The Dow Jones Industrial Average closed lower as House Speaker Kevin McCarthy made a debt ceiling pledge. Blantyre (PLTR) after CEO Alex Karp bragged about his demonstration of artificial intelligence, while PayPal (PYPL) retracted after its quarterly report.
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Things have been relatively quiet on the breakthrough front. but MongoDB (mdb) managed to move above a buy point.
Stocks fell after New York Federal Reserve Chairman John Williams said interest rates could rise if inflation fails to come down. He also said that the FOMC’s “measures to rebalance the economy” would take time to take full effect.
The 10-year Treasury yield rose one basis point to 3.53% while the two-year yield rose three basis points to 4.04%, making the yield curve more inverting.
House Speaker McCarthy pledges debt ceiling
A continuing concern for investors is the current battle over raising the federal debt ceiling.
McCarthy dismissed the idea of a short-term deal before meeting with President Joe Biden and congressional leaders today to discuss the issue.
“No, no, no. We shouldn’t be launching (the negotiations) (into the future). Let’s just get this done now,” McCarthy of California told NBC News Tuesday.
This means that any White House effort to secure a three-month debt ceiling extension appears dead on arrival. Republicans are eager to secure spending cuts as part of any deal to raise the federal debt limit.
But President Biden has been resolute in seeking to increase the debt ceiling without spending cuts. However, he has said he is open to talking about cuts as a separate matter.
The United States is in danger of defaulting on bonds if politicians cannot solve the problem.
Nasdaq lags as small caps end
The Nasdaq trailed the other major indices as it ended the session down 0.6%. EV stock Lucid (LCID) fell 5.6%.
The Standard & Poor’s 500 index fell 0.5 percent. dish network (Dish) suffered here as it fell 11.1%, extending from a long slump. It turned out on Monday that Dish is losing pay-TV subscribers faster than expected.
The S&P 500 sectors closed mainly negative. Only Energy, Industries, and Consumer Appreciation finished in green. Technology and materials were the worst performers.
Smaller companies trimmed losses of late, with the Russell 2000 closing up 0.2%. However, growth stocks wowed with the Innovator IBD 50 ETF (fifty) closure is nominally positive.
Dow Jones Today: Goldman Files Discrimination Lawsuit
The Dow Jones did better than the other major indexes but still closed lower. It fell 57 points, or 0.2%.
Boeing (Bachelor’s) was the best performer, up 2.3%. Intel (INTC) lagged most of its peers on the Dow Jones today as it fell by 2.2%.
Goldman Sachs (p) ended the session down 0.5%. GS stock lost ground on its 50-day moving average. The company agreed to pay $215 million to settle a gender discrimination lawsuit. As part of the settlement, the bank will hire an independent expert to “conduct additional studies on shareholder equity in wages.”
Palantir shares rise amid AI claims
Palantir stock was one of the best performing stocks in the stock market today after its earnings report.
PLTR shares rose after CEO Alex Karp boasted about the company’s ability to capitalize on the current artificial intelligence craze.
“The depth of engagement and demand for our new AI platform (AIP) is unprecedented,” he said. “We are currently mobilizing our corporate and sales teams to transform this organic and internal interest into expanding our reach within the market.”
Karp said the company’s AI platform will be available to “select customers” this month.
The company also posted a profit of 5 cents in the first quarter of the year while revenue rose 18% to $525 million. This was better than analysts’ expectations.
PLTR stock surged through its moving averages as it rose 23.3%. remains just shy of entering 10.41, MarketSmith’s analysis appears.
PayPal stock plunges after reporting
PayPal stock fell after the company’s earnings late Monday.
Earnings per share rose 33% to $1.17 and a 9% rise in revenue to $7.04 billion, with analyst opinion outperforming earnings per share of $1.10 on revenue of $6.98 billion.
Total payments processed from commercial customers rose 10% to $354.5 billion, also above Wall Street expectations. But while the company raised its expected adjusted earnings growth to about 20%, to $4.95 a share, it lowered its margin forecast.
PayPal stock is down and losing ground on its major moving averages. It ended the session down 12.7%. PYPL is now down about 12% so far in 2023.
Out of Dow Jones: Introducing MongoDB Stock Tests
On a tough day for hacks, MongoDB stock stood out by climbing above its entry level.
The database software play is trading in buy territory after vacating a buy pip of 248.25.
This is the first stage pattern, and it is positive. Inflammatory bowel disease research has found that such early-stage patterns are more likely to yield significant gains.
On the other hand, volume was flat, which is a bad sign of a breakout.
Overall performance is stellar, with the stock earning a composite IBD rating of 95 out of 99. Big Money has also been a net buyer recently, giving MDB an accumulation/distribution rating of B.
Please follow Michael Larkin on Twitter at @employee For further analysis of growth stocks.
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