Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average remains more than 1,900 points below its all-time high set on Jan. 26.
- Facebook Inc. (FB) - Get Report shares turned slightly higher Wednesday after falling sharply over the past two sessions.
- Tesla (TSLA) - Get Report shares jumped nearly 2% on Wednesday after the company approved CEO Elon Musk's pay package.
Wall Street Overview
Stocks lost steam on Wednesday, March 21, after the Federal Reserve announced it would be raising interest rates.
The Fed increased borrowing costs for the sixth time since late 2015 in a bid to keep inflation from rising too fast as the economy accelerates.
The U.S. central bank's monetary-policy committee raised the benchmark rate by a quarter point to a range of 1.5% to 1.75%, according to a statement released after a two-day meeting. The Fed had held the rate close to zero from 2008 through 2015 in a bid to revive the economy and markets following the financial crisis.
The Dow Jones Industrial Average closed down 45 points, or 0.18%. The S&P 500 also slipped 18% and the Nasdaq was down 0.26%.
Stocks rebounded on Tuesday, March 20, despite sharp losses for Facebook and Oracle Corp. (ORCL) - Get Report . The Dow rose 116 points, or 0.47%, to 24,727. The S&P 500 gained 0.15% and the Nasdaq was up 0.27%.
Facebook was being watched again Wednesday as investors continue to assess the fallout from the data scandal that has lopped more than 9% from Facebook's share price over the past two sessions and reduced the social media giant's market value by $60 billion. The stock rose for the first time in three days on Wednesday, gaining less than 1%.
TheStreet Podcast | Facebook: How to Protect Your Data
Salesforce agreed to pay $44.89 a share in cash and stock for MuleSoft, which went public at $17 a share.
MuleSoft, which specializes in application programming interfaces, rose 5.5% on Wednesday.
Adjusted earnings in the quarter were $3.72 a share, above analysts' forecasts of $3.11 a share. Revenue in the period rose to $16.5 billion from $15 billion a year earlier; analysts had called for revenue of $16.2 billion.
The quarter included benefits of $5.60 a share from changes to U.S. tax laws.
Adjusted profit in the quarter was 79 cents a share, 1 cent above estimates. Revenue of $3.88 billion rose 2% and slightly beat estimates.
"Our third-quarter operating profit fell well short of our expectations, and cost pressures are impacting our full-year outlook," the CEO said. "Like the broader industry, we're seeing sharp increases in input costs, including inflation in freight and commodities. Because of our improved volume performance, we're also incurring higher operational costs."
A special committee of Nordstrom Inc.'s (JWN) - Get Report board ended its discussions with members of the Nordstrom family regarding a possible buyout deal, citing a failure to reach an agreement over price.
Nordstrom shares fell 3.3%.
In U.S. economic news, existing home sales in February rose 3%, ending a two-month losing streak.
Oil prices rose more than 2.3% to $65.03 a barrel after U.S. crude oil inventories fell 2.6 million barrels last week, according to the Energy Information Administration.