US stocks rise as traders digest economic data, await Fed minutes

U.S. stock indexes rose on Wednesday as investors digested a slew of economic data and awaited the final minutes of the Federal Open Market Committee meeting.

How are stock indices traded?
  • Dow Jones Industrial Average DJIA,
    +0.50%
    It increased by 136 points or 0.4% to 34,233

  • S&P 500 SPX,
    +0.51%
    It increased by 18 points or 0.5% to 4,022

  • Nasdaq Composite COMP,
    -0.54%
    It rose 83 points, or 0.7%, to 11,260

Stocks ended higher on Tuesday, with the S&P 500 up 53.64 points, or 1.4%, to 4,003.58 and the Dow industrials up 397.82 points, or 1.2%, to 34,098.10. The Nasdaq Composite rose 149.89 points, or 1.4%, to close at 11,174.40.

What drives the markets?

Stocks rose on Wednesday, trying to follow up on Tuesday’s gains, driven in part by continued hopes that the Federal Reserve will slow the pace at which it raises interest rates.

Minutes of the November 2:00 PM Eastern meeting will be closely watched for clues on how high the federal funds rate should go and how long it will stay there to keep inflation under control. At its last meeting, the Fed increased the discount rate by 0.75 percentage points to the range of 3.75-4 percent.

“Investors may be premature or have more support for such a slowdown in tightening and less support for a higher terminal rate than they previously thought,” said Craig Erlam, chief market analyst at OANDA. , in a note to customers.

Read: This is not a “close your eyes and buy something” market

U.S. durable goods orders rose 1% in October, while jobless claims rose 17,000 to 240,000 in the latest week, the highest level since August, according to U.S. economic data. Meanwhile, the S&P Global flash US services purchasing managers’ index fell to 46.1 from 47.8 in November. The S&P Global flash US manufacturing purchasing managers’ index fell to 47.6 from 50.7 in November. Any number below 50 represents a contract economy.

The latest November University of Michigan consumer sentiment index fell to 56.8 in November and remained depressed, reflecting concerns about high inflation and the growing likelihood of a recession.

U.S. new home sales rose 7.5% to a seasonally adjusted annual rate of 632,000 in October from a revised 588,000 in the previous month, the U.S. Commerce Department reported on Wednesday.

US stock markets will be closed for Thanksgiving on Thursday, November 24, and will reopen the next day only for a shortened session on Black Friday, the end-of-the-year shopping event, with trading ending on the Eastern Side on November 13. 25.

Bond yields remained flat, with the 10-year Treasury note TMUBMUSD10Y,
3.715%
Trading around 3.711% and 2-year TMUBMUSD02Y,
4.492%
At 4,492%.

The spread between 2- and 10-year Treasury yields ended Tuesday’s session at minus 76 basis points, the most inverted since Oct. 5, 1981, which some said signaled an imminent recession.

Elsewhere, oil prices CL.1,
-4.06%
was modestly lower, while natural gas futures NG00,
+5.63%
European natural gas futures also rose 8% to $7,982 per million British thermal units after Russian energy giant Gazprom threatened to cut off supplies to Europe via a Ukrainian pipeline. Markets are also awaiting news of an agreement between the US and its allies on a price ceiling for Russian oil.

Companies in focus
  • Manchester United‘s MANU,
    +17.17%
    Shares rose 14% on Wednesday after the club’s owners confirmed they were exploring a potential financial investment or sale of the top-flight Premier League club.
  • HP Inc.
    HPQ,
    +0.85%
    Shares fell 0.9% on Wednesday after the company’s executives announced plans to cut 10% of their workforce in the coming years while issuing weaker-than-expected earnings guidance.
  • Credit Suisse
    CSGN,
    -5.45%
    Shares fell 5.5% on Wednesday after the bank’s shareholders overwhelmingly approved a plan to raise 4 billion francs ($4.2 billion) on Wednesday. In two votes, shareholders supported the private placement plan and the preferential share rights offer.