Stocks Rise, Adding to Thursday’s Solid Gains…..
U.S. equities ended the day and week higher following Thursday’s trading session, which posted the largest daily gain since 2020. Yesterday’s sharp rise came in the wake of a cooler-than-expected October consumer price inflation report, which seems to be curbing expectations regarding how aggressive the Fed could remain with its monetary policy tightening. The ongoing turmoil in the cryptocurrency markets kept sentiment in check after crypto exchange FTX.com voluntarily began Chapter 11 bankruptcy procedures. The bond markets were closed today in observance of the Veteran’s Day holiday, giving Treasuries a breather after yesterday’s plunge, while the U.S. dollar continued its fall. Crude oil prices were sharply higher, and gold gained modest ground. News on the equity front was focused on some tertiary earnings reports, with Toast Inc. posting a wider loss that expected, and Doximity beating on both the top and bottom lines, as well as announcing a new share repurchase program. The lone economic report for today showed that consumer sentiment for November deteriorated more than expected. Stocks in Asia rallied following yesterday’s gains in the U.S and amid news that China will relax travel restrictions, while European stocks ended the day mixed, tempering the previous trading session’s solid gains.
The Dow Jones Industrial Average advanced 32 points (0.1%) to 33,748, the S&P 500 Index increased 37 points (0.9%) to 3,993, and the Nasdaq Composite rose 209 points (1.9%) to 11,323. In moderately heavy volume, 5.5 billion shares of NYSE-listed stocks were traded, and 5.8 billion shares changed hands on the Nasdaq. WTI crude oil climbed $2.49 to $88.94 per barrel. Elsewhere, the gold spot price gained $17.20 to $1,770.90 per ounce, and the Dollar Index tumbled 1.8% to 106.39. Markets ended noticeably higher for the week, as the DJIA went up 4.2%, the S&P 500 rose 5.9%, and the Nasdaq Composite soared 8.1%.
Consumer sentiment tumbles, bond markets closed after yesterday’s plunge
The preliminary University of Michigan Consumer Sentiment Index for November showed that sentiment deteriorated more than expected, falling to 54.7 from October’s final reading of 59.9, well below the Bloomberg consensus estimate calling for a slight decrease to 59.5. The index remained above the record low seen in June, but there was noticeable decline in the current conditions portion of the index, joining a more modest decrease in the expectations component of the report. The 1-year inflation forecast ticked lower to 5.0% from 5.1% in October, and the 5-10-year inflation outlook rose to 3.0% from 2.9%.
The U.S. bond markets were closed today in observance of the Veteran’s Day holiday, with the yield on the 2-year note sitting at 4.32%, the yield on the 10-year note at 3.82%, and the 30-year bond at 4.06%.
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