Shares rise as indices move towards weekly gains

U.S. stocks rose on Friday morning as the S&P 500 headed for the end of a three-week losing streak as investors digested recent assurances from Federal Reserve officials that they were committed to reducing inflation.

The S&P 500 is up about 1%, setting its first weekly improvement since late May and indicating its first day improvement. The Dove was up 250 points, or 0.9%, while the Nasdaq was up nearly 1% from the opening bell. The key averages retained gains even after a while Meticulously pays attention to consumer sentiments As Americans continued to struggle with high inflation, the new record was revised to a lesser extent.

Major U.S. averages traded higher this week, but eventually rose as investors considered the current economic impact of the central bank’s moves to reduce rising prices. Central Bank Chairman Jerome Powell created his post More explicit approval A recession this week was “certainly a possibility” – although not a “projected effect” – the central bank raised interest rates further this year.

“Investors really want the chair to understand that inflation is a significant problem and it’s really good to deal with it in the long run,” said Diane Jaffie, TCW Group’s Group Managing Director and Senior Portfolio Manager. Yahoo Finance Live said on Thursday. “So I think investors are going to do whatever the Fed takes.”

However, Powell’s approval of the current recession risks has increased Warning signals From a Series Wall Street companies have recently raised their own forecasts that the probability of a near-term recession. Powell’s insistence on the central bank Commitment to reduce inflation “unconditional” It also recommended that the central bank not stop raising rates at the first signs of a recession.

The healthcare and utilities sectors lagged far behind in the S&P 500, while defensive stocks were seen to be more flexible this week as the energy and commodities sectors each moved towards weekly losses. West Texas Intermediate crude oil futures moved closer to $ 106 a barrel and its third straight weekly loss and its first monthly loss since November.

Treasury yields rose steadily across the curve after renewed recession concerns. The benchmark yield rose to more than 3.10% from 3.31% at the beginning of the week.

New York, New York – June 14: Traders work on the New York Stock Exchange (NYSE) platform on June 14, 2022 in New York City. Following a fall of over 800 points on Monday, the Dow rose in morning trade, sending markets into bearish territory for fear of a possible recession. (Photo by Spencer Flat / Getty Images)

On the move

  • FedEx (FDX) Shares of the shipping company rose a Full year forecast When it met profit expectations for the fourth quarter of the fiscal year, it surpassed Wall Street estimates. According to Bloomberg, FedEx returns between $ 22.50 and $ 24.50 a year, compared to the $ 22.36 level seen by analysts. FedEx CEO Customer Brie Carere noted in the company’s revenue call on Thursday that they expect consumer shipping volumes to come under some pressure from business next year as consumer spending “tilts from product to service”.

  • Zendesk’s (Jen) After that the shares went up The Wall Street Journal reported The software company is nearing a deal with a group of buying companies including Helman & Friedman and Fermira. According to the Wall Street Journal, the private-equity acquisition will be confirmed in the coming days as negotiations progress.

  • Carmax (KMX) The stock then advanced The used vehicle seller released the first quarter results That exceeded expectations. According to Bloomberg data, earnings per share of $ 9.31 billion are higher than estimates at $ 1.51 per share and $ 8.99 billion. Used used car retail sales fell 11% from a year earlier, however, Carmex said, adding that “as a result of the stimulus paid in the previous year, widespread inflationary pressures, including vehicle control challenges, are declining; consumer confidence.”

Emily McCormick is a Yahoo Finance correspondent. Follow her on Twitter.

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