Consumer companies fell sharply after Federal Reserve Chairman Jerome Powell used an appearance on "60 Minutes" to quell speculation that a rate cut was imminent.
"It seems to me that Powell and friends are saying the same thing: they're going to be very measured, they're not going to rush, they're going to be data dependent, and they're trying any way they can to convey that they are not in a rush," said J.D. Joyce, president of Houston financial advisory Joyce Wealth Management.
"It's not the Fed that has changed the outlook for the pause or the cut, it's been the Street that's gotten ahead of itself."
The Institute for Supply Management's services-activity index rose to 53.4 in January from 50.5 in December.
Estee Lauder rallied after the cosmetics giant posted fourth-quarter earnings ahead of Wall Street targets, and divulged plans to lay off 3% to 5% of the staff.
Gap named fashion designer Zac Posen as the creative director of the company overall, and chief creative officer of the Old Navy brand.
Fast-food chain McDonald's said price increases and menu promotions helped boost U.S. sales in the latest quarter, even as conflict weighed on international sales.
Shares of meat processor Tyson Foods rallied, after its quarterly earnings topped Wall Street estimates.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
02-05-24 1826ET
