Investing.com -- The Dow closed higher Wednesday, as investors bought the dip in stocks, with tech leading the way following a sell-off a day earlier following stronger-than-anticipated U.S. inflation reading.
By 16:00 ET (21:00 GMT), the blue-chip Dow Jones Industrial Average gained 0.4%, or 151 points, while the benchmark S&P 500 rose 0.9%, the tech-heavy Nasdaq Composite roe 1.3%
Uber in 52-week high after unveiling $7B buyback; Lyft shines on earnings stage after wild swings following forecasting error
Uber Technologies Inc (NYSE:UBER) rose 14% to a fresh 52-week high after the ride0hailing company unveiled a $7 billion stock buyback program and rolled out an upbeat gross bookings growth upbeat, expecting mid to high-teens over the next three years.
LYFT Inc (NASDAQ:LYFT) jumped 35% after reporting better-than-expected guidance and quarterly results as a jump in gross bookings and cost cuts boosted the bottom line. The results drew upgrades from Wall Street, with Wedbush saying it was "encouraged by the improving intermediate-term growth trajectory of the business," and raised its price target on the stock to $15 from $14.
Lyft had been 60% higher in afterhours trading Tuesday, but pared some of those gains after the company incorrectly forecasted 500 basis points, or 5%, of adjusted EBITDA margin expansion for 2024, which was later corrected to 50 basis points.
Fed speakers say inflation fight remains on track
Federal Reserve Vice Chair Michael Barr said the Fed was "confident" inflation is slowing toward the 2% target, though cautious that the path will likely be "bumpy."
Federal Reserve Bank of Chicago President Austan Goolsbee said Wednesday that upside surprises in inflation doesn't mean that the Fed isn't on target to get inflation and rate cuts could get underway even if inflation is slightly higher.
The remarks come just a day after data on Tuesday showed inflation slowed less than expected, denting investor hopes for an earlier rate cut.
Airbnb slips after flagging moderating growth; Kraft Heinz slumps as Q4 sales falls short; Robinhood rallies
Airbnb fell more than 1% after the travel accommodation app flagged slowing booking rates in its current quarter, owing to tougher comps. The tough year-on-year comparison would impact the growth rate of nights booked in its first quarter compared to its prior three-month period, the company said.
Kraft Heinz Co (NASDAQ:KHC) has posted fourth-quarter net sales that missed expectations, as the packaged food group faced headwinds from recent price hikes that have dented demand. Shares in the Kool-Aid and Miracle Whip owner fell more than 5%.
Robinhood Markets (NASDAQ:HOOD) platform rose 13% after the trading platform reported guidance that topped estimate following better-than-expected quarterly results, driven by higher crypto and options trading.
JMP Securities highlighted Robinhood's "strong underlying momentum coupled with the disciplined expense," as it upgraded its price target on the stock to $25 from $23. The company is "incredibly well funded with no debt ... we think the stock remains notably cheap with a current enterprise value of just $5.5B," it added.
Scott Kanowsky, Oliver Gray contributed to this report.