US indices in the green zone
2022.11.22 15:20
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US indices in the green zone
Budrigannews.com – Investor sentiment was boosted on Tuesday by a string of mostly positive retailer quarterly results and a rebound in energy and technology stocks. This led to a rally in the S&P 500.
The lost 1.02 percent, increased 0.97%, or 325 points, and increased 0.80 percent.
Best Buy,after raising full-year guidance and reporting that it beat on both the top and bottom lines as a result of an increase in promotional activity that boosted demand, up 11%, led a surge in retailers.
Dick’s Sporting Goods Inc.likewise Abercrombie & Fitchafter quarterly results that exceeded Wall Street estimates, the company’s shares increased by 7% and 18%, respectively.
After Saudi Arabia stated that OPEC and its allies, referred to as OPEC+, would continue with plans to cut production, energy stocks reduced their losses from the previous day and continued to add gains.
However, Commerzbank stated in a note that “if oil demand in China indeed turns out to be weaker than expected, this would point to an oversupplied market, at least in the short term.” Cities in China, the world’s top energy importer, have imposed restrictions following a spike in Covid cases.
As the Federal Reserve’s October meeting minutes were released, tech stocks were rising, supported by a fall in Treasury yields.
At its meeting in December, the Federal Reserve gave hints that the rate of increase would be slowed down, but it also said that the maximum rate of increase would be higher than anticipated.Concerns about the Fed’s inability to avert a soft landing—also known as a recession—at a time when global growth is slowing have been raised by the prospect of higher rates for longer periods of time.
Melissa Brown, Qontigo’s managing director of applied research, told Investing.com’s Yasin Ebrahim on Tuesday, “We would all like to think that the Fed will be able to do that, but there’s a good chance that they may not [deliver a soft landing].”
Brown went on to say that, “Historically, we’ve seen very few actual soft landings…as they tightened for too long or too much.”
Zoom Video CommunicationsOn the other hand, it beat Wall Street estimates after cutting its full-year guidance due to concerns about consumer spending slowing.The video conferencing programming producer faces close term headwinds including extreme Coronavirus comps, little to medium-sized business beat, and normalizing deals cycles, that will “make close term headwinds to income development over the course of the following 4-6 quarters,” Goldman Sachs said in a note.However, “we believe revenue growth can be potentially sustained” was added in the longer term.
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