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Federal Reserve cuts, risks to dual mandate in balance (0:50), Wendy’s getting help from Palantir’s AI (2:40), and Japan hits highest levels in weeks (3:35).
Transcript
U.S. stocks finished higher Thursday after the Federal Reserve cut its key interest rate, extending record highs logged after the Republican Party won back the White House and the U.S. Senate.
Earlier in the day, we saw that initial jobless claims rose slightly less than expected in the past week.
Nonfarm productivity also rose less than expected, while labor costs climbed more in Q3.
As widely expected, the Federal Open Market Committee cut its policy rate by 25 basis points to 4.50–4.75% on Thursday, its second rate cut in a row.
With inflation still elevated, heading toward the Federal Reserve’s 2% goal and the labor market easing from tight conditions a year ago, “The Committee is attentive to the risks to both sides of its dual mandate,” the FOMC said in its statement. Risks to achieving its employment and inflation goals are roughly in balance, it said.
Seeking Alpha Investing Group Leader of The Winter Warrior Investor, David Alton Clark said: “I see the Fed staying the course and cutting another 25 basis points in December and then pausing as we enter 2025”
The FOMC will continue to reduce its holdings of Treasury securities, agency debt, and agency mortgage-backed securities, it said. That means that tightening through its balance sheet actions is partly offsetting the lower interest rate.
Notable Thursday movers include Lyft (LYFT). Shares surged over 20% after beating expectations and raising its full-year guidance, driven by a record number of active riders and a 16% increase in gross bookings.
Warner Bros. Discovery (WBD) stock surged over 16% after the media giant reported an unexpected profit in the third quarter, despite missing revenue expectations.
Semiconductor stocks were mostly higher on Thursday amid a slew of earnings in the sector, led in part by industry stalwart Qualcomm (QCOM).
Meanwhile, Arm Holdings (ARM) shares declined by 6% after releasing mixed guidance for FQ3 and keeping its fiscal 2025 outlook unchanged, despite exceeding expectations in FQ2. And Halliburton (HAL) shares declined over 5% after the company reported Q3 results below expectations.
With the help of Palantir Technologies (PLTR), Wendy’s (WEN) is using artificial intelligence to make sure it never runs out of its signature Frosty milkshake.
By using the Palantir AI Platform, customers can improve the scale and speed of inventory management by connecting disparate data sources into a single common operating picture.
The Palantir Artificial Intelligence Platform was put to the test this summer when Wendy’s (WEN) cut the price of its signature Frosty to just $1. While the company did not provide data on how many were sold during the promotion, there were no limits on the number of Frosty’s customers could order.
During the company’s Q3 earnings call, CEO Kirk Tanner praised AI’s capability to increase labor efficiency and enhance margins.
U.S. stock futures moved higher on Friday: Dow +0.06%; S&P 500 +0.06%; Nasdaq +0.05%. Asian markets are mixed, while Japan’s leading economic indicators index increased to 109.4 in September 2024 from 106.9 in the previous month.
China (SHCOMP) -0.19% reversing gains from earlier in the session as investors cautiously awaited announcements of additional stimulus from Beijing. Hong Kong (HSI) -0.74% after seeing a rally in stocks, bonds, and commodities in the US overnight after the Fed’s expected rate cut.
India (SENSEX) -0.03% extending losses from the previous session amid declines in the oil & gas, realty, auto, and banking sectors.
Australia (AS51) +0.92% reaching an over two-week high after the US Fed decision.
