Editor’s Picks, Stock News6:58am.2023-12-23
The Dow Jones New York Stock Exchange index closed slightly lower on Friday (Dec. 22), while trading was light before the market closed on Monday (Dec. 25) for Christmas Day. and investors adjusted to the release of lower-than-expected US inflation data. which reinforces the prediction that The US Federal Reserve (Fed) will lower interest rates next year.
The Dow Jones Industrial Average closed at 37,385.97 points, down 18.38 points or -0.05%, the S&P 500 index closed at 4,754.63 points, up 7.88 points or +0.17%, and the Nasdaq index closed at 14,992.97 points, up 29.11 points or +0.19%.
The US stock market rose in the morning. After the release of the data, inflation slowed closer to the Fed’s target. The US Department of Commerce revealed on Friday that The Headline PCE Price Index, which includes food and energy categories, rose 2.6% year-on-year in November from 2.9% in October and was below the figure. Analysts forecast 2.8%.
On a monthly basis, the general PCE index fell 0.1% in November from 0.0% in October, while analysts expected it to be stable.
As for the Core PCE Index (Core PCE), which does not include food and energy categories. Inflation, which is the Fed’s most important measure, rose 3.2% in November year-on-year from 3.4% in October and was below analysts’ expectations of 3.3%.
On a monthly basis, the Core PCE Index rose 0.1% in November from 0.1% in October and was below analysts’ expectations of 0.2%.
The PCE index is considered a measure of inflation that can detect changes in consumer behavior. and covers the prices of goods and services more broadly than the Consumer Price Index (CPI).
All three major stock indexes posted weekly gains for the eighth week in a row, with the S&P 500 posting its longest weekly gain since late 2017.
Meanwhile, the Dow Jones and Nasdaq index posted their longest consecutive weekly gains since the beginning of 2019.
The S&P 500 Index is about 1% below the record closing level reached in January 2022. If the market closes above this level, This would confirm that the index has been in a bull market since hitting its low in October. 2022
In addition, the market was also supported by the US Department of Commerce revealing that U.S. orders for durable goods, such as airplanes, cars and heavy machinery with a useful life of three years or more, rose 5.4% in November, the biggest gain since July. 2020 and higher than analysts expected. It may increase only 2.0% after falling 5.1% in October.
Total orders for basic durable goods This is an order for capital goods that does not include aircraft. and weapons products An indication of business spending plans, it rose 0.5% in November, higher than analysts’ expectations for a 0.2% increase after falling 0.3% in October.
CME’s FedWatch tool indicates that financial markets accept a 74.1% chance that the Fed will cut interest rates by 0.25% next March.
Among the 11 stocks in the S&P 500 index, the luxury goods sector dropped the most. Meanwhile, the group of essential consumer products increased the most.
For the movement of individual stocks Nike shares fall 11.8% after cutting full-year sales forecast. This is because consumers are careful with their spending. Meanwhile, Foot Locker shares and Dick’s Spotting Goods shares fell 2.7% and 3.9%, respectively.
By InfoQuest News Agency (23 Dec. ’23)
Tags: dowjones, Dow Jones, New York Stock Exchange
2023-12-23 02:09:10
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