Markets Flatten on Waning Rate Cut Exuberance

Market Performance - Market indexes were mostly flat, with the Dow down by 0.07%, S&P 500 up by 0.11%, and Nasdaq up by 0.22% [1] - The small-cap Russell 2000 outperformed, gaining 0.76% after bouncing off late Tuesday lows [1] Interest Rate Expectations - Anticipation of an interest rate cut next week, expected to lower rates to between 3.50-3.75%, the first time since September 2022 [2] - Weekly Jobless Claims data was better than expected, but did not deter investor sentiment regarding the Fed's upcoming decision [2] Earnings Reports - Ulta Beauty (ULTA): Reported earnings of $5.14 per share, exceeding the $4.56 consensus, with revenues of $2.9 billion surpassing the $2.72 billion expectation, reflecting a year-over-year growth of 12.9% [3] - DocuSign (DOCU): Earnings of $1.01 per share exceeded the expected $0.92, with revenues of $818.4 million above the $806.1 million consensus; however, stock declined due to competition from OpenAI's DocuGPT [4] - Hewlett Packard Enterprises (HPE): Reported earnings of 62 cents per share, beating estimates by 3 cents, but revenues of $9.7 billion fell short of the $9.96 billion expectation, leading to a 7.6% drop in shares [5] Economic Indicators - The delayed Personal Consumption Expenditures (PCE) report for September is expected to show a year-over-year increase of 2.8%, up from 2.74% the previous month, with core PCE anticipated at 2.9% [6] - A significant upside surprise in PCE data could influence the Fed's decision on interest rates [7]