Nasdaq, S&P 500 rise at the close, Dow Jones erases most losses as yields slip
The stock market wraps up Wednesday near session highs after the latest measure of the Fed's favorite inflation gauge arrived in line with forecasts. And the minutes of the last central bank meeting show that some officials wanted to reduce asset purchases by more than the $15B/month pace to give it more flexibility on when it could adjust interest rates.
Volume is declining as many on Wall Street get a jump on the holiday.
Buying picked up after a weak open when the core PCE price index posted an annual pace of 4.1% for October.
The $NASDAQ 100 Index(.NDX.US$ +0.4% creeps further into the green, while the $S&P 500 Index(.SPX.US$ edges up 0.2%. The $Dow Jones Industrial Average(.DJI.US$ -0.03% stays under the breakeven point.
Treasury yields are are back in the red after early gains. The 10-year Treasury yield is down 3 basis point to 1.64%.
Six out of 11 S&P sectors are lower. Real Estate finishes at the top and Info Tech is in positive territory. Materials is the largest decliner in the session.
Retail is seeing big selloffs, with Gap down 24% and Nordstrom down nearly 30%.
Megacaps are mixed, with Meta in the lead and Amazon trailing.
In a recent note, Morgan Stanley says Big Tech is still underowned.
In other economic reports, personal income and spending rose for October, while the pace of new home sales came in lower than anticipated and November consumer sentiment fell less than expected.
Before the bell, the Labor Department reported weekly claims at 199K.
"We expected a huge drop in jobless claims - the consensus was baffling - which were pushed down by a seasonal adjustment quirk," Pantheon Macro's Ian Shepherdson writes. "It will substantially reverse next week, with claims rebounding to about 250K. That said, the trend in claims is clearly falling, and we expect it to return to the pre-Covid low, about 210K, early next year. Laying off staff is risky when the labor market is so tight, with near-record job openings."
Other premarket indicators weren't as encouraging, though. Durable goods orders fell unexpectedly for October, but that was almost solely due to a decline in plane orders. The GDP Q3 revision came in a little light at 2.1%.
Oil is slightly lower as rumors abound about OPEC+ changing course on production.
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wild horse : Interesting how "Good News becomes bad news". We should celebrate the people back to work. But to markets it means interest rates may go up ...so a bad day!
Milenko : Why we still need negative real rates?
T_shares : The government wonders why they've got a bubble in worthless crypto coins, and EV car companies.. Raise rates and flush out all the toxic trash.
EEC6iRWd4p : Markets lead economic data by a year. Now the market will not grow so fast. It may not grow at all like the 2018-19 period. It makes trades much more fun. Picking will become important.
TvhXCjkODq : 10 year Interest rates need to get back into the 2.5-3% range by the spring. The Fed needs to raise rates. This recovery was faster than hell.
vYcu5FgULx : Core spending will go down to normal and debt will start being used, auto production is already starting to reamp back up as chip shortages fade.