Dow, S&P 500, Nasdaq slip with Powell speech, Trump-led sweep in focus

US stocks slipped on Thursday as the post-election rally paused, while investors assessed the impact of a Republican sweep of political power and awaited a Jerome Powell speech to set the tone on interest rate cuts.

The Dow Jones Industrial Average (^DJI) slipped 0.2%, while the S&P 500 (^GSPC) dipped 0.3%. The Nasdaq Composite (^IXIC) was down 0.3%, coming off a mixed day for the three major gauges.

Though the mood is muted, stocks are still near recent records after the latest consumer inflation data kept hopes for a December rate cut aloft. That optimism broadly held after a reading on wholesale inflation showed prices firmed slightly more than expected in October.

The focus is on how the Federal Reserve chair sees inflation developing as investors gauge the odds of rates going back to staying higher for longer. The market is already weighing the potential upward pressure on prices from President-elect Donald Trump’s policies.

Read more: What the Fed rate cut means for bank accounts, CDs, loans, and credit cards

Republicans held onto their slim majority in the House of Representatives, handing Trump and his party a “trifecta” — unified control of power across Washington. The sweep limits curbs on implementing the incoming president’s aggressive economic agenda, which has helped spur the post-election breakneck rally in stocks.

Worries about Trump’s America-first plans helped drag Chinese stocks down as much as 20% from their October high in Hong Kong, with tech hardest hit.

Tesla (TSLA) stock declined as much as 4% as the post-election “Trump trade” shows signs of fatigue.

Meanwhile Disney’s (DIS) stock surged 7% after quarterly earnings beat estimates as the entertainment giant’s streaming unit swung to a profit.

LIVE 8 updates

  • Bitcoin pares gains, hovers above $88,000

    Bitcoin (BTC-USD) pared earlier gains, hovering above $88,00 per token by 12:30 p.m. ET.

    The world’s largest cryptocurrency has been at the center of the Trump trade, which has catalyzed moves across a range of assets after Donald Trump’s White win last week.

    On Thursday morning each token was trading around $91,000 after reaching new highs north of $93,000 in the prior session.

    Year-to-date bitcoin is up about 100%.

  • Ines Ferré

    Bob Iger says Disney doesn’t ‘need more assets right now’ to thrive in ‘disrupted media world’

    Yahoo Finance’s Alexandra Canal reports:

    Disney (DIS) CEO Bob Iger doesn’t think the company needs to engage in mergers and acquisitions to compete in streaming.

    “We don’t really need more assets right now, either from a distribution or from a content perspective, to thrive in [a] disruptive media world,” the executive told investors on the company’s fourth quarter earnings call Thursday morning.

    “In a way, we’ve already consolidated,” he said, citing the acquisition of 21st Century Fox, announced in late 2017. “And while I think we’ll always look opportunistically at opportunities, as we’ve proven in the past, we certainly don’t shy away from those … We, in many respects, have already consolidated.”

    Disney shares rose on Thursday after the entertainment giant issued better-than-expected guidance and quarterly results beat estimates.

    Read more here.

  • Tesla slides 3% as post-election Trump trade wanes

    Tesla (TSLA) shares declined more than 3.5% on Thursday as investors are taking profits off the table following a massive surge in the “Trump trade” favorite.

    With Thursday’s slide, the stock is still up more than 25% since Donald Trump’s White House victory last week over optimism that CEO Elon Musk’s close ties to the president-elect will loosen regulations around autonomous driving.

    Meanwhile, on Wednesday the electric vehicle giant issued its sixth recall this year. The company recalled 2,400 Cybertruck pickups due to a faulty part could lead to a loss of power and increase the risk of a collision.

  • Ines Ferré

    Tapestry jumps 11%, Capri sinks after companies end merger plans

    Tapestry (TPR) shares soared on Thursday to an 11-year high after the parent of Coach and Capri Holdings (CPRI) called off its merger plans.

    The fashion companies mutually decided to abandon their $8.5 billion tie-up, citing regulatory hurdles.

    In a statement, Capri said that “the required closing condition of receiving necessary US regulatory approvals was unlikely to be met by the merger agreement’s outside date of February 10, 2025.”

    Shares of Capri fell 2% while Tapestry stock jumped as much as 11%.

  • Ines Ferré

    Disney pops 10% after earnings beat, guidance tops estimates

    Yahoo Finance’s Alexandra Canal reports:

    Disney (DIS) on Thursday reported fiscal fourth quarter earnings per share and revenue that topped Wall Street estimates, as its direct-to-consumer business built on recent momentum and swung to a profit.

    Strong guidance for the next two years also fueled investor optimism, sending shares up over 10% in early trading following the results.

    Read more here.

  • Ines Ferré

    Dow, S&P 500, Nasdaq tick higher with Powell speech on deck

    The major averages opened mixed on Thursday as investors awaited a speech from Fed Chairman Jerome Powell while assessing a Republican sweep in Congress.

    The Dow Jones Industrial Average (^DJI) ticked up 0.2%, while the S&P 500 (^GSPC) gained slightly. The Nasdaq Composite (^IXIC) also rose 0.1%.

    Republicans won control of the House on Wednesday, completing their 2024 election “trifecta.”

    Investors have been watching a rising US Dollar Index (DX-Y.NYB) and the impacts it could have on the markets. Commodities like oil and gold, which are invoiced in dollars, have been under pressure in recent days.

    Bitcoin (BTC-USD) held above $91,000 on Thursday morning after climbing past $93,000 in the prior session.

    The world’s largest cryptocurrency has been at the center of the Trump trade, which has catalyzed moves across a range of assets after Donald Trump’s White win last week.

    The token is up more than 30% since Election Day.

  • Ines Ferré

    Initial jobless claims drop to lowest level since May

    Initial jobless claims fell by 4,000 to their lowest level since May, at 217,000 for the week ending Nov. 9. The reading was less than the 220,000 claims expected by economists.

  • Jenny McCall

    Good morning. Here’s what’s happening today.

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