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US stocks closed higher on Thursday, with the S & P 500 and the Dow Jones Industrial Average recording a series of several-day losses as strong data boosted confidence in the economy in the wake of rising interest rates this year.
How did the major benchmarks behave?
The Dow
DJIA, + 0.21%
Gains were reduced, but rose 54.65 points, or 0.2%, to 26,439.93, rebounding after three days of decline. The S & P 500
SPX, + 0.28%
rose 8.03 points, or 0.3%, to 2 914 after a four-day drop and the Nasdaq composite index
COMP + 0.65%
advanced 51.60 points, or 0.7%, to 8,041.97.
What led the market?
The Fed raised interest rates on Wednesday in a widely anticipated move and said it would do so again at its December meeting, as well as three more in 2019.
The Fed also raised its gross domestic product growth forecast for 2018 and 2019, and refrained from saying that its policy remained "accommodative". However, the deletion of the word should be seen as an indication of expected performance, the Fed said. President Jerome Powell at the press conference following the announcement of the Fed.
While market participants had anticipated the Fed's policy of gradual interest rate hikes, investors cited monetary policy developments as a major hurdle. An analyst recently wrote that rate hikes in September and December would result in a "triggering the bear market" rate fund swing, which would translate into "a faster fall than the Fed's" .
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In the latest economic data, UI claims rose less than expected over the past week, staying close to lows of several decades. Durable goods orders grew 4.5% faster than expected. US real gross domestic product for the second quarter increased at an annualized rate of 4.2%, unchanged from the previous estimate, according to the Commerce Department.
Pending home sales in the United States fell unexpectedly in August, falling 1.8% in the latest low housing data example.
Political issues were also unresolved as the much-anticipated hearing of Supreme Court candidate Brett Kavanaugh continued Thursday with the testimony of his sexual assault accuser, Christine Blasey Ford. The hearing is not directly related to the economy, although some have speculated that the fact that Kavanaugh is confirmed may influence participation in the mid-term elections.
Issues surrounding trade policy have also persisted. On Wednesday, President Donald Trump accused Beijing of attempting to interfere in mid-term elections in the United States and attempting to hurt him politically. The accusations come as a trade dispute between the two countries intensifies with the imposition of a 25% tariff on over 200 million dollars of Chinese imports in the USA.
While investors have repeatedly ignored the issue of trading, focusing on solid economic data and corporate earnings, any further development on this front could dictate short-term market direction.
What did the analysts say?
"Stock market gains today seem like a recovery after the Fed meeting yesterday. The biggest risk yesterday was that yields at 10 and 30 years, which put their May highs at around 3.12% and 3.24% respectively, would burst on the Fed's new warmongers who could trigger a stock market liquidation in February. Said Colin Cieszynski, chief market strategist at SIA Wealth Management. "Treasury bond yields have fallen since the Fed meeting, taking some of the recent pressure on equities and allowing indices to rebound."
"We are seeing a slight rebound from yesterday and other recent sales. We will be watching the market adapt to an environment of higher interest rates, but overall economic data has been good, with durable goods being particularly strong today, "said Michael O'Rourke. Chief Strategist at JonesTrading.
What stocks have been developed?
Bed Bath & Beyond Inc.
BBBY, -21.00%
fell 21% after reporting profits and revenues that missed expectations.
Apple Inc.
AAPL, + 2.06%
Shares rose 2.1% after an analyst at JPMorgan initiated a stock hedge with an overweight and a price target of $ 272.
Accenture PLC
ACN, -1.69%
fell 1.7% even after posting stronger fourth-quarter earnings and earnings. He also increased his dividend by 10%.
Actions of McCormick & Co. Inc.
MKC -1.23%
declined 1.2% after the agri-food company reported third-quarter adjusted results slightly above expectations but sales slightly below analysts' expectations.
Rite Aid Corp.
RAD -2.34%
were up 2.3% after the pharmacy chain reported a surprise loss in the second quarter, but sales exceeded expectations. He also confirmed his sales prospects for the year.
Geron Corp.
GERN, -62.92%
shares fell 63% after the end of a collaboration agreement with Janssen.
Salesforce.com Inc.
CRM + 1.33%
rose 1.3% after postponing its revenue forecast on Wednesday, saying sales would be supported by customers who use more than one public cloud service.
Tesla Inc.
TSLA, -0.67%
stocks fell in trading after hours after the Securities and Exchange Commission filed a lawsuit against general manager Elon Musk, alleging fraud related to a tweet that claimed it was planning to take the private car company.
How were the other markets going?
Shares in Asia have fallen due to escalating tensions between the United States and China. Major European indices also fell, as Italy's fiscal position was particularly uncertain.
Crude oil
CLK9, + 0.85%
extended its recent rally, bringing its monthly increase to almost 4%. Gold
GCM9, -0.91%
installed lower while the US dollar index
DXY, + 0.75%
climb
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