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US stocks regain ground after falling early

Stocks rose again during Wednesday’s trading day after turning down early in the session. Key averages have risen significantly from initial lows, with the Nasdaq and S & P 500 reaching the positive territory.

Currently, the major averages are narrowly mixed. The Dow is down 60.28 points or 0.2 percent at 35,753.52, while the Nasdaq is up 22.79 points or 0.1 percent at 15,797.93 and the S & P 500 is up 2.33 points or 0.1 percent at 4,693.03.

Wall Street’s early weaknesses arose as US Treasury yields continued to rise, with benchmark 10-year Treasury yields reaching their highest daytime levels in six months.

Yields have been on the rise since President Joe Biden announced his intention to reappoint Federal Reserve Chairman Jerome Powell amid concerns that the central bank could accelerate monetary tightening plans. was doing.

The Ministry of Labor’s report showing that the first claim for US unemployment has fallen to its lowest level in more than 50 years of the week ending November 20 helped boost yields.

Initial unemployment claims fell to 199,000, down 71,000 from the previous week’s revised level of 270,000, according to the Ministry of Labor.

Economists expected unemployed claims to drop from the 268,000 originally reported last week to 260,000.

With a much larger than expected decline, unemployed claims have fallen to their lowest levels since reaching 197,000 in November 1969.

Yields showed a marked drop during the trading day, but the pullback contributed to an attempt to recover on Wall Street.

Bond market volatility arises as a number of US economic data are released, in addition to weekly unemployment claims reports.

The Department of Commerce has released another report showing that orders for durable consumer goods have fallen unexpectedly, but new home sales have increased in October.

Another Commerce Department has shown that both personal income and spending have increased more than expected during the month.

Most of the major sectors showed only modest movements on the day, contributing to the sluggish performance of a wide range of sectors. market..

Computer hardware inventories rose significantly, but the NYSE Arca Computer Hardware Index rose 3% to a five-month daytime high.

HP Inc. (HPQ) is leading the sector after computer and printer manufacturers reported their fourth-quarter results, exceeded expectations, and raised their first-quarter guidance.

Tobacco stocks are also showing great power, reflecting the 1.7% rise in the NYSE Arca Tobacco Index.

In overseas trading, the stock market in the Asia-Pacific region fluctuated in the trading on Wednesday. Japan’s Nikkei 225 Index fell 1.6% and China’s Shanghai Composite Index rose 0.1%.

On this day, the major markets in Europe were also mixed. Germany’s DAX index is down 0.4%, France’s CAC 40 index is up 0.1%, and the UK’s FTSE 100 index is up 0.3%.

In the bond market, government bonds showed a marked recovery after seeing initial weaknesses. As a result, the yield on the benchmark 10-year bond, which moves in the opposite direction of the price, reaches a high of 1.693% and then drops by 1.6 basis points to 1.651%.

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US stocks regain ground after falling early

Source link US stocks regain ground after falling early

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