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Dow Rejects Rising Yields to Close Bigger Bi Investing.com


© Reuters.

By Yasin Ebrahim

Investing.com — The Doe closed higher on Tuesday, rejecting a rise in Treasury yields, as investors continue to bet on less hawkish Federal Reserve tightening with just days to go until the December inflation report.

He got 0.56% or 186 points, 1% and 0.69%.

Communications services led the broader market higher, helped by the rally of Netflix Inc ( NASDAQ: ), Meta Platforms ( NASDAQ: ) and Warner Bros. Discovery ( NASDAQ: ).

Warner Bros. Discovery rallied more than 8% after Bank of America added the stock to its top ideas list. “We expect the 23rd to be the start of our upside and deleveraging thesis for WBD,” BofA said.

Defensive corners of the market, including consumer staples and utilities, which tend to serve as substitutes for bonds, fell nearly 3%, reversing losses from the day before.

Meanwhile, big tech traded mostly higher, with Apple Inc ( NASDAQ: ) and Microsoft Corporation ( NASDAQ: ) in the green, with the latter supported by a positive note from Wedbush.

“While Azure growth has clearly slowed on the ground, we believe MSFT should be able to exceed its target of 37% Azure growth (constant currency) in the December quarter when Redmond reports earnings in late January,” he said Wedbush in a note, citing recent conversations. with Microsoft customers and partners.

Treasury yields have rebounded from a day earlier as investors this week weigh in on hawkish comments from Federal Reserve officials, including Chairman Jerome Powell.

Federal Reserve Chairman Jerome Powell did not give any new indications on monetary policy, but signaled the central bank’s resolve, saying unpopular decisions may be needed to reduce inflation.

“[R]”establishing price stability when inflation is high may require measures that are unpopular in the short term as we raise interest rates to slow the economy,” the chairman said in prepared remarks.

The remarks echoed those of other Fed members, including San Francisco Fed President Mary Daley and Atlanta Fed President Raphael Bostick who insisted the Fed would have to keep rates higher longer.

The inflation report due on Thursday is expected to show a slowdown in .

“We expect a decline in the main CPI of 0.06% (vs flat consensus), which would lower the rate compared to the previous year to 6.43% (vs 6.5% consensus and down from the peak of 9%), due to lower gasoline prices offset higher food prices,” Goldman Sachs said in a note.

In terms of earnings, Bed Bath & Beyond Inc (NASDAQ:) posted better-than-expected fiscal growth, but its shares rose 27%. The home goods retailer is also believed to have begun its latest round of job cuts as it fights for its financial survival, CNBC reported.

Coinbase Global (NASDAQ: ) closed 13% higher after detailing plans to cut its workforce by 20%, as the cryptocurrency exchange ramps up cost-cutting amid a weaker crypto backdrop.

Meanwhile, Amazon.com Inc (NASDAQ: ) said it is expanding its Buy First service, which allows merchants to offer premium benefits, including free shipping and returns, on its own site. Its shares rose nearly 3%.

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