Stock market today: S&P 500, Dow futures pause near records ahead of key inflation data
Published On Nov 27, 2024, 8:42 AM
US stock markets paused near record highs as investors awaited a key inflation report that might influence future interest rate decisions by the Federal Reserve. The October report on the Personal Consumption Expenditures (PCE) index is closely watched, with expectations of an increase from 2.7% in September to 2.8%. The GDP growth rate for the third quarter remains at 2.8%, and initial jobless claims dropped to 213,000. Major corporate news includes Dell's shares dropping over 10% after revenue fell due to declining PC demand, and HP's stock falling 8%. Automakers like GM and Ford also saw stock drops due to potential trade tariffs by former President Trump against Mexico, China, and Canada.
Stock Forecasts
DELL
Negative
The anticipation surrounding the inflation data suggests that the market may remain cautious, especially if the data indicates sustained inflation, which could reduce expectations for rate cuts. Dell and HP's disappointing earnings and guidance reflect broader industry challenges, suggesting potential weakness in the tech sector.
GM
Negative
Ford and GM are heavily impacted by potential tariffs. If these tariffs are implemented, it could harm their profitability due to increased costs. This suggests that, in the short term, investor sentiment around these stocks could remain negative, while any delay or cancellation of tariffs could provide an upside.
ANF
Negative
A strong consumer reaction to the uncertainties around tariffs could affect overall retail stocks, including Abercrombie & Fitch. If these uncertainties linger, it may negatively impact the stock prices in the retail sector.
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