Breaking News
Investing Pro 0
🚨 Our Pro Data Reveals the True Winner of Earnings Season Access Data

Wall St closes sharply higher on hopes of abating Fed

Economy Oct 24, 2022 07:20PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 17, 2022. REUTERS/Brendan McDermid
 
AAPL
+2.44%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
PDD
-3.98%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
JD
-2.83%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
GOOG
-3.29%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
IXIC
-1.59%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
TSLA
+0.91%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Stephen Culp

NEW YORK (Reuters) - U.S. stocks advanced on Monday, extending last week's gains as signs of economic softness suggested the effects of the Fed's aggressive policy aimed at cooling the economy, thereby curbing decades-high inflation, are beginning to take root.

All three major U.S. stock indexes gained momentum throughout the first session of a week jam-packed with high profile corporate earnings and crucial economic data.

A report from S&P Global (NYSE:SPGI) showed a contraction in business activity this month, offering a hint that the Federal Reserve's barrage of steep interest rate hikes are having their desired effect, raising hopes that the central bank could begin slowing the pace of increases to the Fed funds target rate.

"It’s a sign the economy is slowing down and what the Fed is doing is working," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia. "They may be achieving their goal and we might be approaching the fourth quarter of rate hikes, to use an football analogy."

The Dow Jones Industrial Average rose 417.06 points, or 1.34%, to 31,499.62, the S&P 500 gained 44.59 points, or 1.19%, to 3,797.34 and the Nasdaq Composite added 92.90 points, or 0.86%, to 10,952.61.

Among the 11 major sectors in the S&P 500, nine closed green, with healthcare enjoying the largest percentage gain. Materials and real estate ended the session in negative territory.

Tesla (NASDAQ:TSLA) Inc shares slid 1.5% after the electric automaker cut prices for its Model 3 and Model Y cars by as much as 9% in China, signaling softening demand in the world's largest auto market.

U.S.-listed shares of Chinese companies such as Pinduoduo (NASDAQ:PDD), JD (NASDAQ:JD).com and Baidu Inc (NASDAQ:BIDU) plunged between 12% and 25% as President Xi Jinping introduced the new Politburo Standing Committee stacked with loyalists.

"The news coming out of China makes you think there’s going to be a firmer if not antagonistic China in our future," Tuz added. "But it’s too early to see how it’s going to play out as far as where you invest in the future."

Third quarter earnings season shifts into overdrive this week. So far, nearly one-fifth of the companies in the S&P 500 have reported. Of those, 74.7% have delivered consensus-beating results, according to Refinitiv data.

Analysts expect S&P 500 earnings growth of 3.0%, on aggregate, down from 4.5% at the beginning of the month, per Refinitiv.

Results from a slew of heavy-hitting tech and tech-adjacent companies are likely to dominate the earnings chatter this week.

Microsoft Corp (NASDAQ:MSFT) and Alphabet (NASDAQ:GOOGL) Inc following on Tuesday. On Wednesday, Apple Inc (NASDAQ:AAPL) and Meta Platforms Inc step up to the plate, with Amazon.com (NASDAQ:AMZN) wrapping up the FAANGs on Thursday.

High-rolling industrials are also expected to post earnings this week, including United Parcel Service (NYSE:UPS), Boeing (NYSE:BA) Co, Ford Motor (NYSE:F) Co, 3M Co, General Motors Co (NYSE:GM), Chevron (NYSE:CVX) and Exxon Mobil (NYSE:XOM).

Advancing issues outnumbered declining ones on the NYSE by a 1.36-to-1 ratio; on Nasdaq, a 1.03-to-1 ratio favored advancers.

The S&P 500 posted 21 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 73 new highs and 331 new lows.

Volume on U.S. exchanges was 11.80 billion shares, compared with the 11.56 billion average for the full session over the last 20 trading days.

Wall St closes sharply higher on hopes of abating Fed
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (23)
Kerry Ditto
Kerry Ditto Oct 25, 2022 1:59AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it was not sharply higher. it was measly tick higher. it was jumping up and down like a chicken with its head cutoff
Ron Burgundy
Ron Burgundy Oct 25, 2022 12:13AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Lies, fake democratic pump for mid terms
Casador Del Oso
Casador Del Oso Oct 24, 2022 5:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I thought JP said that the Fed's mission was to lower inflation even if it causes economic growth to slow. So why are investors expecting the Fed to slow the pace of rate increases if economic growth slows? Investors should only expect the Fed to slow the pace of rate increases if inflation decreases.
First Last
First Last Oct 24, 2022 5:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The Fed is willing to raise rate to stabilize/lower inflation even if it causes economic growth to slow  or even go negative A BIT.  There is a limit.
Brad Albright
Brad Albright Oct 24, 2022 5:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Good point, Casador.
Marcelino Stockhold
Marcelino Stockhold Oct 24, 2022 5:30PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Its just fake news until resistance and first is abaut 3800 aka. now. If rejected then news are abaut bullish Fed etc.. Just bots nowdays.
Ale Viajero
Ale Viajero Oct 24, 2022 2:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
its impossible to have a healthy bull market with 10% inflation. the whole market will still correct another 25%.. this is a bull trap and im not buying..
First Last
First Last Oct 24, 2022 2:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Check out inflation & stock market around 1980.
Matt Kay
Matt Kay Oct 24, 2022 2:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
not just inflation, 60% of americans live paycheck to paycheck. murica is going to implode
First Last
First Last Oct 24, 2022 2:50PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Matt Kay   It was 78% in Aug 2017, according to CareerBuilder:  "78 percent of U.S. workers live paycheck to paycheck to make ends meet".
Mark Westland
Mark Westland Oct 24, 2022 2:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
News wire bulletin: Nuclear war has begun. Chinese Markets collapse. U.K needs 500 billion dollar bailout. People choosing between food and heat.FED says they will cut rates early next year. MARKET up 2000 points on bullish FED
Eduardo Zamora
Eduardo Zamora Oct 24, 2022 2:38PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
todos ponerse a comprar
Stan Smith
Stan Smith Oct 24, 2022 2:25PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hilarious, we can see that Wall St doesn't give a hoot about the US economy and Main St., but they certainly care about their free lunches provided by the FED
Dave Jones
Dave Jones Oct 24, 2022 2:18PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
wall street rises as wall street rises. If Fed raises rates they will kill the economy. If Fed doesn't raise rates they will kill the economy.
Casador Del Oso
Casador Del Oso Oct 24, 2022 1:45PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Shrinking business activity with continuing high inflation. Hiking interest rates can only be effective against inflation if fiscal spending is greatly reduced. This will never happen with the current regime.
First Last
First Last Oct 24, 2022 1:45PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Nor with the previous regime.
Casador Del Oso
Casador Del Oso Oct 24, 2022 1:45PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Now is the only thing that's real.
First Last
First Last Oct 24, 2022 1:45PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Now, Russia is really aggressing Ukraine and weaponizing energy/food exports, causing the current high inflation.
Oct 24, 2022 1:45PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You have no clue wtf youre talking about.
Mohammad Abdullah
Mohammad Abdullah Oct 24, 2022 1:44PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
funny. Interest rates stay above 4% over the year. Slow interest rates increase or fast. stock market pump and dumb
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email