USA: Steady Economic Pace with a Minor Drop in Retail Sales
In October, the US recorded a slight decline in retail sales, but this does not overshadow the overall picture. The indicator fell by just 0.1% against the forecasted 0.3%.
Target in Focus: Quarterly Forecast Excites
Target (TGT.N) pleases investors: the company's shares rose by 17.8% – the biggest one-day jump since August 2019. This is due to a confident forecast of significantly exceeding fourth-quarter profit expectations.
Disney: Rise Thanks to a New Investor
Disney is also on the rise: the increase in stock is due to the news of ValueAct acquiring a stake in the company.
Indices Soar: Dow, S&P, and Nasdaq Show Growth
The Dow, S&P, and Nasdaq indices demonstrate confident growth: Dow +0.47%, S&P +0.16%, Nasdaq +0.07%.
Steady Stock Growth Amid Fresh Inflation Data
The US ends the trading day with a rise in stocks. The latest inflation data fuels hopes for an end to the Federal Reserve's interest rate hikes.
Target Leads the Way: Retail Stock Growth
The rise in Target's stocks spurred the rise of other retailers, such as Macy's and Kohl's, which also showed significant growth.
S&P 500 Consumer Goods Index: Growth Leaders
The S&P 500 consumer goods index, which includes Target, stands out among others, adding 0.7%.
Soft Inflation Decline: A Signal to Optimism
Recent data on the Consumer Price Index and the reduction in producer gasoline prices strengthen the belief in the Federal Reserve's ability to avoid further rate hikes.
Retail Sales: Less Decrease than Expected
The data shows that the decline in retail sales in October was less than expected, indicating economic stability.
Expert Opinion: Confident Management by the Fed
Ronald Temple from Lazard notes that the latest data confirms the Fed's successful soft landing.
The Three-Headed Dragon of Wall Street: Stability After a Spike
Despite significant fluctuations in the previous session, Ronald Temple from Lazard emphasizes the stability of the current situation in light of the latest economic data.
Industrial Giant Dow Jones: Ascending
The Dow Jones industrial index continues to impress: growing by 163.51 points (0.47%) to 34,991.21.
S&P 500 and Nasdaq: Triumph of Technology
The S&P 500 and Nasdaq show notable growth: the S&P 500 added 7.18 points (0.16%), and Nasdaq – 9.46 points (0.07%).
Tuesday for S&P and Nasdaq: Record Gain
The S&P 500 and Nasdaq marked their largest daily percentage gain in six months on Tuesday, thanks to published consumer price data.
Energy and Utilities: A Slight Decline
Within the 11 major sectors of the S&P 500, the energy sector showed a slight decrease of 0.3%, followed by utilities.
Disney and Communication: Rising to the Top
Following consumer goods, the communication sector stands out, thanks to a 3% rise in Walt Disney stocks following news of the stake acquisition by ValueAct Capital.
Russell 2000: Small Business Revival
The Russell 2000 index is on the rise again after a remarkable close up of 5.4% on Tuesday. The pause in interest rate hikes brings particular relief to small companies reliant on variable-rate loans.
Financial Strategies: Expectations from the Federal Reserve
The market expects stability from the U.S. central bank: traders are counting on maintaining the current interest rate level in December, based on data from the CME Group's Fedwatch tool. The first rate cut is projected for May 2024.
International Politics: Key Meeting of U.S. and China Leaders
Investors' attention is drawn to the meeting between U.S. President Joe Biden and Chinese leader Xi Jinping. The dialogue is expected to ease tensions over military conflicts, illegal drug trade, and the development of artificial intelligence.
Legislative Initiatives: U.S. Avoids Shutdown
The U.S. House of Representatives has approved a temporary spending bill that prevents a government shutdown. Bipartisan support increases the likelihood of its passage by the Senate and signing by President Biden before the funding deadline expires on Friday.
Market Outlook for Individual Companies
TJX (TJX.N) experiences a 3.3% drop in stocks after profit forecasts fell below expectations, reflecting the pressure of rising costs on profitability.
Shares of Sirius XM (SIRI.O) strengthened by 6% following the purchase of a stake by Warren Buffett's Berkshire Hathaway.
Stock Market Activity: Exceeding Average Levels
The volume of stock trading on U.S. exchanges reached 11.67 billion, surpassing the average level of 11.15 billion over the last 20 sessions.
Dynamics at the New York Stock Exchange and Nasdaq
At the New York Stock Exchange, rising stocks prevailed with a ratio of 1.36 to 1 in their favor. A similar trend was observed on Nasdaq, where the growth ratio was 1.32 to 1.
S&P 500 and Nasdaq: New Highs and Lows
The S&P 500 index shows confident growth, recording 42 new 52-week highs, while Nasdaq registered 106 new highs and 89 new lows.
Volatility Indicators: Slight Increase
The CBOE Volatility Index, which reflects market volatility, rose slightly by 0.14%, reaching a level of 14.18.
Commodity Markets: Gold and Oil in Focus
December gold futures declined by 0.16%, falling to $1,770 per troy ounce.
WTI crude oil futures for December fell by 2.25%, to $76.50 per barrel, while Brent crude futures for January delivery decreased by 1.81%, to $80.98 per barrel.
Currency Market: Euro and Yen Against the Dollar
In the currency market, the EUR/USD pair showed a slight change of 0.30%, reaching 1.08, while the USD/JPY pair rose by 0.67%, to 151.38.
U.S. Dollar Index: Strengthening Positions
Futures on the U.S. dollar index showed a rise of 0.35%, reaching a level of 104.28.
