The stock market closed lower on Thursday after another higher-than-expected inflation data. Producer Price Index for February rose 0.6% versus the 0.3% estimate. This hot inflation number sent bond yields higher, with the benchmark 10-year Treasury yield increasing to 4.29%.
Overall, S&P 500 and NASDAQ declined 0.3% to 5,150 and 16,129, respectively.
Tweet of the Day
Institutional selling usually happens on the way up and over time. Four of the last eight sessions have seen distribution on the Nasdaq composite (Big drops on increasing volume). This has coincided with tepid net highs (green bars below chart), stalling action in leaders, and… pic.twitter.com/C5MzAfEE4j
— Matt Caruso, CFA, CMT (@Trader_mcaruso) March 10, 2024
Chart of the Day
Here is the one-year chart of Datadog (DDOG) as of February 20, 2024, when the stock was at $128.
Datadog’s management was cautious in hiring and spending on Operating Expenses in 2023, which helped profits as business was slow. Now, in 2024, spending will resume. The net result is 2024 profit estimates declining from $1.78 to $1.45 this quarter. Still, investors did not mind as the stock has been resilient since the news hit.
Datadog had a strong bookings quarter, with its Enterprise team delivering a record in annualized bookings and the go-to-market teams executing the largest annualized bookings since 2022 Q1.
DDOG is part of our Growth Portfolio. This is one of the top software stocks around, and the stock may have just turned up after a two year correction.
