A trader wears a t-shirt with Reddit’s logo, at the New York Stock Exchange (NYSE) in New York City, U.S., March 21, 2024.
Brendan McDermid | Reuters
Stocks slipped on Friday, but the major averages headed for a winning week and the Dow Jones Industrial Average barreled toward its best week of the year.
The Dow Jones Industrial Average dipped 40 points, or 0.1%, and hovered close to the 40,000 level. The S&P 500 inched down 0.1%, while the Nasdaq Composite fell 0.2%.
All three major averages are tracking for healthy gains this week, with the S&P 500 on pace for a 2.4% pop and the Nasdaq rising 2.6%. The Dow is the outperformer of the three, up 2.7% through Thursday’s close and on pace for its best week since December.
FedEx rose more than 8% after posting adjusted earnings that beat analyst estimates, while Nike sank 8% on disappointing guidance and slowing China sales. Lululemon slid 17% on weak guidance and slowing growth in North America, and headed for its worst day since March 2020.
The major indexes closed at record levels on Thursday for a second day, and hit all-time intraday highs. Thursday was the fourth straight winning session for the three indexes.
One reason for this market optimism might stem from the policymaking Federal Open Market Committee’s expectation for three rate cuts this year even after a couple of hot inflation reports, according to Art Hogan, chief market strategist at B. Riley Wealth.
Investors have “always been more aggressive on rate hikes and more aggressive on rate cuts than the fed funds futures markets, but the Fed has delivered through the dot plot and we finally lined up,” he said.
“You get a couple of inflation data points that are a touch hotter, and I think realistically the Street’s thought process has become much more rational and lines up well with where the Fed is right now,” Hogan added.
