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Wall Street closed lower on Tuesday as the rebound rally lost momentum. Market participants are waiting for the Fed Chairman’s lecture later this week in a key event of the central bank. Earnings results were mixed. All three major stock indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.2% to close at 40,834.97. Notably, 16 components of the 30-stock index ended in positive territory while 14 in negative zone. The blue-chip index ended a five-day winning run.
The tech-heavy Nasdaq Composite finished at 17,816.94, sliding 0.3% due to weak performance by technology giants. The tech-laden index terminated an eight-day winning streak for the first time since November 2023.
The S&P 500 declined 0.2% to finish at 5,597.12. Wall Street’s key benchmark terminated an eight-day winning streak for the first time since November 2023. Eight of the 11 broad sectors of the broad-market index ended in negative territory, while three in positive zone. The Energy Select Sector SPDR (XLE), the Materials Select Sector SPDR (XLB) and the Financials Select Sector SPDR (XLF) tanked 2.6%, 0.4% and 0.3%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 8.4% to 15.88. A total of 9.93 billion shares were traded on Tuesday, lower than the last 20-session average of 12.22 billion. Advancers outnumbered decliners on the NYSE by a 1.55-to-1 ratio. On Nasdaq, a 1.84-to-1 ratio favored advancing issues.
All Eyes on Jackson Hole Symposium
Market participants are eagerly waiting for the Fed’s upcoming annual Jackson Hole Economic Policy Symposium to be started from Aug 24. On Friday, the Fed Chairman Jerome Powell will deliver his speech. Investors will keenly analyze that lecture to find out clues regarding the central bank’s future course regarding the interest rate movement.
At present, the CME FedWatch shows a 100% probability that the Fed will reduce the benchmark lending rate by 25 basis points in September. If this materializes, it will be the first rate cut in more than four years. Notably, the Fed fund rate is currently in the range of 5.25-5.5%, its 23-year high level.
Mixed Earnings Results
Palo Alto Networks Inc. (PANW - Free Report) reported better-than-expected results for the fourth quarter of fiscal 2024. The company reported non-GAAP earnings of $1.51 per share for the fiscal fourth quarter, which beat the Zacks Consensus Estimate of $1.41. Palo Alto’s fiscal fourth-quarter revenues of $2.19 billion beat the Zacks Consensus Estimate of $2.16 billion and rose 12.3% from the year-ago reported figure. Fourth-quarter revenues also came above management’s previously provided guidance of $2.15-$2.17 billion.
Fabrinet (FN - Free Report) came out with quarterly earnings of $2.41 per share, beating the Zacks Consensus Estimate of $2.25 per share. This compares to earnings of $1.86 per share a year ago. These figures are adjusted for non-recurring items. The company posted quarterly revenues of $753.26 million, surpassing the Zacks Consensus Estimate by 2.55%. This compares to year-ago revenues of $655.87 million.
Lowe’s Companies Inc. (LOW - Free Report) posted adjusted quarterly earnings of $4.10 per share, which came ahead of the Zacks Consensus Estimate of $3.96. However, the figure marked a decline from earnings of $4.56 per share reported in the same period last year. Net sales of $23,586 million missed the Zacks Consensus Estimate of $23,907 million and fell 5.5% year over year.
Image: Bigstock
Stock Market News for Aug 21, 2024
Wall Street closed lower on Tuesday as the rebound rally lost momentum. Market participants are waiting for the Fed Chairman’s lecture later this week in a key event of the central bank. Earnings results were mixed. All three major stock indexes ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.2% to close at 40,834.97. Notably, 16 components of the 30-stock index ended in positive territory while 14 in negative zone. The blue-chip index ended a five-day winning run.
The tech-heavy Nasdaq Composite finished at 17,816.94, sliding 0.3% due to weak performance by technology giants. The tech-laden index terminated an eight-day winning streak for the first time since November 2023.
The S&P 500 declined 0.2% to finish at 5,597.12. Wall Street’s key benchmark terminated an eight-day winning streak for the first time since November 2023. Eight of the 11 broad sectors of the broad-market index ended in negative territory, while three in positive zone. The Energy Select Sector SPDR (XLE), the Materials Select Sector SPDR (XLB) and the Financials Select Sector SPDR (XLF) tanked 2.6%, 0.4% and 0.3%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was up 8.4% to 15.88. A total of 9.93 billion shares were traded on Tuesday, lower than the last 20-session average of 12.22 billion. Advancers outnumbered decliners on the NYSE by a 1.55-to-1 ratio. On Nasdaq, a 1.84-to-1 ratio favored advancing issues.
All Eyes on Jackson Hole Symposium
Market participants are eagerly waiting for the Fed’s upcoming annual Jackson Hole Economic Policy Symposium to be started from Aug 24. On Friday, the Fed Chairman Jerome Powell will deliver his speech. Investors will keenly analyze that lecture to find out clues regarding the central bank’s future course regarding the interest rate movement.
At present, the CME FedWatch shows a 100% probability that the Fed will reduce the benchmark lending rate by 25 basis points in September. If this materializes, it will be the first rate cut in more than four years. Notably, the Fed fund rate is currently in the range of 5.25-5.5%, its 23-year high level.
Mixed Earnings Results
Palo Alto Networks Inc. (PANW - Free Report) reported better-than-expected results for the fourth quarter of fiscal 2024. The company reported non-GAAP earnings of $1.51 per share for the fiscal fourth quarter, which beat the Zacks Consensus Estimate of $1.41. Palo Alto’s fiscal fourth-quarter revenues of $2.19 billion beat the Zacks Consensus Estimate of $2.16 billion and rose 12.3% from the year-ago reported figure. Fourth-quarter revenues also came above management’s previously provided guidance of $2.15-$2.17 billion.
Fabrinet (FN - Free Report) came out with quarterly earnings of $2.41 per share, beating the Zacks Consensus Estimate of $2.25 per share. This compares to earnings of $1.86 per share a year ago. These figures are adjusted for non-recurring items. The company posted quarterly revenues of $753.26 million, surpassing the Zacks Consensus Estimate by 2.55%. This compares to year-ago revenues of $655.87 million.
Lowe’s Companies Inc. (LOW - Free Report) posted adjusted quarterly earnings of $4.10 per share, which came ahead of the Zacks Consensus Estimate of $3.96. However, the figure marked a decline from earnings of $4.56 per share reported in the same period last year. Net sales of $23,586 million missed the Zacks Consensus Estimate of $23,907 million and fell 5.5% year over year.
Stock prices of Palo Alto and Fabrinet jumped 7.2% and 15.7%, respectively. While the stock price of Lowe’s fell 1.2%. Palo Alto currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 (Strong Buy) Rank stocks here.