NEW YORK (AP) — Stock prices on the New York Stock Exchange gained a little more ground Wednesday after the big advance they recorded the day before.
The S&P 500 index rose 7.18 points, or 0.2%, to end at 4,502.88. The Dow Jones Industrial Average gained 163.51 points, or 0.5%, to 34,991.21, and the Nasdaq Composite gained 9.45 points, or 0.1%, to close at 14,103.84.
Target helped lead the market with a 17.8% advance after its latest quarter profits were much higher than analysts had predicted. But another big retailer, TJX, fell 3.3% after the parent company of department stores TJ Maxx and Marshalls gave a profit forecast for the upcoming holiday shopping season below analysts’ estimates.
Wall Street’s overall moves were more timid after its best day since April, when an encouraging inflation report boosted investors’ hopes that the Federal Reserve may have finally ended its interest rate hikes. This, in turn, bolstered hopes that the Fed can strike the balance needed to rein in high inflation without triggering a painful recession.
After 15 days of November, the S&P 500 is already up 7.4%, which would be its best month in a year if it does not register any further movement in the next two weeks.
Treasury yields rose on Wednesday, retreating somewhat from the sharp declines the day before that had helped so much to the rally in stocks. The 10-year bond yield rose from 4.45% to 4.53%, adding some pressure to financial markets.
Another inflation report released Wednesday also put it below expectations. Wholesale prices were 1.3% higher in October than a year earlier, and were surprisingly down from September levels. That raised hopes that inflation is cooling enough for the central bank to stop its barrage of rate hikes.
The Federal Reserve has already set its main interest rate at its highest level since 2001, from virtually zero last year. With these increases, he hopes to slow down the economy and affect investment prices enough to reduce high inflation, without going overboard.
But a separate report on U.S. retail sales released Wednesday morning “complicates the picture,” according to Chris Larkin, managing director of E-Trade at Morgan Stanley.
Sales fell 0.1% in October from September, holding up better than the 0.3% drop expected by economists. Better-than-expected sales at U.S. retailers are an indicator of a healthier economy, which is important given continuing concerns about a possible recession. But they could also fuel upward pressure on prices, which could make the Fed nervous about interest rates.
Associated Press writers Yuri Kageyama and Matt Ott contributed to this report.
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2023-11-15 23:13:38
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