The Dow Jones Industrial Average fell Wednesday as inflation came in worse than feared. The Fed minutes showed officials discussed cutting back on a stimulus program, and comes after a senior Federal Reserve official touted tapering. Apple (AAPL) fell again, while JPMorgan Chase (JMP) tumbled on earnings.
Stocks were pressured as new inflation data came in worse than expected. The Labor Department said consumer prices rose 0.4% in September, up from 0.3% in August and above Econoday’s forecast for a 0.3% increase.
On a year-over-year basis, the consumer price index rose 5.4%, slightly higher than estimates for 5.3%. The 10-year Treasury yield fell 4 basis points to 1.54%.
Fed Minutes Due As Tapering Pressure Builds
The minutes of the Sept. 21-22 Fed meeting showed asset purchases could end by mid-2022.
The Federal Open Market Committee reviewed plans to begin reducing their bond-buying stimulus program in November, and purchases could be halted completely by the middle of next year.
The purchase of bonds has formed a key plank of the central bank’s effort to stimulate growth after the economy was rocked by the coronavirus pandemic.
The minutes come after St. Louis Federal Reserve President James Bullard once again struck a hawkish tone on tapering. He told CNBC the central bank should be aggressive in how it approaches dialing back its monthly bond-buying program.
“I’ve been advocating trying to get finished with the taper process by the end of the first quarter next year,” he said.
Bullard also said he believes there is only a 50-50 chance current inflation pressures are transitory.
Nasdaq Gains Amid Mixed Action
U.S. Stock Market Today Overview
Last Update: 1:28 PM ET 10/13/2021
The S&P 500 sectors were mixed, with utilities and materials leading. Financials were lagging most.
Small caps were battling back into positive territory, with the Russell 2000 up 0.2%.
Growth stocks were managing to give the bears a bloody nose. The Innovator IBD 50 ETF (FFTY) was up 1.3%.
Dow Jones Today: Apple Stock Falls, JPMorgan Earnings Disappoint
The Dow Jones Industrial Average edged 0.1% lower.
Apple stock was one of the worst laggards, falling around 1%. The stock was hit after Bloomberg reported it will likely have to cut its 2021 iPhone production goal of 90 million handsets by up to 10 million handsets due to extended chip shortages.
Apple stock has traded below its 50-day line for nearly a month. The stock is currently shaping a flat base with a 157.36 buy point, according to MarketSmith.
Fellow Dow Jones stock JPMorgan fell more than 2% in heavy trade to test its 50-day line. JPMorgan stock slipped below a 163.93 buy point of a cup with handle. Early Wednesday, the bank reported better-than-expected Q3 earnings, kicking off a big week for financial earnings.
It earned $3.74 a share on revenue of $30.44 billion, well above FactSet estimates for $2.93 a share on revenue of $29.8 billion.
However, American Express (AXP) was the biggest loser on the Dow Jones today. It fell more than 4%, which comes after a notable period of outperformance.
Datadog Sits In Buy Zone; Three Others Pass Entries
Datadog is sitting in a buy zone as it rebounds off its 10-week line. The ideal buy point here is 140.38 and it is actionable as high as 154.42.
The data analytics stock was promoted onto Leaderboard from the Leaders Watchlist as it continues to make bullish strides.
Auto parts play LKQ is in a buy zone after passing a flat-base entry point of 53.27.
The relative strength line is spiking, and it boasts good overall performance. However, earnings are due in 15 days, which makes buying now risky.
Boyd Gaming is just below its buy point after peeking above a cup-with-handle entry of 67.50.
The casino stock is seeing its RS line rise, but earnings performance has been hit by the Covid-19 pandemic.
New issue Procept BioRobotics is in a buy zone after breaking out of an IPO base. The ideal buy point here is 44.29, according to MarketSmith. Low volume adds even more risk here.
Making any purchases during a market correction is not advised, as the risk of drawbacks is greatly increased.