US stocks close mixed session as investors await Fed guidance on interest rates and inflation

4:05pm: US equities drop ahead of Fed guidance

US stocks fell in mixed session as investors awaited guidance for the US Federal Reserve on interest rates and inflation.

The Dow Jones Industrial Average declined from its record high and snapped a seven-day winning streak amid the passage of the $1.9 trillion stimulus bill. Concerns are now growing about rising interest rates and that effect on the recovery. 

On the day, the DJIA dropped 127 points, or 0.39%, to 32,825. The S&P 500 fell 0.16% to 3,962 but the tech-heavy Nasdaq rose 0.09% to 13,471.

12.28pm: US benchmarks still mixed

Wall Street shares were mixed at lunch and the Nasdaq was the standout performer, while the S&P 500 was flat.

The Nasdaq added  over 91 points at 13,551, while the Dow Jones Industrial Average dropped over 147 points at 32,805. The S&P 500 is around flat at 3,969.

“The NASDAQ 100 is the outperformer of the major US indices and the tech component of the S&P 500 is helping the index outstrip the Dow Jones. It seems that traders are seeking out relatively cheap tech stocks today, in light of the fact they fell the most in the past month,” said analyst at CMC Markets David Madden.  

Traders were also mulling over US retail sales data for February, which showed a 3% contraction, greatly undershooting the negative 0.5% economists had been expecting, but conversely January’s stellar 5.3% reading was revised up to 7.6%.

“When you take an average of the two updates, it still paints a positive picture with respect to consumer appetite,” said Madden.

“Seeing as January’s report was heavily influenced by the $900 billion spending programme that was introduced in late December, it seems likely that future reports will reflect the $1.9 trillion stimulus package.”

In company news, Moderna Inc (NASDAQ:MRNA) shares shot up over 7% to US$154.40 as it has emerged the pharma giant is now carrying out a study of testing its coronavirus (Covid-19) vaccine on children.

11.30am: Proactive North America headlines:

Cloud Nine Web3 Technologies Inc (CSE:CNI) (OTCMKTS:CLGUF) closes its VPN platform acquisition from Victory Square Technologies

One World Lithium Inc (CSE:OWLI) (OTCQB:OWRDF) to resume Phase III drilling program at Salar del Diablo lithium brine property in April

Mountain Valley MD Holdings Inc (CSE:MVMD) (OTCQB:MVMDF) to start husbandry animal trials of Ivectosol 1% technology in Bangladesh

Codebase Ventures Inc (CSE:CODE) (OTCQB:BKLLF) taps entrepreneur Jacob Chernoff to assist in its Bitcoin mining and blockchain investments

Safe-T Group Ltd (NASDAQ:SFET) (TASE:SFET) announces the availability of the first-ever biometric-based Zero Trust Network Access (ZTNA) solution

Predictiv AI Inc (CVE:PAI) (OTCMKTS:INOTF) (FRA:71TA) teams up with Waterloo Artificial Intelligence Institute at the University of Waterloo in Ontario

Midwest Energy Emissions Corp (OTCQB:MEEC) signs two-year master supply agreement contract extension with major coal-fired utility located in Oklahoma

CO2 GRO Inc (CVE:GROW) (OTCQB:BLONF) (FRA:4021) welcomes sale of its technology to Canadian cannabis licensed producer

Neo Lithium Corp (CVE:NLC) (OTCQX:NTTHF) (FRA:NE2) closes its C$2.6M equity financing with Chinese investor CATL

GlobeX Data Ltd (OTCQB:SWISF) (CSE:SWIS) receives new order for its Sekur system from biotechnology firm Hemostemix

Recruiter.com Inc (OTCQB:RCRT) partners with QuickFee to bring flexible online payment solutions to more than 800,000 recruiting and HR professionals

PharmaDrug Inc (CSE:BUZZ) (OTCPINK:LMLLF) teams up with leading DMT researcher Jimo Borjigin at the University of Michigan in new study collaboration

First Cobalt Corp (CVE:FCC) (OTCQX:FTSSF) (FRA:18P) receives C$1.92M in cash after warrant expiry exercise; names Cora Klein as head of investor relations

KWESST Micro Systems Inc (CVE:KWE) (OTCQB:KWEMF) successfully achieves important milestone with TASCS system under contract for key military customer

Victory Square Technologies Inc (CSE:VST) (OTCMKTS:VSQTF) (FRA:6F6) completes sale of VPN platform

Psyched Wellness  Ltd (CSE:PSYC) (OTCQB:PSYCF) (FRA:5U9) appoints financial services veteran Janeen Stodulski to its board of directors

Japan Gold Corp (CVE:JG) (OTCQB:JGLDF) (FRA:2LD) says scout drill results from Ohra-Takamine project underscore potential

Great Bear Resources Ltd (CVE:GBR) (OTCQX:GTBAF) (FRA:0G6A) adds another batch of high-grade gold results from LP Fault zone on Dixie project

Fury Gold Mines Limited (TSE:FURY) (NYSEAMERICAN:FURY) (FRA:AUN1) unveils changes in the boardroom as it positions for “next phase of growth”

Lexaria Bioscience Corp (NASDAQ:LEXX) (CSE:LXX) (OTCMKTS:LXR) reports progress in two antiviral drug studies in its 2021 applied R&D program

Heritage Cannabis Holdings Corp (CSE:CANN) (OTCQX:HERTF) (FRA:2UE) achieves its first C$1M revenue week in March on strong demand for its brands

Empress Royalty Corp (CVE:EMPR) inks deal for “bought deal” offering of units for gross proceeds of C$12,000,000

Idaho Champion Gold Mines Canada Inc (CSE:ITKO) (OTCQB:GLDRF) (FRA:1QB1) continues to see good grades near surface and depth at Baner project

ElectraMeccanica Vehicles Corp (NASDAQ:SOLO) selects Phoenix suburb of Mesa for its US-based assembly facility and engineering technical center

CytoDyn Inc (OTCQB:CYDY) appoints new chief operating officer

Renforth Resources Inc (CSE:RFR) (OTCQB:RFHRF) (FRA:9RR) says its shares now listed on US OTCQB Venture Market; gives operations update

Metalla Royalty & Streaming  Ltd (NYSEAMERICAN:MTA) (CVE:MTA) (FRA:X9C) picks up royalty on large gold development project in Brazil for up to US$18M

9.40am: Wall Street mixed at start

The main indices on Wall Street have moved in different directions on Tuesday morning as traders seemed unsure of which way to turn.

Shortly after the opening bell, the Dow Jones Industrial Average was down 0.13% at 32,915. The other indices were positive, with the S&P 500 climbing 0.12% to 3,973 while the Nasdaq rose 0.65% to 13,546.

Markets seem to be waiting for more clarity on the direction the economy could take, with many likely to hold fire until after the Federal Reserve meets on Wednesday.

New US industrial production data may also have thrown a spanner in the works, showing a 2.2% drop in February as severe winter weather dented factory output.

7:50am: Wall Street set for mixed start

After hitting new highs yesterday, US markets are set for an indecisive opening today.

The Dow Jones Industrial Average is expected to slide 19 points to 32,934 while the S&P 500 is tipped to open one point higher at 3,970.

The Nasdaq 100, which was fell back yesterday, is again expected to be out of step, opening 58 points higher at 13,140.

“The intense focus on US treasury yields is easing, aided by a shift lower in the benchmark 10-year bond yield to 1.60% ahead of the Fed’s rate decision tomorrow,” said OANDA’s Sophie Griffiths.

“No change in policy is expected. Both the GDP and inflation forecast are expected to be upgraded and accompanied by a statement from the Fed saying they will remain accommodative. A win-win for the markets, surely? Only if they believe the Fed.

“US futures are easing back off the record highs reached in the previous session. Attention will now turn to US retail sales, which are expected to ease slightly -0.5% MoM [month-on-month] in February after January’s outsized gain of 5.3%,” she added.

Four things to watch for on Tuesday:

• Firms in the earnings diary for Tuesday include cybersecurity group Crowdstrike Holdings Inc (NASDAQ:CRWD), insurance firm Lennar Corp (NYSE:LEN) and software specialist Smartsheet Inc (NYSE:SMAR)
• Meanwhile, shares in Reddit favourite AMC Entertainment Holdings Inc (NYSE:AMC) could also draw attention after the firm reopened its theatres in Los Angeles and saw its shares boosted on Monday after a key investor reduced its stake
• Shares in Coca-Cola Co (NYSE:KO) could also get a look in after the firm was initiated with a ‘buy’ rating and US$65 target price by analysts at broker Redburn
• On the macro front, US retail sales for February will be the key focus, while investors may also take interest in industrial and manufacturing production figures as well as the NAHB housing market index for March

Story by ProactiveInvestors