Dow up but rates worries still weigh on Wall Street
The S&P 500 and Nasdaq closed lower on Thursday, extending their losing streak that kicked off 2024, although the Dow Jones eked out a win on the back of financial stocks and strong jobs data. For the S&P 500, this is the worst start to a year since it began 2015 with a three-session skid, as tech-focused investors continued to take profits after a blistering rally in the final weeks of last year. Bets that the Federal Reserve could start reducing rates this year had driven much of the gains toward the end of 2023, though the latest minutes from the central bank's December policy meeting did not offer many clues on when the easing might commence. Financials was one of the few gainers among the S&P 500 sectors, underpinned by Allstate, which rose 2.4 percent to close at an all-time high after Morgan Stanley lifted its rating on the insurer to "overweight." Banks were strong performers ahead of the start of earnings season next week. JPMorgan Chas and Truist Financial were among those which advanced, up 0.7 percent and 1.3 percent respectively, after both received positive analyst reports from BofA Global Research. "We're setting up for significant relative outperformance of the strongly managed and financed banks and other financials, as compared to other, more expensive areas of the market," said Ian Lapey, portfolio manager of The Gabelli Global Financial Services Fund. Among the latest economic data, the ADP National Employment report showed US private employers hired more workers than expected in December, pointing to persistent labor market strength that should continue to sustain the economy. This came ahead of official US employment data due on Friday. The S&P 500 lost 0.34 percent, to end at 4,689 points, while the Nasdaq lost 0.56 percent, at 14,510. The Dow Jones rose 0.03 percent, to 37,440. A number of big-tech names ended lower, with Amazon.com down 2.6 percent and Alphabet declining 1.8 percent. Apple shares slid 1.3 percent after brokerage Piper Sandler downgraded the iPhone maker to "neutral," days after Barclays also cut its rating. Mobileye Global sank 24.5 percent after forecasting preliminary fiscal 2024 revenue below estimates, while Walgreens Boots Alliance dropped 5.1 percent after the US pharmacy chain nearly halved its dividend. (Reuters)