Market News

Wall Street ended lower on Thursday as investors reacted to inflation data near the Federal Reserve's target. Market participants assessed the third-quarter earnings results. The Nasdaq, the Dow and the S&P 500 closed in negative territory. However, last month was a week one for Wall Street.

How Did the Benchmarks Perform?

The Dow Jones Industrial Average (DJI) fell 0.9% or 378.08 points to close at 41,763.46. Seventeen components of the 30-stock index ended in negative territory, while 13 ended in positive.

The tech-heavy Nasdaq Composite declined 512.78 points or 2.8% to 18,095.15.

The S&P 500 lost 1.9%, or 108.22 points, to end at 5,705.45. Nine broad sectors of the benchmark index closed in the red, while two ended in the green. The Technology Select Sector SPDR (XLK), the Real Estate Select Sector SPDR (XLRE), and the Consumer Discretionary Select Sector SPDR (XLY) fell 3.2%, 1.8% and 1.5%, respectively.

The fear-gauge CBOE Volatility Index (VIX) increased 13.8% to 23.16. The S&P 500 posted 24 new 52-week highs and nine new lows; the Nasdaq Composite recorded 59 new highs and 159 new lows.

Inflation Nears Fed Target as Labor Market Remains Strong

September inflation moved closer to the Federal Reserve's 2% target, with the personal consumption expenditures (PCE) index up 0.2% for the month, bringing the annual rate to 2.1%, according to the Commerce Department. Core inflation, which excludes food and energy, rose 0.3% monthly and reached 2.7% year over year, slightly above estimates of 2.6%. While personal income rose 0.3%, consumer spending rose 0.5%.

The Department of Labor reported that initial claims decreased by 12,000 to 216,000 for the week ended Oct. 26, but ended below the consensus estimate of 230,000. The previous week’s data was revised upward by 1,000 to 227,000 from 228,000 reported earlier.

Continuing claims (those who have already received government aid and reported a week behind) decreased 26,000 to 1,862,000 for the week ended Oct. 19. The previous week's level was revised downward by 9,000 from 1,897,000 to 1,888,000.

The CME FedWatch Tool indicates a 100% probability of another rate cut in next week's Federal Open Market Committee (FOMC) meeting.

Q3 Earnings Results

International Paper Company IP reported that in the third quarter of 2024, adjusted earnings were $0.44 per share, ahead of the Zacks Consensus Estimate of $0.24 per share. The renewable materials company generated total revenues of $4.69 billion, beating the Zacks Consensus Estimate by 0.37%.

Norwegian Cruise Line Holdings Ltd. NCLH reported third-quarter 2024 adjusted earnings of $0.99 per share, surpassing the Zacks Consensus Estimate of $0.95 per share. The cruise company generated total revenues of $2.81 billion, outpacing the Zacks Consensus Estimate by 1.68%.

Twilio Inc. TWLO reported third-quarter 2024 adjusted earnings of $1.02 per share, surpassing the Zacks Consensus Estimate of $0.87 per share. The customer engagement platform company generated total revenues of $1.13 billion, beating the Zacks Consensus Estimate by 3.93%.

Consequently, the stock price of International Paper, Norwegian Cruise Line Holdings, and Twilio rose 13.3%, 6.3%, and 14.3%, respectively. Norwegian Cruise Line Holdings currently carries a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Monthly Roundup

In the past month, the Dow Jones Industrial Average has declined by 1.3%, the S&P 500 has shed 1%, and the Nasdaq Composite is down 0.5%.

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