Market News
Dow Jones Today: Stocks Continue to Rise, and Government Bond Yields Fall as Optimism Persists About Interest Rates
By: Colin Lidley
Colin is a co-editor specializing in technology news and financial news. He has over three years of experience in editing, reviewing, and fact-checking current events in finance and politics. He holds a master’s degree in journalism from The New School and a bachelor’s degree in history and political science from McGill University.
Stock Analysis
Stocks continued their upward trajectory at the year’s end, and government bond yields fell on Tuesday amid confidence that the Federal Reserve will follow through on an expected interest rate cut next year.
The Dow Jones Industrial Average traded about 0.5% higher on Tuesday morning, while the S&P 500 rose by 0.4% and the Nasdaq 100 increased by 0.3%.
Richmond Fed President Thomas Barkin stated in an interview with Yahoo Finance that he sees inflation as “a bit more stubborn” than the average Fed official, but the central bank will lower interest rates next year if inflation continues to fall steadily and consistently.
Atlanta Fed President Raphael Bostic is also scheduled to speak this morning. Neither of them is a voting member of the Federal Open Market Committee (FOMC) this year, but investors will nonetheless be listening to their forecasts regarding the economy’s health and future rate cuts.
Global News
The Bank of Japan left its policy interest rate unchanged at -0.1%. It also maintained its yield curve control policies, citing economic uncertainty. The yen fell more than 1% against the dollar, while yields on Japanese, U.S., and European bonds declined.
Tesla’s shares rose moderately in early trading after the electric vehicle maker announced it would grant hourly workers at its Nevada battery plant a 10% pay raise in an effort to stave off union-led organizing efforts.
Stocks rose yesterday, with the Nasdaq 100 closing at a record level, despite rising oil prices due to shipping disruptions in the Red Sea.
Tesla Settlement Agrees to Pay $700 Million in Play Store Lawsuit Settlement
Alphabet’s Google (GOOGL) has agreed to pay $700 million to consumers and states, and make changes to allow for more competition in its Play Store, according to the terms of a settlement of an antitrust case unveiled on Monday.
Of the $700 million total, $630 million will go to a consumer settlement fund and $70 million to a state fund, according to the settlement, which is still awaiting court approval.
Google’s VP of Government Affairs and Public Policy Wilson White also mentioned some changes to the company’s app store in a blog post. Among these changes will be “user choice billing,” where developers can now present different pricing options within their apps. The company is also looking to streamline “sideloading,” which is installing apps outside the Play Store.
Shares of Google’s parent company rose 0.4% to $136 per share on Tuesday morning, and they have increased by more than 53% in 2023 so far.
Kenvue Shares Rise After Winning Tylenol Case
Kenvue (KVUE), Johnson & Johnson’s (JNJ) healthcare products unit, saw its shares rise 5% on Tuesday morning after a U.S. federal judge in the Southern District of New York granted it an upper hand in its battle against a product liability lawsuit.
The U.S. federal court judge in the Southern District of New York ruled to exclude expert opinions presented by plaintiffs claiming that in-utero exposure to acetaminophen could lead to the development of autism spectrum disorder and attention deficit hyperactivity disorder.
Described
Analysts at JP Morgan described the ruling as a “complete victory” for Kenvue, adding that the ruling “effectively ends the plaintiffs’ case in the multidistrict litigation.”
With Tuesday’s gains, Kenvue’s shares rose to a three-month high of over $22, but they are still down more than 15% from their start in May.
Biggest Stock Moves Before Market Open
Gainers:
- Kenvue Inc. (KVUE): Shares of Johnson & Johnson’s (JNJ) new healthcare unit rose over 5% after a federal judge ruled to exclude expert opinions supporting plaintiffs’ claims of a link between in-womb exposure to acetaminophen and autism spectrum disorder.
- Enphase Energy Inc. (ENPH): Shares of the green technology company rose over 2% after it announced it would reduce its workforce by 10% in a global restructuring.
- Alphabet Inc. (GOOGL): Shares of the tech giant rose about 0.5% after it agreed to pay $700 million and allow for more competition in the Google Play app store to settle an antitrust suit.
Losers:
- Accenture Plc (ACN): Shares of the consultancy fell 3% after revenue guidance for the current quarter came in below analysts’ expectations.
- Permian Resources Corp. (PR): Shares of the oil exploration and production company fell more than 2% after announcing that shareholders were selling over 39 million shares in a secondary public offering.
Stock Futures Before Federal Reserve Speakers
Futures tied to the Dow Jones Industrial Average rose 0.2% in pre-market trading.
S&P 500 futures also increased by 0.2%.
Nasdaq 100 futures added less than 0.2% after the index reached a record number the previous day.
Sources of the Article
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reports, and interviews with industry experts. We also reference original research from other reputable publishers when appropriate. You can learn more about the standards we follow in producing accurate and unbiased content in our editorial policy.
Google. “Confirmation of choice and openness in the Android operating system and Google Play Store.”
U.S. District Court for the Northern District of California, San Francisco. “In the Google Play Store antitrust case.”
Account Comparison
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Michael Nagel / Bloomberg via Getty Images
Source Article
Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reports, and interviews with industry experts. We also reference original research from other reputable publishers when appropriate. You can learn more about the standards we follow in producing accurate and unbiased content in our editorial policy.
Google. “Confirmation of choice and openness in the Android operating system and Google Play Store.”
U.S. District Court for the Northern District of California, San Francisco. “In the Google Play Store antitrust case.”
Account Comparison
Operator Disclosure
The offers displayed in this table are from partnerships from which Investopedia receives compensation. This compensation may impact how and where listings appear. Investopedia does not include all offers available in the marketplace.
Service Provider
Name
Description
Michael Nagel / Bloomberg via Getty Images
Source: https://www.investopedia.com/dow-jones-today-12192023-8417853
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