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Wednesday, December 6, 2023

Dow, S&P 500 rise after recent losses; investors prepare for inflation, earnings data

Dow, S&P 500 rise after recent losses; investors prepare for inflation, earnings data
© Reuters. Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 7, 2022. REUTERS/Brendan McDermid

 

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By Caroline Valetkevitch

NEW YORK (Reuters) – The Dow and S&P 500 were higher in late afternoon trading Tuesday as investors snapped up some beaten-down shares, but volatility was high ahead of U.S. inflation data and the start of third-quarter earnings later this week.

The Nasdaq was lower, extending recent declines.

Amgen Inc (NASDAQ:AMGN) shares were up 6.5%, giving the Dow its biggest boost, after a report that Morgan Stanley (NYSE:MS) upgraded the drugmaker’s stock to “overweight” from “equal weight.”

Investors were anxiously awaiting the producer price index report Wednesday and consumer price index data on Thursday.

Federal Reserve Bank of Cleveland President Loretta Mester said Tuesday that even with a large amount of interest rate increase this year, the central bank has yet to get inflation under control.

The Fed has been aggressively raising rates to curb inflation and is expected to continue with more increases into next year.

Stocks have been hit in recent weeks by worries about how aggressive the Fed may still need to be with hiking rates and the potential impact on the economy.

“A few investors might be trying to bet on a better-than-expected inflation report,” said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.

“Sentiment is negative, and markets have been down pretty consistently for the last three, four weeks,” he said.

The S&P bank index was down 1.1% ahead of quarterly results from some major banks later this week. The reports are expected to kick off the third-quarter reporting period for S&P 500 companies.

The Dow Jones Industrial Average rose 333.72 points, or 1.14%, to 29,536.6, the S&P 500 gained 13.86 points, or 0.38%, to 3,626.25 and the Nasdaq Composite dropped 13.03 points, or 0.12%, to 10,529.07.

“We’ve been pretty oversold,” said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles.

“It’s a matter of people squaring up positions and shorts covering.”

Adding to recent fears about the economy, the International Monetary Fund predicted a meager 1.6% growth in the U.S. economy this year.

Advancing issues outnumbered declining ones on the NYSE by a 1.37-to-1 ratio; on Nasdaq, a 1.05-to-1 ratio favored advancers.

The S&P 500 posted one new 52-week high and 95 new lows; the Nasdaq Composite recorded 19 new highs and 517 new lows.

Source: Investing.com

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