US stocks rise as traders digest economic data, wait for Fed minutes

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

How are stock indices traded?
  • The Dow Jones Industrial Average DJIA,
    +0.27%
    rose 136 points, or 0.4%, to 34,233

  • The S&P 500 SPX,
    +0.54%
    gained 18 points, or 0.5% to 4,022

  • The Nasdaq Composite COMP,
    +0.91%
    83 points or 0.7% added to 11,260

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

What drives markets?

Stocks rose on Wednesday in an effort to follow Tuesday’s gains, which were driven in part by lingering hopes that the Federal Reserve will slow the rate at which it raises rates.

The minutes of the November meeting, scheduled for 2 p.m. Eastern time, will be closely watched for clues on how high the fed-funds rate should go and how long it will stay there to bring inflation under control. The Fed raised its reference rate by 0.75 percentage point at its last meeting to a range of 3.75% to 4%.

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“Investors may be looking for evidence that they have acted prematurely, or that there is actually more support for such a slowdown in tightening and less support for higher closing rates than they previously thought,” said Craig Erlam, senior market analyst at OANDA. , in a note to customers.

Read: This is not a market of ‘close your eyes and buy whatever’

In US economic data, US durable goods orders rose 1% in October, while claims for unemployment benefits rose by 17,000 to 240,000 last week, the highest level since August. Meanwhile, the S&P Global Flash US purchasing managers’ indices fell from 47.8 to 46.1 in November. S&P Global flash US manufacturing purchasing managers indices fell from 50.7 to 47.6 in November. Any number below 50 reflects a shrinking economy.

The University of Michigan’s latest consumer confidence index fell to 56.8 in November and remained low on concerns about high inflation and the rising likelihood of a recession.

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

The U.S. exchanges will be closed for Thanksgiving Day on Thursday, November 24, and will reopen the next day only for an abbreviated session on Black Friday, the annual year-end shopping event, with trading ending at 1 p.m. Eastern Time on November 1. 25.

Bond yields remained stable, with those of the 10-year Treasury TMUBMUSD10Y,
3.727%
trading around 3.711% and the 2-year TMUBMUSD02Y,
4.508%
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 October 5, 1981, suggesting some say an inevitable recession.

Elsewhere, oil prices CL.1,
-4.46%
were modestly lower, while natural gas futures NG00,
+8.01%
climbed 8% to $7,982 per million British thermal units, with European natural gas futures also rising sharply after Russian energy giant Gazprom threatened to cut supplies to Europe via a Ukrainian pipeline. Markets are also awaiting news of an agreement between the US and its allies on a price cap for Russian oil.

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Companies in the picture
  • Manchester Unitedfrom MANU,
    +16.63%
    Shares rose 14% on Wednesday after the club’s owners confirmed they are exploring potential financial investments or an outright sale of the legendary Premier League club.

  • HP Inc.
    HPQ,
    -0.05%
    Shares fell 0.9% on Wednesday after the company’s executives announced plans on Tuesday to cut up to 10% of their workforce over the next few years while issuing weaker-than-expected earnings estimates.

  • Credit Switzerland
    CSGN,
    -4.49%
    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. With two votes, shareholders supported a plan for a private placement and a rights issue of discounted shares.

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