Market Update: Dow Jones and S&P Face Challenges in Pursuit of Gains

Title: Stock Market Streak Ends as Inflation Data Dampens Investor Sentiment

Major stock indexes faced a setback as they failed to sustain their winning streaks for the fifth consecutive week. The Dow Jones Industrial Average and S&P 500 both experienced declines of nearly 0.4% and 0.5% respectively, with the S&P managing to hold slightly above the 5,000 level. Meanwhile, the Nasdaq plummeted by 0.8%, while the small-cap Russell 2000 suffered the steepest decline with a drop of nearly 1.4%.

The release of higher-than-expected inflation data contributed to the market woes. As a result, the 10-year Treasury yield increased by 4 basis points, hovering just below 4.3%.

In company news, Dropbox shares took a substantial hit, plunging by 22.9% after revealing a slowdown in fourth-quarter profit and sales growth and presenting a disappointing 2024 revenue outlook. Conversely, Coinbase Global shares experienced an 8.8% surge following a better-than-expected fourth-quarter profit and positive sales projections.

Super Micro Computer shares tumbled by 20% after reaching an all-time high, leading several investors to consider put options as a hedge. On the other hand, Trade Desk shares rose by nearly 17.5% after reporting fourth-quarter adjusted earnings and revenue in line with expectations.

DoorDash shares, unfortunately, plummeted by 8.1% after revealing a larger-than-predicted fourth-quarter loss. Similarly, Roku shares dropped by 23.8% despite reporting higher sales, as the company experienced a fourth-quarter loss and declining per-person revenue.

Applied Materials shares, however, fared better, rising by almost 6.4% after beating fiscal first-quarter adjusted earnings and sales projections. DraftKings managed to reverse its losses and closed slightly higher after announcing better-than-expected fourth-quarter earnings.

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Nike stock faced a setback, falling by 2.4% after the company announced job cuts and received a downgrade from Oppenheimer.

Investors should note that the stock market will be closed on Monday, Feb. 19, in observance of Presidents Day. For more stock market news, readers can follow Kimberley Koenig on Twitter.

In conclusion, the recent higher-than-anticipated inflation numbers weighed heavily on the stock market, ending its five-week winning streak. Investors reacted by moving away from certain stocks, resulting in declines for major indexes. However, some companies, such as Coinbase Global and Applied Materials, managed to exceed expectations and saw positive gains in their stock prices.


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