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Stock Market Today: Dow ends lower as Fed minutes point to higher for longer rates

Published 21/11/2023, 02:50
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Investing.com -- The Dow closed lower Tuesday, as the minutes from the Federal Reserve most recent meeting showed members backed higher for longer interest rates for some time. 

By 16:00 ET (21:00 GMT), the Dow Jones Industrial Average fell 62 points, or 0.2%, S&P 500 fell 0.2% and the NASDAQ Composite fell 0.6%.

Fed minutes draw muted reaction 

Fed members supported keeping rates at restrictive levels for some time, leaning into their careful approach on monetary policy until clear signs that inflation is clearly on a downward trend, the minutes from the Fed's Oct. 31- Nov. 1 meeting showed.

While the minutes indicated that members are leaning more toward keeping rates steady rather than hiking, there weren't any clues that sooner rather than later rate cuts are on the horizon. 

Traders continue to expect a the Fed to deliver a first cut at the the Apr. 30-May 1 meeting, according to Investing.com's Fed Rate Monitor Tool. 

Ford curbs plans for Michigan EV battery plant

Ford Motor Company (NYSE:F) fell more than 1% after the automaker detailed plans to reduce its investment in its battery plant in Michigan amid waning EV demand. 

The company said it would cut production at the plant by 43% and decreased the number of jobs the plant was expected to create by 32% to 1,700.    

Zoom Video Communications delivers beat and raise in Q3, but macro headwinds remain a worry

Zoom Video Communications (NASDAQ:ZM) closed flat after lifting its full-year guidance after reporting Q3 results that topped analyst estimates, though some on Wall Street flagged ongoing macroeconomic headwinds as a concern. 

The better-than-expected 3Q revenue was driven by "steady Enterprise segment execution against low expectations," Goldman Sachs said, adding that the stock reaction indices that "investors are contemplating a still weak growth backdrop."

Nvidia’s earnings in focus

The earnings season has generally produced better than expected results, and this positive tone is likely to be boosted by earnings from artificial intelligence chip leader Nvidia (NASDAQ:NVDA), with expectation of another blockbuster revenue forecast.

Shares of Nvidia's Asian suppliers largely rose on Tuesday as investors expressed confidence in the world’s most valuable chipmaker, looking for more cues on AI-led demand, especially in China.

Retailers slip on consumer worries  

Lowe’s (NYSE:LOW), Kohl’s Corp (NYSE:KSS) and Best Buy (NYSE:BBY) all traded lower as the retailers warned about the likelihood of a slowdown in discretionary spending heading into the important holiday period.

Abercrombie & Fitch (NYSE:ANF) jumped 2% after the fashion retailer lifting its annual guidance, saying it has "confidence" heading into the all-important holiday shopping season. 

Oil hands back some recent gains

Oil prices fell Tuesday, handing back some of the recent gains as traders become cautious ahead of the weekend’s OPEC+ meeting. 

Weekly U.S. inventory reports from the American Petroleum Institute and the Energy Information Administration are due later on Tuesday and Wednesday, respectively.

(Peter Nurse and Oliver Gray contributed to this item.)

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