Orignally published on 2021-11-23 15:00:00 by www.marketwatch.com
U.S. stocks traded slightly higher, with the technology sector shaking off rising Treasury yields, while the energy sector rallied in line with a bounce by oil futures even though the White House announced a coordinated release of crude reserves.
How are stock-index futures trading?
- The Dow Jones Industrial Average DJIA rose 61.80 points, or 0.2%, to 35,681.05.
The S&P 500
gained 7.55 points, or 0.2%, to trade at 4,690.49.
The Nasdaq Composite
ticked up 20.98 points, or 0.1%, to 15,875.74.
On Monday, the Dow Jones Industrial Average
rose less than 0.1% to end at 35,619.25. The S&P 500
fell 0.3% after hitting an intraday all-time high at 4,743.83 earlier in the session. The Nasdaq Composite Index
fell 1.3% to 15,854.76 for its biggest decline since Nov. 10.
What’s driving the market?
Monday’s late-day weakness for Wall Street was tied by some analysts to expectations that Federal Reserve Chairman Jerome Powell — nominated to a second term by President Joe Biden — could tighten policy faster than Lael Brainard, who was appointed Vice Chair but had also been in the running for the top job.
“Ultimately I don’t see how the Powell-led Fed is more hawkish today than it was last week, but we should always beware linear thinking: even the Fed can adapt and learn from the persistently high inflation,” said Neil Wilson, chief market analyst for Markets.com, in a note to clients.
“You never know, perhaps the Fed — and the White House — are starting to heed some warnings about what untethered inflation can do. In summary, you could say there has been a whiff of a hawkish tilt at the Fed in recent weeks and the administration is OK with that,” said Wilson.
Investors are also watching yet another resurgence of new coronavirus cases in Europe and Asia in particular which have prompted another round of restrictions on businesses and consumers to try to limit infections.
Trading volumes are expected to thin out as Thursday’s U.S. Thanksgiving Day holiday nears. Investors will get the IHS Markit flash manufacturing and services purchasing managers indexes for November at 9:45 a.m. Eastern Time.
U.S. markets will close Thursday and open a half-day on Friday in observance of the Thanksgiving Day.
Across other markets, oil futures erased losses to turn higher after the White House announced a plan to release 50 million barrels of oil from the U.S. Strategic Petroleum Reserve, or SPR, in coordination with other countries. West Texas Intermediate crude
the U.S. benchmark, was up 2.6% at $78.68 a barrel. Brent crude
the global benchmark, rose 2.5% to $81.72 a barrel. Crude futures had dropped to a seven-week low on Friday, pressured in part by building expectations for a release of crude from reserves.
The S&P 500 energy sector jumped 2.6%, leading the way higher.
What companies are in focus?
Shares of Zoom Video Communications
fell 15.8% after company executives detailed falling revenue on a conference call late Monday. That was after the company posted a forecast beating outlook, revenue and earnings.
shares tumbled 16% after the electronics retailer forecast holiday season comparable sales below expectations, though it reported a quarterly beat on the top and bottom lines, however, with a profit of $2.08 per share coming in 17 cents a share above estimates.
Abercrombie & Fitch
shares dropped 14.9%. The retailer’s results beat forecasts as Chief Executive Fran Horowitz spoke of “ongoing supply chain constraints,” delivery delays and higher costs.
Shares of XPeng Inc.
rallied 10.4% after the China-based electric vehicle maker reported a wider-than-expected third-quarter loss, but revenue above forecasts and delivered an upbeat fourth-quarter outlook.
shares rose 5.6% after the retailer matched profit forecasts and topped expectations for sales, but saw falling gross margin and said it was moving to a $1.25 price point for all its stores.
How are other assets trading?
The ICE U.S. Dollar Index
a measure of the currency against a basket of six major rivals, was down 0.1%.
The Stoxx Europe 600
slipped 0.8%, while London’s FTSE 100 index
was up 0.2%.
In Asia, the Shanghai Composite
finished up 0.1%, while the Hang Seng Index
fell 1.2% in Hong Kong. China’s CSI 300
was flat and Japan’s Nikkei 225
was closed for a holiday.