Nasdaq, S&P 500 Shrug Off Hawkish Fed Talk As Earnings Season Reaches Its Peak

Nasdaq and S&P 500 were moving higher Wednesday morning despite hawkish comments from St. Louis Federal Reserve President James Bullard Tuesday evening. If the markets do close higher today, it would snap a two-day losing streak to start the week. 

Fed Talk: Bullard said that the central bank will continue to raise rates until it has confirmation and compelling evidence that inflation is falling. But, on the bright side, he also said that he does not believe we are in a recession right now, and expects to see growth in the second half of the year. 

Mortgage applications rose last week for the first time in five weeks, a sign that consumers are still buying houses despite recession fears. The 30-year fixed mortgage rate also had its biggest weekly drop since 2020. 

Earnings Season Continues: PayPal Holdings PYPL reported earnings Tuesday evening, beating EPS and revenue expectations. Shares rose sharply after hours, going from around $90 a share to $101. Elliott Management, an activist investment firm, announced it has about $2 billion invested in the company. 

Robinhood Markets Inc HOOD reported on Tuesday as well, missing on revenue but slightly beating expectations on EPS. More importantly, the company announced it will lay off around 23% of its staff. This comes after a 9% workforce cut a few months ago. Some analysts see this as a bullish sign, that it will help improve profitability. Others worry it could signal a death spiral.

Photo: Courtesy of RosieTulips on flickr