The Dow Jones Industrial Average and other key indexes pulled back slightly from their recent highs, maintaining modest gains in the afternoon session as investors processed the latest inflation data from September. Salesforce emerged as the standout performer within the Dow, showing significant resilience, while Nvidia struggled to gain momentum. After releasing encouraging earnings, Victoria’s Secret saw a notable surge in its stock price, while Palantir Technologies aimed to extend its favorable performance streak.
The Dow edged up by a mere 0.1%, dropping back below the 48,000 threshold after breaching it briefly. Salesforce led the way with a robust 5% gain, while the S&P 500 and Nasdaq composite each inched up by 0.1% and 0.2%, respectively.
In contrast, small-cap stocks lagged, with the Russell 2000 index declining by 0.5%. Trading volume was notably higher on the Nasdaq compared to the New York Stock Exchange. On the Nasdaq, the number of declining stocks slightly outpaced advancing ones, whereas the NYSE showed a small edge for gainers over losers.
Other notable financial indicators included a slight rise in the 10-year Treasury yield to 4.15% and a lift in oil prices to approximately $60.20 per barrel. Meanwhile, Bitcoin experienced a downturn of around 3.5%, falling to the $89,000 mark.
### Victoria’s Secret Surges on Strong Earnings
Victoria’s Secret experienced a remarkable rally, climbing over 11% in heavy trading after surpassing analysts’ expectations for its fiscal third-quarter results and reporting a smaller loss than anticipated. The company’s revenue increased by 9%, marking its highest level in two years. Management projects fourth-quarter sales to be between $2.17 billion and $2.2 billion, along with a positive revision of its earnings forecast for fiscal 2025, now estimated between $2.40 and $2.65 per share, significantly higher than previous guidance.
This impressive performance propelled the company’s stock to levels not seen since May 2022, and it has nearly tripled in value since July.
In contrast, Nvidia experienced a minor setback, slipping 0.9% and remaining below its 50-day moving average. Palantir Technologies saw a rise of 1.1%, keeping its momentum alive for eight out of the last nine sessions, and is currently testing its 50-day line.
Cooper Companies also made headlines with a slight gain of 7.7% after exceeding profit and sales forecasts, providing optimistic earnings guidance for the upcoming year, though it still grapples with a 10% decline year-to-date.
### Inflation Data and Market Reactions
Recent inflation data has revealed annual increases in consumer prices, with the personal consumption expenditures index rising by 3% year-over-year, exceeding the expected 2.8%. Core prices also rose by 3%, above the anticipated 2.9%. In light of this, traders are increasingly expecting the Federal Reserve to implement a quarter-point cut to interest rates this month.
Among significant market movements, Netflix’s stock took a hit after announcing its acquisition of Warner Bros. assets, a deal valued at about $82 billion. Despite the strategic win, the stock fell more than 3%, as investors reacted to potential regulatory hurdles.
### Notable Company Updates
In the tech sector, SoFi Technologies saw its shares drop 6.5% after announcing a new stock offering. Conversely, Reddit managed to maintain a positive trajectory, climbing 4% on the heels of recent momentum.
Adobe Systems took the spotlight within the Nasdaq-100 index, gaining 5.5% ahead of its impending earnings report. Additionally, the semiconductor sector displayed strength, with the VanEck Semiconductor ETF increasing by 1.5%, bolstered by Broadcom’s early gains.
As the market continues to fluctuate based on economic indicators and company earnings, investors remain cautious yet optimistic about future opportunities.
