The Press Stories
Stock Market Closes Mixed as Indexes Remain Stagnant
In an uneventful day of trading, the stock market closed with mixed results on Friday. Major indexes showed little movement in the final hour, leaving investors with limited gains. The Dow Jones Industrial Average closed slightly negative, weighed down by a significant decline in Nike’s stock. The athletic apparel company saw a sharp decline of 11.8% after releasing mixed fiscal second-quarter earnings.
The Nasdaq managed to trim some gains to close up 0.2%, while the S&P 500 ended the day 0.2% higher. The standout performer of the day was the small-cap Russell 2000, which climbed 0.8% and led the market. Despite its stagnant nature, the Nasdaq posted a 1.2% gain for the week, with the S&P 500 rising 0.8%. The Dow managed to squeeze out a minimal 0.2% weekly surplus.
In other news, the Commerce Department released its November personal income and spending report. The report revealed that the personal consumption expenditures (PCE) price index rose 2.6% year-over-year, meeting expectations. However, core PCE rose only 3.2%, falling slightly short of the estimated 3.4%.
The biotech sector saw some significant movement, with Karuna Therapeutics surging a remarkable 47.7%. The surge was a response to news that Bristol Myers Squibb intends to purchase the company for approximately $14 billion. Other biotech stocks, such as Intra-Cellular Therapies and Neurocrine Biosciences, also saw gains as investors showed optimism for the sector.
The Chinese online gaming industry, however, faced a setback as NetEase and Tencent plummeted. This decline came in response to China proposing new regulations to limit both time and money spent on online gaming.
Meanwhile, aerospace and industrial engineering software stock Ansys experienced a significant increase, gapping up 18.1% due to rumors of a potential takeover. Altair Engineering also surged 11.5% after receiving an overweight rating and a $86 price target from JPMorgan.
Overall, the stock market had a muted response to the inflation report. The bond market remained steady, with the 10-year Treasury yield holding at around 3.9%. These stable conditions reflect a cautious market sentiment on the eve of the holiday season. Investors are likely keeping a close eye on upcoming market events as they await further developments in the new year.
