Stocks mixed as Biden taps Fed’s Powell for second term
Investors are preparing for a busy three days ahead of the Thanksgiving holiday.
FreedomWorks economist Stephen Moore argues Lael Brainard, the sole Democrat on the Fed's Board of Governors, 'would have been a disaster' as chair of the Federal Reserve.
U.S. stocks ended the session mixed after investors welcomed President Biden's re-nomination of Federal Reserve Chair Jerome Powell for a second term.
The Dow Jones Industrial Average tacked on over 17 points or 0.05% while the S&P 500 and Nasdaq Composite slipped 0.32% and 1.26%, respectively after touching fresh record highs early on in the session.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| I:DJI | DOW JONES AVERAGES | 49191.99 | -398.21 | -0.80% |
| SP500 | S&P 500 | 6963.74 | -13.53 | -0.19% |
| I:COMP | NASDAQ COMPOSITE INDEX | 23709.87251 | -24.03 | -0.10% |
Large-cap tech stocks weighed on the Nasdaq including Amazon, Microsoft and Google, while Apple maintained modest gains.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| AMZN | AMAZON.COM INC. | 242.60 | -3.87 | -1.57% |
| GOOGL | ALPHABET INC. | 335.97 | +4.11 | +1.24% |
| MSFT | MICROSOFT CORP. | 470.67 | -6.51 | -1.36% |
| AAPL | APPLE INC. | 261.05 | +0.80 | +0.31% |
With Powell at the helm for a second term, Biden also tapped Fed governor Lael Brainard as vice-chair. Investors took their nominations in stride as their prior working experience will likely represent continuity with monetary policy amid an ongoing effort to tackle inflation.
Biden announces his nominees for Chair and Vice Chair of the Board of Governors of the Federal Reserve System
FED'S LAEL BRAINARD: WHAT TO KNOW
Jerome Powell and Lael Brainard ( )
Oil rose 1.07% to $76.75-per-barrel level as reports suggested countries including China and perhaps the U.S. may tap the Strategic Petroleum Reserves with a decision expected as soon as Tuesday. The White House, telling FOX Business, "no decision has been made…The conversations are ongoing and we consider a range of tools for if and when action is needed."
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| USO | UNITED STATES OIL FUND - USD ACC | 73.47 | +1.81 | +2.53% |
Existing home sales increased 0.8% in October to a seasonally adjusted annual rate of 6.34 million, the fastest pace since January, and the Chicago Fed's national activity index rose to 0.76, up from -0.18 in September. Durable goods, GDP and inflation are among the reports slated for release on Tuesday and Wednesday.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| VG | VENTURE GLOBAL INC | 7.88 | +0.50 | +6.78% |
In deal news, Swedish telecom equipment maker Ericsson is buying U.S. cloud communications company Vonage in a $6.2 billion deal that will help it expand wireless services for business customers.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| RIVN | RIVIAN AUTOMOTIVE INC. | 18.85 | -0.30 | -1.57% |
| F | FORD MOTOR CO. | 13.98 | -0.04 | -0.25% |
| AMZN | AMAZON.COM INC. | 242.60 | -3.87 | -1.57% |
In auto news, shares of Rivian fell following news that the company has abandoned plans with Ford to develop electric vehicles together. Amazon remains a backer in the newly public electric vehicle maker. Meanwhile, shares of Tesla rose after CEO Elon Musk indicated the Model S Plaid could go on sale in China around March. The vehicle retails for around $129,000.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TSLA | TESLA INC. | 447.20 | -1.76 | -0.39% |
Retailers are also in focus with many Black Friday holiday sales already underway.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| TGT | TARGET CORP. | 108.65 | +2.49 | +2.34% |
| WMT | WALMART INC. | 120.36 | +2.39 | +2.03% |
| M | MACY'S INC. | 22.00 | +0.07 | +0.30% |
| KSS | KOHL'S CORP. | 20.48 | +0.74 | +3.75% |
In earnings news, Zoom and retailer Urban Outfitters will report results after the bell.
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| ZM | ZOOM COMMUNICATIONS INC. | 83.19 | -3.56 | -4.10% |
| URBN | URBAN OUTFITTERS INC. | 73.16 | +1.64 | +2.29% |