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Wall Street gains on inflation data, but rocky on geopolitics

Published 11/15/2022, 06:51 AM
Updated 11/15/2022, 06:51 PM
© Reuters. A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., November 11, 2022. REUTERS/Andrew Kelly

© Reuters. A trader works on the trading floor at the New York Stock Exchange (NYSE) in Manhattan, New York City, U.S., November 11, 2022. REUTERS/Andrew Kelly

By Lewis Krauskopf, Amruta Khandekar and Ankika Biswas

(Reuters) - Wall Street's main indexes gained on Tuesday, shaking off an unconfirmed report of Russian missiles crossing into Poland that sparked volatility, as investors seized on softer-than-expected inflation data that raised hopes of a pullback in rate hikes by the U.S. Federal Reserve.

Equities were boosted by Tuesday's inflation report that showed producer prices rising 8% in the 12 months through October against an estimated 8.3% rise.

The gains built on a rally that was kicked off late last week by a cooler-than-expected report on consumer prices.

"The market has been driven by the inflation number that came out a little bit lower than expected and confirmed last week's number to some degree that we may have rounded the corner on inflation," said Peter Tuz, president of Chase Investment Counsel in Charlottesville, Virginia.

The market was "a little bit more volatile this afternoon as news stories came out about the Russian missile landing in Poland," Tuz said.

The Dow Jones Industrial Average rose 56.22 points, or 0.17%, to 33,592.92, the S&P 500 gained 34.48 points, or 0.87%, to 3,991.73 and the Nasdaq Composite added 162.19 points, or 1.45%, to 11,358.41.

Two people were killed in an explosion in Przewodow, a village in eastern Poland near the border with Ukraine, firefighters said as NATO allies investigated reports that the blast resulted from Russian missiles.

The Associated Press earlier cited a senior U.S. intelligence official as saying the blast was due to Russian missiles crossing into Poland. But the Pentagon said it could not confirm that account.

Stocks pulled back around mid-day after the report, with the Dow turning negative, before they steadied.

"The decline was triggered by reports of a Russian missile landing in Poland," said Steve Sosnick, chief strategist at Interactive Brokers (NASDAQ:IBKR). "This could develop into something far worse, but right now markets are nervous, not panicked."

Shares of Walmart (NYSE:WMT) Inc jumped 6.5% after the top U.S. retailer lifted its annual sales and profit forecasts, benefiting from a steady demand for groceries despite higher prices.

Shares of other retailers, including Target Corp (NYSE:TGT) and Costco (NASDAQ:COST), also rose following Walmart's report. Target, which is due to report on Wednesday, rose 3.9%, while Costco gained 3.3%.

Home Depot (NYSE:HD) shares rose 1.6% after the home improvement chain's results showed it tapped higher prices to override a drop in customer transactions for the third quarter.

Advancing issues outnumbered declining ones on the NYSE by a 3.25-to-1 ratio; on Nasdaq, a 2.01-to-1 ratio favored advancers.

© Reuters. The Wall Street entrance to the New York Stock Exchange (NYSE) is seen in New York City, U.S., November 15, 2022. REUTERS/Brendan McDermid

The S&P 500 posted 5 new 52-week highs and no new lows; the Nasdaq Composite recorded 85 new highs and 76 new lows.

About 13.1 billion shares changed hands in U.S. exchanges, compared with the 12.2 billion daily average over the last 20 sessions.

Latest comments

Again big drama started
Again big drama started
8% isn't even close to what the Fed has stated as their endpoint. We're now just 8 months into rate hikes. You think the Fed is going to pivot?? At best, they will lower the INCREASE to 50 bps. These markets are either totally manipulated, algos are way off, or dreamers are pushing the markets higher. The higher they go now, the bigger the flush in 2023
Literally postioned their bets… sent a rocket in and made 10X The price of the rocket from yuat dip and bounce lol
All in short 5000 eow easy
The dead 25 cat bounce.
cpi or ppi does not matter. worsening pce eould matter and fed powell's determination to be vocker-like matter. he will continue to jack up, saying pivot is premature. powell probably is the only hope for gop in 2024 election.
J Powell and the Fed are wrong
maybe, but they're driving the bus
285 QQQ see
Jumps off a cliff....
1 russian cruise missile landed in poland, await fear & market crash
 twitter wolski_jaros its a fresh info, media didnt catch up yet
 You can see it on USD/PLN jump.
Right near the Polish border Ukraine.  2 dead.  Shouldn't escalate much, esp. if Russia don't try to escalate it.  Russian & US forces clashed in Syria w/ more deaths.
biggest market comedy in the universe
mkt looks going negative at close.
Normally I would think how unusual. Not anymore.
this is what bear markets look like....
Still +0.8% in green
Biggest investment JOKE in the world.
This is what an artificially inseminated market looks like. Go find something to do while you wait for the algos to move us higher tomorrow morning.
The market is an artificial construct.  No point whining about it not being natural.
jumping
Is the cat dead? And is the cat jumping?
not even 2% growth for a decade is depressing
No offense, but so are you
oooh you made my *****wet with that one
depression is already here
Era of money printing is over. it means recession or depression is already underway.
Unfortunately you're probably right
It's not over as long as human population and assets keep growing.
90% of stocks are owed by those in the top10% of wealth
Owed to whom?
what your not supposed to drink the bong water sir
demon drop coming
stock market going up because the like recession or depression coming. housing looks like ghost town already.
QQQ 285 incoming
ppi weakened tad tickdown simply means recession or depression has begun.
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