Wall Street is headed for a higher close

ABM
Wednesday 11 January 2023 19:49

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US stocks were higher on Wednesday with a few hours of trading remaining.

The leading S&P 500 index rose 0.9 percent to 3,952.90 points, the Dow Jones index rose 0.5 percent to 33,884.67 points and the Nasdaq was 1.2 percent higher at 10,874.92 points.

Investors are particularly looking forward to the US inflation report on Wednesday, which will be published on Thursday. Investors will be looking for more evidence that inflation continues to fall, giving the Fed an opportunity to ease monetary policy soon.

“Investors appear to be pricing in expectations that inflation will slow further,” Hargreaves Lansdown said.

“Reports of the easing of global supply chain bottlenecks and the reopening of China mean markets are holding renewed optimism. However, there is a ceiling to this good mood. Equity markets remain highly sensitive,” added economists at Hargreaves Lansdown.

Fed officials remain resolute in emphasizing that they are ready to continue their aggressive tightening policies to ensure that high inflation is subdued.

On a macroeconomic level, it was announced on Wednesday that the number of mortgage loan applications in the US increased last week. The market index rose from 184.5 to 186.7.

Euro/dollar was quoted at 1.0751. At the start of the trading day in New York, the currency pair was still moving at 1.0763 and around the close of the American stock exchanges on Tuesday, there was a level of 1.0546 on the boards.

Oil rose 2.7 percent on Wednesday, even as the latest data from the U.S. Energy Agency EIA showed U.S. crude inventories rose sharply last week.

On a macroeconomic level, two releases are scheduled for Thursday in the US. Inflation data for December and the weekly aid applications will be published before the market closes.

Company news

Bed Bath & Beyond plans to lay off even more staff to further cut costs after the company’s liquidity and earnings further deteriorated in the latest quarter. The stock rose 40.8 per cent.

Blend Labs will save more than $100 million in costs, including by sending 28 percent of its employees back home to America. The stock rose 1.5 per cent.

Rivian Automotive has said goodbye to a number of top managers after production targets were not reached in 2022. The share was 3.3 percent higher.

Warner Brothers Discovery rose 0.9 percent. Bank of America issued a buy rating with a $21 price target.

Tesla is considering a $775 million plant expansion in Texas. It’s a sign the electric carmaker is looking to keep growing despite investor concerns about declining demand for Elon Musk’s company’s cars.

Apple was least affected by the sharp drop in computer shipments during the holiday season, according to data from the International Data Group. Worldwide, the number of computers fell by 28 percent to 67.2 million units in the fourth quarter of last year.

Airlines recovered from earlier losses. Due to an FAA malfunction, flight information was unavailable to pilots and cabin crew in the United States. United Airlines would have suspended all domestic flights. Southwest Airlines rose 0.2 percent, while United Airlines rose 3.8 percent.

Quarterly earnings season kicks off Friday with a number of major U.S. banks, including JPMorgan Chase and Bank of America. Analysts on average expect a 15 percent lower profit for the banks, which would still be $28 billion.

Wells Fargo must drastically cut its mortgage lending after a series of scandals and a record fine. The bank mainly focuses on existing customers and will no longer work with intermediaries.



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