MARKET SNAPSHOT: Stock Market Ticks Up As Investors Await Fed Minutes
May 24 2017 - 1:01PM
Dow Jones News
By Sara Sjolin, MarketWatch , Ryan Vlastelica
S&P, Dow industrials could post longest win streak since
February
U.S. stocks traded slightly higher on Wednesday, though activity
was subdued ahead of minutes from the Federal Reserve's latest
meeting, which could quell doubts about a June interest-rate
increase.
The Dow Jones Industrial Average rose 33 points to 20,970, a
gain of 0.2%. The S&P 500 was up 2 points, or 0.1%, to 2,400.
The Nasdaq Composite Index was up 13 points to 6,152, up 0.2%.
All three indexes are near records. If the Dow and S&P
extend their advance to a fifth straight session, it would mark
their longest winning streak since February.
Financial market participants are pricing in an 83% probability
of a rate in June, according to CME's FedWatch tool
(http://www.cmegroup.com/trading/interest-rates/countdown-to-fomc.html).
The Fed minutes are due at 2 p.m. Eastern Time.
Read:Fed minutes may quell doubt about a June interest-rate hike
(http://www.marketwatch.com/story/fed-minutes-may-quell-fresh-doubts-about-a-june-rate-hike-2017-05-19)
Minutes from the Federal Open Market Committee's May 2-3 meeting
"will provide the largest event risk amid a quiet data calendar,"
Prashant Newnaha, rates strategist at TD Securities, said in a
note.
"We look for the minutes to reinforce the relatively hawkish
policy statement with references to a robust labor market and a
solid growth outlook," he said.
"We will also be on alert for any discussion of changes to the
Fed's reinvestment policy, the discussion around which has grown
more prominent in recent months, and market pricing for a June rate
hike," he said.
Caution was also elevated on Wednesday after Moody's Investors
Service cut China's foreign credit rating for the first in nearly
three decades
(http://www.marketwatch.com/story/moodys-downgrades-china-rating-for-the-first-time-in-nearly-30-years-2017-05-24).
However, stocks in China erased losses and closed slightly higher,
while European stocks also shook off early weakness and traded in
positive territory.
In other central bank events on Wednesday, Dallas Fed President
Rob Kaplan will participate in a moderated discussion at the C.D.
House Institute Annual dinner in Toronto, Canada at 6 p.m.
Eastern.
Minneapolis Fed President Neel Kashkari participates in a town
hall discussion in Ashland, Wis., at 6:30 p.m. Eastern.
In the latest economic data, existing home sales fell 2.3% in
April, coming in below expectations
(http://www.marketwatch.com/story/existing-home-sales-stall-in-april-as-tight-supply-pushes-properties-to-record-low-time-on-the-market-2017-05-24)
as lean inventory constrained demand.
See:
Stock movers: Shares of Bunge Ltd.(BG) rose 1.1%, extending a
17% rally on Tuesday that came on news that commodities giant
Glencore PLC (GLEN.LN) (GLEN.LN) had approached the grain trader
about a potential takeover
(http://www.marketwatch.com/story/glencore-makes-takeover-approach-to-bunge-2017-05-24).
Nvidia Corp.(NVDA) was up 1.3% after Bloomberg reported
(https://www.bloomberg.com/news/articles/2017-05-24/softbank-said-to-take-4-billion-stake-in-u-s-chipmaker-nvidia)
that Japanese SoftBank Group Corp. (9984.TO) had amassed a $4
billion stake in the chip maker.
Intuit Inc.(INTU) soared 7.4% to a record a day after it
reported strong quarterly results
(http://www.marketwatch.com/story/intuit-finds-tax-season-success-from-uber-drivers-and-taskrabbits-2017-05-23).
Shares of Lowe's Cos.(LOW) slid 3.1% after the home-improvement
retailer posted quarterly sales and adjusted earnings that fell
short of Wall Street's forecasts
(http://www.marketwatch.com/story/lowes-quarterly-earnings-sales-miss-expectations-shares-slide-premarket-2017-05-24).
Tiffany & Co. (TIF) reported profit ahead of expectations,
but same-store sales unexpectedly fell, sending shares down 8%.
Earnings from Advance Auto Parts Inc.(AAP) missed forecasts by a
wide mark. Shares fell 4.3%.
Container Store Group Inc.(TCS) soared 26.5% after its earnings
out late Tuesday showed profits doubled in the fourth fiscal
quarter.
Other markets: Oil prices were little changed
(http://www.marketwatch.com/story/oil-continues-to-gain-ahead-of-opec-meeting-2017-05-24-11035054)
as traders await a meeting of
(http://www.marketwatch.com/story/oil-continues-to-gain-ahead-of-opec-meeting-2017-05-24-11035054)the
Organization of the Petroleum Exporting Countries and other major
producers on Thursday that's expected to produce an agreement to
extend output cuts.
See:4 potential outcomes for OPEC's crucial meeting
(http://www.marketwatch.com/story/4-potential-outcomes-for-opecs-crucial-meeting-2017-05-19)
Metals prices were mostly lower
(http://www.marketwatch.com/story/gold-prices-drift-south-as-us-rate-hike-expectations-rise-2017-05-24),
with gold off 0.4%.
The ICE dollar index was up less than 0.1% at 97.43.
(END) Dow Jones Newswires
May 24, 2017 12:46 ET (16:46 GMT)
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