By Yasin Ebrahim
Investing.com – Dow failed Wednesday as Federal Reserve Board Chair Jerome Powell continued to need accommodative policies while investors continued to digest the latest quarterly results from companies. It rose in a stable session.
It increased by 0.28%, or 88 points. Compared to the added 0.06%, increased by 0.14%.
The market turned positive during the day with statements from Powell, who argued that price increases were unlikely to continue shortly after the pandemic and continued to counteract growing concerns about rising inflation.
“The lessons of the past, especially the labor market, and the more general economy, a patient and accommodative monetary policy stance is also important,” Powell told The Economic Club of New York on Wednesday about “the current state of the US labor market.” Said. .. “
“This means responding to a strong labor market but not tightening monetary policy,” Powell said, recognizing the economy’s ability to maintain a strong job market without unnecessarily increasing inflation. It was.
However, consumer discretionary stocks help General Motors curb profits in a wide range of markets in the biggest downturn. GM’s fourth-quarter results were offset by concerns about rising costs amid a continuing chip shortage.
General Motors (NYSE :) said the chip shortage, which has plagued electric vehicle makers across the industry, will cost between $ 1.5 billion and $ 2 billion this year, reducing stocks by 1%.
LYFT (NASDAQ :) reported its fourth-quarter results, which exceeded Wall Street’s estimates, and said it was on track to make EBITDA profits by the fourth quarter. Share has risen by more than 5%.
Meanwhile, Twitter (NYSE :) helped reduce losses in the broader tech sector after social media giants recovered 12% better than expected in the fourth quarter.
The hit on Twitter’s revenue was “mainly a global rebound of advertising from brand advertisers. This accounted for the majority of the company’s revenue, and when events and product launches came back, Twitter It represents an increasing demand for displaying digital ads to more viewers, “Wedbush said.
Energy inventories continue to support investors’ expectations that oil supply and demand will continue to tighten ahead of the expected surge in fuel demand as the economy resumes, as data showing expected weekly supply declines continues. Was pushed up by the rise of.
Crude oil inventories fell 6.64 million barrels last week compared to analysts’ forecast of 985,000 barrels of construction.
The Topseater Bee session on Wall Street precedes updates from Federal Reserve Board Chairman Jerome Powell on the Labor Market at Webinar at 2:00 pm Eastern Standard Time (1900 Greenwich Mean Time).
Powell previously said that the labor market has become hot, allowing inflation to move above its 2% target for some time, confirming market expectations that central banks are not in a hurry to tighten monetary policy. Stated.
In other news, retailers are betting on the Biden administration to legalize marijuana, so Reddit-led buying waves such as Canopy Growth (TSX :), Aphria (TSX :), and Tilray (NASDAQ :) Cannabis stock.
Still, Wall Street analysts cautioned, especially about canopy growth, which has more than doubled since the beginning of the year.
“I don’t think the basic risks / rewards for these levels of CGC stocks to allocate new money are attractive,” Oppenheimer said, but the enthusiasm of individual investors is in the short term. May continue to be a positive impetus for. “
Dow climbs as lyrical Powell wax about the need to maintain the status quo of stimulation by Investing.com
https://www.investing.com/news/stock-market-news/dow-in-wild-swings-as-falling-consumer-stocks-keep-gains-in-check-2415268 Dow climbs as lyrical Powell wax about the need to maintain the status quo of stimulation by Investing.com