- Investors are still evaluating Wednesday’s Fed minutes
- Kohl lowers forecasts for 2022
- Indices: Dow up 0.1%, S&P 500 up 0.2%, Nasdaq up 0.2%
NEW YORK, Aug 18 (Portal) – US stocks closed higher on Thursday as an upbeat sales forecast from Cisco Systems helped boost the technology sector, while data showed the economy remained relatively strong.
Investors were still evaluating Wednesday’s July Federal Reserve meeting minutes, which they initially saw as supporting a less aggressive stance from the central bank.
But the minutes did not clearly indicate the pace of rate hikes, showing that policymakers were determined to raise rates to tame inflation. Continue reading
“We’re at a point where people are trying to make a judgment about whether the inevitable higher interest rates will choke off the market’s upside potential,” said Rick Meckler, a partner at Cherry Lane Investments in New Vernon, New Jersey.
“There are really two camps – one that is feeling worst is behind us and continues to buy these sell-offs, and the camp that is feeling worst is ahead and so it’s kind of a bear market rally that’s going to pull back. “
Traders are expecting a bigger chance of a 50 basis point rise in borrowing costs in September rather than a third 75 basis point rise. Continue reading FEDWATCH
Meanwhile, Cisco (CSCO.O) stock rallied 5.8% and was among the biggest positives across the big three indexes after issuing an upbeat forecast for first-quarter sales late Wednesday, as a rebound from COVID-19 eased supply chain bottlenecks in China. Continue reading
The Dow Jones Industrial Average (.DJI) was up 18.72 points, or 0.06%, to 33,999.04, the S&P 500 (.SPX) was up 9.7 points, or 0.23%, to 4,283.74 and the Nasdaq Composite (.IXIC) is up 27.22 points, up 0.21% to 12,965.34.
Volume on US exchanges was last seen at 9.43 billion shares, which would be the lowest for the year so far.
Thursday’s data supported the view that the Fed should tighten and showed solid momentum on the US economic front.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S. August 15, 2022. Portal/Brendan McDermid/File Photo
Continue reading
The Philadelphia Federal Reserve’s monthly manufacturing index rose to 6.2 this month from a minus 12.3 in July, beating all 30 estimates in a poll by Portal economists.
Also on Thursday, a number of Federal Reserve officials said the Fed must keep raising borrowing costs to bring high inflation under control, although they debated how quickly and by how much they should be raised. Continue reading
The Fed has raised interest rates by 225 basis points so far this year.
The focus could now turn to the Fed’s annual symposium in Jackson Hole later next week.
Other gainers in high-growth stocks included Nvidia (NVDA.O), which rose 2.4%.
Among the day’s decliners, shares of Kohl’s Corp (KSS.N) slipped 7.7% after the retailer lowered its full-year sales and earnings forecasts. Read more Target Corp (TGT.N) fell 1.3%, adding to Wednesday’s losses as it reported a stronger-than-expected 90% drop in quarterly earnings.
After a brutal start to the year, shares have skyrocketed since mid-June, thanks in part to positive earnings.
With the recent big move and second-quarter gains almost complete, the market might be “a bit poised,” Meckler said.
Rising issues predominated on the NYSE at a 1.36 to 1 ratio; on the Nasdaq, a 1.18 to 1 ratio favored movers.
The S&P 500 posted 5 new 52-week highs and 29 new lows; the Nasdaq Composite posted 62 new highs and 63 new lows.
Additional reporting from Bansari Mayur Kamdar and Devik Jain in Bengaluru; Edited by Shounak Dasgupta and Deepa Babington
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