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Home » Dow Jones attempts second weekly gain ahead of CPI and Fed

Dow Jones attempts second weekly gain ahead of CPI and Fed

The DOW JONES, which lost 0.09% at the start of trading, reversed and rose 0.26% to 33,920 points, while the S&P 500 rose 0.53% to 4,316 points. The NASDAQ 100 is up 0.90% to 13,358 points.

During yesterday’s Thursday session, shares continued to rise making it possible The S&P 500 records its highest closing level of the year. The index rose by 0.62% to 4,293.93 points, just below the important threshold of 4,300 points. For its part, the Dow Jones rose 168.59 points, or 0.5%, for the third straight day. The Nasdaq Composite rose 1.02%.

Investors were heartened by signs that a broader range of stocks, including small-caps, were participating in the recent rally, although some market participants warned such gains may not last long.

“It is not clear whether it is, for example, a reduction in positions due to the recessionary concerns, which could potentially reverse as in August 2022, when the last upward momentum in the S&P towards 4,300 points was observed, or whether it is something at stake. “sustainable,” Jason Hunter, head of technical strategy at JPMorgan, told CNBC. “So we believe we’re at a fork in the road.”

The latest stimulus has finally allowed the S&P 500 to enter the bull market for now, after rising 20.04% from the bottom set on Oct. 12 last year. “This was the longest bear market the index has seen since it ended in May 1948 (248 days),” says Juan J. Fernández-Figares of Link Gestión. However, the expert reminds that the index is still 10.5% below its all-time high from early January 2022.

The S&P 500 is heading for a fourth straight week of gains, the longest since last August, with the index up nearly 0.3% at Thursday’s close. The Dow heads for a second straight week of gains for the first time since April, up 0.2%. Finally, the Nasdaq Composite is on the verge of breaking its six-week winning streak, with a slight 0.02% decline.

With little news to report this Friday, all eyes are on the monetary policy meetings that the Federal Reserve and ECB will be holding next week. As for the US, the market expects no rate hike for the first time since March last year, although all indications are that the uptrend could resume in July. However, keep in mind that the May CPI will only be released a day before the Fed’s announcement on Tuesday.

Bond yields are rising today in the bond markets, which are always closely linked to monetary policy movements. The 10-year US bond is offering a yield of 3.7529%, up four basis points, while the 2-year bond is offering a three-point yield, up to 4.5556%.

As for today’s Wall Street leaders, General Motors is up nearly 3% after its CEOs, Mary Barra, and Tesla CEO, Elon Musk, announced that the automaker will partner with Ford Motor Tesla uses the charging network of the electric vehicle manufacturer in North America. Tesla shares are also reacting higher.

In analysts’ recommendations, there is good news for Adobe, up over 3% after Wells Fargo experts upgraded their rating to overweight.

Target’s prospects are worse, according to Citigroup analysts. They downgraded the retailer’s recommendation because they fear sales have peaked.

One of the big players is Sonoma Pharmaceuticals, which rose more than 30% after last night announcing a new application for its intraoperative pulse irrigation regimen, which could replace intravenous bags in some surgeries. Sonoma said the treatment will be commercially available in Europe this year and in the US in 2024.

It also follows the trickle of business results. DocuSign jumps more than 5% after the company beat analysts’ expectations for both revenue and earnings on its income statement for the first quarter. DocuSign posted adjusted earnings of 72 cents per share in the first quarter, beating consensus estimates of 56 cents. Revenue was $661 million, beating expectations of $642 million.

Opposite sign for Vail Resorts, down nearly 4% before the bell rings. The hill resort company posted earnings of $8.18 per share for the third quarter, compared to analysts’ forecast of $8.84 per share. Revenue was $1.24 billion, below the market estimate of $1.27 billion.

In commodity markets, oil prices were little changed, with US oil futures falling 0.55% to $71.03 a barrel. Benchmark Brent crude in Europe fell 0.26% to $75.78.

The euro is down 0.21% against the dollar today, bringing the exchange rate for each common currency to $1.0761.

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