stabilization” in the PC category, with incremental quarterly improvement in laptop sales. But Barry acknowledged the recovery for the category won’t be “linear.”

Additionally, Apple’s (AAPL) earnings several weeks ago revealed a 7.3% decline in sales of Macs.

Worldwide PC shipments tallied 59.7 million units in the second quarter, a 16.6% decline year over year according to Gartner. Lenovo, HP, Dell, Apple, Acer, and Asus all saw shipment declines in the quarter, Gartner’s data shows.
J2 hours ago

Stocks trending in morning trade

HP Inc. stock (HPQ) led the Yahoo Finance trending tickers page on Wednesday morning after the technology company said PC pricing has not “recovered as quickly” as expected. The company’s quarterly revenue of $13.2 billion slipped 10% from a year ago and came up short of Wall Street’s expectations for $13.4 billion. HP stock fell more than 8% after the news.

Coinbase (COIN) remained trending a second straight day, after getting a big boost on Tuesday after a US appeals court ruled for crypto firm Grayscale and against the Securities and Exchange Commission in a lawsuit. The decision paves the way for the first Bitcoin ETF in the US.

Meanwhile, Bitcoin (BTC-USD) also stayed in focus for a second session after the ruling, trading just above $27,000.

Mastercard (MA) shares popped more than 1% after The Wall Street Journal reported the credit card company is planning to raise its fees.
J3 hours ago

Signs of a slowing economy has been good news for stocks

After a string of stronger-than-expected economic data throughout the summer, Federal Reserve Chair Jerome Powell noted in his speech at the Jackson Hole Economic Symposium that the Fed was monitoring the US economy.

“We are attentive to signs that the economy may not be cooling as expected,” Powell said Friday at the Jackson Hole Economic Symposium in Wyoming.

“Additional evidence of persistently above-trend growth could put further progress on inflation at risk and could warrant further tightening of monetary policy,” he added.

This week has brought signs the economy may be headed to below-trend growth. Data out Tuesday showed job openings in July fell below 9 million for the first time in more than two years, and a consumer confidence survey revealed Americans are feeling more wary about the labor market.

Then on Wednesday, US economic growth for the second quarter was revised downward and a release from ADP showed private-payroll additions fell from 371,000 in July to 177,000 in August.

Stocks jumped after both data releases on Tuesday and Wednesday, as investor bets on the Fed holding rates steady at its September meeting shot up from 78% on Monday to 90% on Wednesday morning.

“The downgrade to Q2 GDP growth will be welcomed by Fed officials and reinforces our expectations for a policy pause in September but the door will remain open to further tightening,” EY senior economist Lydia Boussour, EY senior economist, wrote in a note to clients.
J4 hours ago

Stocks open higher

Stocks popped slightly after the opening bell on Wednesday as investors digested weaker-than-expected private-sector labor market data and a downward revision to second quarter economic growth.

The S&P 500 (^GSPC) rose about 0.2% while the Dow Jones Industrial Average (^DJI) popped 0.25%, or roughly 75 points. The Nasdaq Composite (^IXIC) hovered just above the flatline.
J4 hours ago

HP, Conn’s, and bitcoin: Stocks and crypto trending in premarket trading

Here are some of the stocks and crypto assets leading Yahoo Finance’s trending tickers page in premarket trading on Wednesday.

HP (HPQ) shares fell by 8% as weak PC prices resulted in mixed results from the computer maker.

Outlook Therapeutics, Inc. (OTLK) shares plummeted by 78% premarket after the FDA refused to approve its drug for the treatment of retinal diseases.

Conn’s (CONN) stock price rose 9%, despite reporting a loss of $33.5 million in its fiscal second quarter.

Bitcoin’s (BTC-USD) price rose 5% as it benefited from digital currency asset manager Grayscale’s victory against the US Securities and Exchange Commission (SEC).
K7 hours ago

Stock futures slip with GDP, ADP jobs data ahead

The major US stock gauges were poised Wednesday to pull back from the solid gains logged in the previous session, as investors waited for more insight on the health of the economy.

Futures on the S&P 500 (^GSPC) were down 0.09%, while those on the Dow Jones Industrial Average (^DJI) were flat. Contracts on the tech-heavy Nasdaq 100 fell 0.19%.

In focus are the ADP private-sector employment report and an update on second quarter GDP due later.