STORY: U.S. stocks finished mixed Wednesday with analysts citing profit taking as a reason for the decline of the S&P 500 and the Nasdaq after a months-long megacaps stocks run.
The Dow rose three-tenths of one percent while the S&P 500 dropped four tenths and the Nasdaq fell one-point-three percent.
The focus is now on inflation data out next week along with a decision on interest rates from the Federal Reserve. Financial markets see a 70-percent chance the Fed leaves rates unchanged which is what Summit Place Advisors Founder and President Liz Miller is expecting.
“We had 330,000 new jobs in that recent payroll report. You know, a year ago, we'd be excited with 150 a 180,000, so there's no question we still have this extremely strong labor environment and the Fed is definitely struggling with that alongside its inflation fighting efforts. So if they wanted to find data to support another rate increase, they easily could find it. But I think Chairman Powell has really communicated. It's likely they're going to take a pass this month. They're going to pause. Investors have been pushing for that for months now and really will come back in July. I think they may pause and make it clear In the statement that this doesn't mean that they are sure they're done raising rates, but they have enough movement, they're going to wait for some more data and revisit things in July.”
Stocks on the move Wednesday included Campbell soup which fell nine percent after the packaged food maker posted a lower fiscal third-quarter gross margin, dented by high commodity and freight costs.
And Coinbase added three percent a day after shares hit a seven-month low. The company's CEO reassured investors that their funds were safe and blasted the U.S. Securities and Exchange Commission over its lawsuit against the company.