Monday, June 12, 2023

Dow and S&P advance as data and the debt ceiling restrain gains in US stocks

 In New York: After manufacturing data raised concerns about a slowing US economy that could help bring down inflation amid ongoing debt ceiling negotiations, the S&P 500 and Dow ended Monday with modest gains, while a rise in Meta shares helped lift the Nasdaq.

The New York Central bank's "Domain State" record, a measure of assembling action in New York State on current business conditions, tumbled to a perusing of - 31.8 in May, against assumptions for - 3.75.

Tim Ghriskey, a senior portfolio strategist at Ingalls & Snyder in New York, stated, "This is always tough because we are in a period now where bad news is actually good news from a stocks standpoint and vice versa, but you still get the market reacting when you get a bad number because everyone then begins to worry about a recession."

Therefore, "we want the economy to be weak enough to bring down inflation without being too weak to cause a recession."

Experts forewarned that the indicator is likewise unpredictable, diminishing its effect.

Markets were also subdued by the conflict in Washington over debt ceiling talks between the White House and Republicans. A meeting was scheduled for Tuesday, but it was unlikely that a deal would be reached then.

According to Ghriskey, "We’ve been through this before, and eventually they come to their senses and do something, compromise, and actually get something done instead of playing this game of chicken," and "it really is who blinks first."

The Dow Jones Modern Normal rose 47.98 focuses, or 0.14%, to 33,348.6, the S&P 500 acquired 12.2 focuses, or 0.30%, to 4,136.28 and the Nasdaq Composite added 80.47 focuses, or 0.66%, to 12,365.21.

After Loop Capital changed its rating from "hold" to "buy," Meta Platforms Inc. saw a gain of 2.16 percent, making it one of the biggest boosts to the Nasdaq and S&P 500.

In a generally light week for financial information, financial backers will zero in on retail deals, week after week jobless cases and lodging information.

As the Federal Reserve tries to curb high inflation, expectations for when it will stop its interest rate hike cycle have increased due to slower economic data.

Contrary to market expectations for a rate cut before the end of the year, a number of Fed officials said on Monday that they expect interest rates to stay high.

What's more, Richmond Central bank President Thomas Barkin said in a meeting with Reuters that he isn't yet persuaded expansion is on a consistent way descending, despite the fact that he is OK with the Fed involving an information subordinate methodology for extra rate climbs.

Investors will keep an eye on Fed Chair Jerome Powell's remarks on Friday to see if they contain any clues about where interest rates will go this year.

After reaching an agreement on Sunday to acquire US pipeline operator Magellan Midstream Partners for $18.8 billion, Oneok Inc. fell 9.06 percent. Magellan's stock rose 12.99%.

Western Computerized Corp climbed 11.26% after Reuters announced the memory chip firm and its Japanese JV accomplice Kioxia Property Corp are accelerating consolidation talks.

The number of shares traded on US exchanges was 9.06 billion, down from the 11.1 billion average for the entire session over the previous 20 trading days.

Propelling issues dwarfed declining ones on the NYSE by a 2.10-to-1 proportion; Advancers were favored by a ratio of 1.85 to 1 on Nasdaq.

Nine new 52-week highs and seven new lows were recorded by the S&P 500; the Nasdaq Composite recorded 59 new ups and 136 new downs.

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