The Dow Jones New York Stock Exchange closed higher on Tuesday (November 15) following the US released a lower-than-expected Producer Price Index (PPI). This has fueled expectations that the Federal Reserve (Fed) will slow down its interest rate hike. However, the market has been pressured by concerns regarding geopolitical tensions. After reports that a Russian missile was shot down in Poland
The Dow Jones Industrial Average closed at 33,592.92 points, an increase of 56.22 points, or +0.17%, the S&P 500 closed at 3,991.73 points, an increase of 34.48 points, or +0.87%, and the Nasdaq Index closed at 11,358.41, an increase of 162.19 points, or +1.45%.
New York stocks rose following the U.S. PPI, which gauges inflation on producer spending, rose 8% in October year over year. That was below analysts’ expectations of 8.3 percent and slowing from September’s 8.4 percent. Core PPI, which excludes food and energy, rose 5.4 percent year-on-year. slowing from 5.6% in September.
Slowing inflation prompted investors to cut their interest rate outlook at the Fed’s December meeting. The CME Group’s FedWatch Tool shows investors weigh 80.6% that the Fed will raise interest rates 0.50% at its Dec. 13-14 meeting, and 19.4% that the Fed will raise rates 0.75%. %
The market was also supported by better-than-expected results of major retailers Wal-Mart and Home Depot, with Walmart reporting third-quarter earnings per share of $1.50. It beat analysts’ estimates of $1.32. Home Depot reported third-quarter earnings per share of $4.24, above analysts’ expectations of $4.12.
The strong performance boosted Walmart and Home Depot stock prices and was also a boon to other retailers, with Walmart shares up 6.62%. Home Depot shares were up 6.62%. The stock rose 1.63%, Target shares rose 3.31%, Lowe’s rose 2.03%, Best Buy rose 1.80%.
Technology stocks rallied on the prospect of a Fed slowdown in interest rates, with meta shares soaring 2.50%, Alphabet stocks gaining 2.86%, Apple stocks gaining 1.19% and Tesla stocks gaining 1.82%.
Shares of Chinese internet and retail companies listed on the U.S. stock market soared on the report. China’s online retail sales rose more than 15 percent in October and online retail sales in the first 10 months of the year rose 7.2 percent, with Alibaba Group Holdings shares gaining 11.17 percent. NetEase rose 9.75%, Baidu shares rose 9.02%, Pinduoduo rose 8.53%.
However, the trading atmosphere was pressured during the day. After the news agency AP reported citing the disclosure of US intelligence agencies that A Russian missile has been shot down in a village in eastern Poland bordering Ukraine. resulting in two fatalities
Steve Sosnick, analyst at Interactive broker said “The New York Stock Exchange turned positive following reports that a Russian rocket had been shot down on Polish territory. Such a move might worsen the situation, however, for now the market is just worried. Not even panic yet.”
