Stocks opened slightly higher after a deluge of U.S. economic data that was rosier than expected, including an upward revision to third-quarter economic growth, with Wall Street trading volumes noticeably thinner ahead of the Thanksgiving Day holiday Thursday, and little new information about the ongoing U.S.-China trade war.
What are major indexes doing?
The Dow Jones Industrial Average DJIA, -0.10% opened about 11.5 points, less than 0.1%, higher, at 28,133.21. The S&P 500 SPX, +0.11% rose 4 points at the open, up 0.1% to 3,144.6. The Nasdaq COMP, +0.30% opened at 8,669.59, up about 22 points or 0.3%.
U.S. financial markets will be closed Thursday for Thanksgiving Day and will have an abbreviated trading schedule on Friday.
Read: When do markets close for Thanksgiving?
On Tuesday, the Dow DJIA, -0.10% rose 55.21 points, or 0.2%, to end at 28,121.68, while the S&P 500 SPX, +0.11% advanced 6.88 points, or 0.2%, to finish at 3,140.52. The Nasdaq COMP, +0.30% closed at 8,647.93, a gain of 15.44 points, or 0.2%. The performance marked the 10th record close of the month for all three major indexes.
What’s driving the market?
The positive tone for equities this week has been attributed in large part to upbeat expectations around trade. President Donald Trump on Tuesday said U.S.-China negotiations were in the “final throes,” while China’s Commerce Ministry said Vice Premier Liu He, the country’s top trade negotiator, spoke with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin.
But some analysts worry investors have gotten carried away, leaving the stock market vulnerable to a pullback in the case of another trade-related setback, or even if an agreement is reached in the near term.
See: Beware stock-market ‘FOMO’ as Wall Street churns out record highs, says long-term bull
“Looking ahead, extra caution may be warranted. With markets having broken new records again and again on signals that this phase one deal is drawing closer, it’s fruitful to ask how much upside – if any – there’s still in store once that agreement is officially completed,” said Marios Hadjikyriacos, investment analyst at XM, in a note.
“Is a phase one deal practically priced in by now, and are we therefore looking at a potential ‘buy the rumor sell the fact’ reaction once it’s wrapped up?” he asked.
Also read: Investors have already priced in a U.S. - China trade deal, according to these indicators
Investors were also wading through a heavy round of U.S. economic data Wednesday, including a revised estimate of third-quarter GDP that showed the U.S. economy expanded at a 2.1% annual pace versus a previous estimate of 1.9%.
Separately, the number of people who applied for first-time unemployment benefits fell sharply in the week before Thanksgiving, putting claims back near historic lows. Initial claims declined 15,000 to 213,000 in the week ended Nov. 23, the Labor Department said, though many economists caution against reading too much into any one week’s worth of claims data around this time of year.
Also, orders for durable goods rose 0.6% in October, the government said, defying forecasts for a 1.1% drop, though most of the gain was tied to defense-related goods such as jet fighters and ships.
The November Chicago-area purchasing managers index is due at 9:45 a.m. Eastern, while October personal income and spending data is up for release at 10 a.m. Eastern. A pending home sales index for October is also due at that time, while the Fed’s “Beige Book” compilation of anecdotal economic information from across the country is set for release at 2 p.m. Eastern.
Which companies are in focus?
Deere & Co. DE, -2.95% shares fell 5% after the farm-equipment maker early Wednesday issued a profit warning for fiscal 2020 that it said reflected uncertainty in its equipment business.
Shares of Dell Technologies Inc. DELL, -5.25% were off nearly 5% after the PC manufacturer cut its revenue guidance late Tuesday and cited a shortage of chips from Intel Corp. INTC, -1.07%.
Shares of VMware Inc. VMW, -0.77% were in focus after the software company reported better than expected earnings Tuesday evening, while swallowing former partners Pivotal Software and Carbon Black. Shares were up 3% in early action.
Shares of HP Inc. HPQ, -1.17% were little changed in early trading, after the computing giant reported a modest bump in fourth-quarter revenue, while offering improved earnings guidance.
Box Inc. BOX, +10.39% shares surged more than 6%, after the enterprise-software company late Tuesday reported stronger-than-expected quarterly revenue.
Shares of Hudson’s Bay Co., HBC, +13.14% the parent company of Saks Fifth Avenue, fell 1% pre-market after reports Catalyst Capital Group had offered C$11 per share to acquire the company.
How are other markets trading?
U.S. Treasury yields rose after the better-than-expected U.S. economic data early Wednesday, with the benchmark 10-year yield TMUBMUSD10Y, +0.89% up to 1.77%.
Gold prices fell, with December contracts GCZ19, -0.45% off $6.00 or 0.4% at $1,454.30 an ounce.
The U.S. dollar was firmer against a basket of currency rivals, as measured by the ICE US Dollar DXY, +0.17%
Oil prices edged higher Wednesday, on a path for a fifth gain out of six sessions, as cautious optimism for a trade pact between the U.S. and China has propped up commodities prices and sent stock markets to records. West Texas Intermediate crude futures for January delivery CLF20, +0.03% were up 6 cents, or 0.1%, at $58.47 a barrel on the New York Mercantile Exchange. January Brent crude BRNF20, +0.11% , the global benchmark, gained 9 cents, or 0.1%, at $64.36 a barrel on ICE Futures Europe.
Meanwhile, the Stoxx Europe 600 SXXP, +0.34% was up 0.3% 409.76.
In China overnight Wednesday, the CSI 300 Index 000300, -1.34% ticked down 16 points, 0.4%. Japan’s Nikkei 225 NIK, +0.28% rose 0.3%, and Hong Kong’s Hang Seng Index HSI, +0.15% rose 0.2%.
https://www.marketwatch.com/story/dow-futures-point-slightly-higher-after-another-round-of-stock-market-records-2019-11-27
2019-11-27 13:57:00Z
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