U.S. stocks mostly higher as strong economic data lifts sentiment ahead of Powell speech

Date:

U.S. stocks traded mixed at noon on Thursday, with the S&P 500 and Nasdaq Composite heading for consecutive gains after a string of strong economic data as investors waited to hear from Federal Reserve Chairman Jerome Powell.

How the shares trade?
  • S&P 500 SPX,
    +0.78%
    rose 18 points, or 0.4%, to 4,158.

  • Dow Jones Industrial Average DJIA,
    +0.38%
    lost 3 points, or less than 0.1%, to 32,966.

  • Nasdaq Composite COMP,
    +1.10%
    were up 89 points, or 0.7%, to 12,520.

On Wednesday, the Dow Jones Industrial Average rose 60 points, or 0.18%, to 32969, the S&P 500 rose 12 points, or 0.29%, to 4141, and the Nasdaq Composite gained 50 points, or 0.41 %, to 12432. The S&P 500 is up 12.9% from its mid-June low, but remains down 13.1% so far.

What drives markets?

US stocks were largely higher on Thursday after revised measurements on the performance of the US and German economies in the second quarter, along with news of more fiscal stimulus from China. However, the low trading volume contributed to exaggerated intraday swings.

A revised reading of gross domestic product in the second quarter showed the German economy grew by 0.1% in the second quarter, which was better than economists had expected. Meanwhile, in the US, the first revision of the second quarter GDP data showed the economy contracted by just 0.6%, outperforming the 0.9% contraction from the original reading.

To see: GDP shrank 0.6% yoy in the second quarter, but it wasn’t all bad news

Eric Diton, president and chief executive of the Wealth Alliance, said US equities had good reason to celebrate the latest reading of second-quarter GDP.

“The underlying data shows no recession, and that’s quite ideal for this market because this market is praying for a soft landing,” Diton said.

Stocks also suffered from low trading volume, which helped exaggerate the fluctuations in the market. During Wednesday’s session, just 8.8 billion shares were traded on the various Wall Street exchanges. That was the lowest volume so far this year and a drop of 26% from the daily average for 2022, data from Dow Jones shows.

Market strategists blamed the low trading volume on seasonal factors, as well as the reluctance of some investors to make bold bets before Powell speaks Friday at the Kansas City Fed’s annual economic symposium in Jackson Hole, Wyo.

Investors will parse Powell’s comments for clues as to the direction of the Fed’s policy, an issue that has strongly shaped the market trajectory of late.

The market got another taste of Fed talk on Thursday when Patrick Harker, president of the Philadelphia Fed, said he’d like to see the Fed raise its benchmark rate target north of 3.4% and then leave it “for a while.” to sit”.

In other economic news, the number of Americans who filed for unemployment benefits last week has fallen to a monthly low of 243,000, indicating that the number of layoffs is still close to its lowest level.

To see: Unemployment claims drop to a month low of 243,000 with no signs of rising layoffs

Investors also faced a clear mixed bag of earnings reports from a handful of tech companies released after Wednesday’s closing bell. Shares in Sales team
CRM,
-4.83%
decreased by almost 7% while Snowflake
SNOW,
+22.34%,
on the other hand, it rose more than 16% after the numbers and forecasts were well received.

In the meantime, Tesla Inc.
TSLA,
-1.01%
stocks traded marginally lower, erasing their gains from the premarket session as a stock split went into effect at the opening. The EV maker’s board approved the 3-for-1 split on August 5.

Stocks in focus
  • Chinese stocks listed in the US rose after a report by the Wall Street Journal that US and Chinese regulators are approaching an agreement to allow US accountants to travel to Hong Kong to review the track record of Chinese companies listed in New York. York listed are to be inspected. Shares of Alibaba Group Holding Ltd.
    BABA,
    +8.20%
    increased by more than 7%. Shares of iQiyi Inc.
    I.Q,
    +7.53%
    won 6.9%, shares of JD.com Inc.
    JD,
    +9.27%
    Bilibili Inc. and and Huya Inc.
    HUJA,
    +10.16%
    each increased by more than 8%. Shares of a company in electric vehicles NIO Inc. NIO,
    +6.57%
    won more than 5%.

  • Shares of Peloton Interactive Inc.
    PTON,
    -18.51%
    fell nearly 20% after the company posted a significant loss for the most recent quarter. A day ago, the stock rose after news that the company would start selling its products on Amazon.com.

  • Nvidia Corporation NVDA shares were higher despite disappointing earnings figures announced Wednesday evening. Other semiconductor companies also benefited, with: Advanced Micro Devices Inc. AMDen Micron Technology Inc. Both one of the biggest risers in the S&P 500 with gains of over 4%.

  • NetApp Inc.NTAP,
    +7.00%
    a provider of enterprise data, storage and cloud management, rose more than 6% after a strong earnings report.

  • Royal Caribbean Group
    RCL,
    +5.60%
    and Norwegian Cruise Line Holdings
    NCLH,
    +4.63%
    rose by 3.9% and 4.5% respectively.

What about other assets?
  • Oil futures were lower than US crude CL.1,
    -1.48%
    fell 1% to $94.96 a barrel.

  • The yield on 10-year Treasury bonds TMUBMUSD10Y,
    3.040%
    decreased by 2.9 basis points to 3.083%.

  • The ICE Dollar Index DXY,
    -0.21%
    fell 0.2% to 108.50, while gold GC00,
    +0.53%
    rose 0.4% to $1,768 an ounce.

  • Bitcoin BTCUSD,
    -0.76%
    advanced 1.8% to $21,746.

  • Asian markets received an extra boost from the latest stimulus in China. Hang Seng HSI in Hong Kong,
    +3.63%
    rose 3.6% and the Shanghai Composite SHCOMP,
    +0.97%
    up 1%. In Europe the Euro Stoxx is 600 SXXP,
    +0.30%
    rose 0.4%.

— Jamie Chisholm contributed to this article.

Learn how to integrate ESG into your investment portfolio. Join Jennifer Grancio, CEO of Engine No. 1, at the Best New Ideas in Money Festival on September 21 and 22 in New York.

The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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