Stocks climb as S&P sets intraday record and eyes all-time close

On Jan 19, 2024

Stocks climbed on Friday, pushing the S&P 500 to a new intraday record and setting up the benchmark index for an all-time high at the close.

The S&P 500 (^GSPC) rose 1.1% to sit comfortably above 4,800. Meanwhile, the tech-heavy Nasdaq Composite (^IXIC) jumped 1.5%, and the Dow Jones Industrial Average (^DJI) gained 1%, or nearly 400 points.

Focus has turned to Big Tech to potentially kickstart a lagging stock market now that the key drivers of the late 2023 rally have waned. Thursday’s tech-led surge in stocks put the S&P 500 within striking distance of its all-time closing high of 4,796.56 and snapped a three-day losing streak for the Dow.

But stocks have had a bumpy holiday-shortened week as investors reacted to policymakers’ comments, economic data, and corporate earnings in a bid to gauge the likelihood of a Federal Reserve pivot. The market is still closely watching for cues to the timing of rate cuts, which could set the tone for corporates this year.

A widely followed gauge of predictions for the Fed’s next move is registering fading hope for an interest rate cut to arrive soon. Market bets on the Fed lowering rates during their upcoming March policy meeting have fallen below 50%, according to the CME FedWatch Tool on Friday afternoon. That figure was 80% just a week ago, highlighting the new dose of Fed pessimism that has set in and how quickly sentiment around the central bank’s future moves can change.

In individual stocks, iRobot (IRBT) shares were down 29% after a report that EU regulators plan to block Amazon’s (AMZN) $1.4 billion acquisition of the Roomba maker. Meanwhile, Macy’s (M) slipped over 3% after the retailer said it is cutting 2,350 jobs and closing five stores.

Quarterly results from Travelers (TRV), Regions Financial (RF), and banks are on the earnings docket Friday. In economic updates, a December reading on existing home sales is due, as well as a look at consumer sentiment from the University of Michigan.

Elsewhere, a reprieve in the US government funding saga came after lawmakers passed a stopgap bill to avert a looming shutdown.

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Fri, January 19, 2024 at 7:45 PM GMT

Existing home sales sink to slowest pace in 30 years in 2023

The affordability crunch fueled a record slump in existing home sales year, as elevated rates and risking home prices pushed sales down to the lowest level in decades.

On an annual basis, existing home sales fell to 4.09 million — the lowest level in 30 years — and were 19% lower than in 2022, reports Yahoo Finance’s Gabriella Cruz-Martinez.

The median sales price for a home in 1995 was $114,600, according to the the National Association of Realtors. While people’s incomes were lower, home prices were much more affordable. By contrast, the median price for a home reached a record high of $389,800 in 2023.

Year-over-year sales of previously owned homes declined by 6% and came in weaker than predicted by economists polled by Bloomberg.

Existing home sales fell 1% last month from November to a seasonally adjusted annual rate of 3.7 million, the NAR said Friday. That marked the lowest sales activity since August 2010, when 3.68 million sales were recorded.
Fri, January 19, 2024 at 7:00 PM GMT

Stocks trending in afternoon trading

Here are some of the stocks leading Yahoo Finance’s trending tickers page during afternoon trading on Friday:

Meta (META) Shares of the social networking company rose 1.5% to a new record high as CEO Mark Zuckerberg doubled down on the strategy to focus on AI. He announced an expansion of its AI infrastructure Thursday, with plans to build Meta’s own artificial general intelligence, or AGI.

Coursera (COUR): While some companies are buoyed by AI excitement, other sectors are on the receiving end of what many see as a major technological disruption. The online course provider Coursera fell more than 11% Friday afternoon following a ratings downgrade of Sell from Neutral from Goldman Sachs analyst Eric Sheridan. He said that AI software tools pose a major risk to courseware providers, including Coursera Chegg (CHGG) and Duolingo (DUOL).

iRobot (IRBT): Following a report that the EU will seek to block Amazon’s deal to purchase the company for $1.7 billion, shares plunged Friday morning. EU officials previously raised concerns about the proposed acquisition late last year, according to the Wall Street Journal, contending that the purchase would restrict competition in the market for robot vacuum cleaners. Shares were down close to 30%.

Spirit Airlines (SAVE): Shares jumped more than 20% after the carrier raised its fourth-quarter guidance, rebounding somewhat following a significant hit to the stock took after a US federal judge blocked JetBlue Airways’ (JBLU) acquisition of the budget airline.
Fri, January 19, 2024 at 6:15 PM GMT

Spirit rebounds 22% after raising guidance, assessing debt refinance

Spirit shares…

Stocks climb as S&P sets intraday record and eyes all-time close

Existing home sales sink to slowest pace in 30 years in 2023

Stocks trending in afternoon trading

Spirit rebounds 22% after raising guidance, assessing debt refinance