SARASOTA, Fla. (WWSB) – The stock market showed mixed results this week following the Federal Reserve’s quarter-point interest rate cut and earnings reports from major corporations.
The Dow Jones Industrial Average led weekly gains, rising 1.5% for the week. The S&P 500 posted modest gains of around 0.5%, while the NASDAQ remained flat.
The Federal Reserve cut rates by a quarter point on Wednesday, meeting market expectations. Fed officials signaled a more cautious approach for 2026, indicating they will closely monitor economic data before making additional rate cuts.
“The big news from the Fed really was, hey, 2026, we’re going to wait and really look at the data,” said ABC7 business commentator Jeffrey Stern. “We’re not quite sure if we’re going to lower them too quickly or not.”
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On Oracle and Broadcom, reported earnings fell short of investor expectations, weighing on overall market performance. The 10-year Treasury yield held steady around 4.19%.
Current trading showed declines across major indices. The Dow fell 293 points to 48,410. The S&P 500 dropped 90 points to 6,811, and the NASDAQ led losses with a decline of 453 points to 23,140.
Costco topped sales and revenue expectations, with sales increasing 8.2%. The retailer’s digital sales surged 20%, while mobile app usage jumped 48%.
The company reported revenue of $67.3 billion and earnings per share of $4.05. Costco operates 921 stores with 81.4 million paid members holding 145 million membership cards. The company maintains a renewal rate above 92%.
Lululemon reported revenue of $2.57 billion with net income of $3.07 billion, or $2.59 per share. After cutting revenue guidance in the previous two quarters, the athletic apparel company raised its outlook this quarter.
The company announced its CEO will step down at the end of January. Lululemon stock rose 10% on the news, though shares remain down approximately 45% for the year.
The company faces competition from brands including Alo and Vuori.
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