SME Stock – Stocks close slightly higher after a volatile day on Wall Street | Business
The volatile day of trading on Wall Street ended on Wednesday with high stock prices, reversing many of the S & P 500’s modest pullbacks the day before.
The Benchmark Index closed at just under 0.2% after swinging between marginal gains and losses. Retailers and other businesses that rely on consumer spending have made solid profits. Communication and financial stocks also helped lift the market. The rise in the S & P 500 was curbed by a decline in healthcare, technology and other stocks.
SME stocks continued to outperform other markets, as they did all year round. Treasury yields are mostly high.
The market has been bumpy in the last few days as investors wait for additional clues about rising economic growth and inflation past the stellar corporate earnings season.
Kristina Hooper, Chief Global Market Strategist at Invesco, said:
The S & P 500 rose 7.86 points to 4,195.99. The Dow Jones Industrial Average, which turned 125 on Wednesday, rose 10.59 points (less than 0.1%) to 34,323.05. The Good Equity Index fluctuated between a 97-point rise and a 41-point slide. The Nasdaq added 80.82 points, or 0.6%, to 13,738. The Russell 2000 Index for SMEs rose 43.52 points (2%) to 2,249.27.
The S & P 500 hit a record high on May 7, but has fallen for the second straight week towards this week. This week’s index is on track for a rise of about 1%.
Investors have bid on stocks of several retailers that have provided strong quarterly report cards. Dick’s Sporting Goods surged 16.9% after reporting a surge in sales and strong earnings in the first quarter due to the resurgence of team sports. Urban Outfitters rose 10% and Abercrombie & Fitch rose 7.8% with similarly strong performance.
Retailers, hotels and cruise lines are ready to grow as more people return to normal with increased vaccination and the appearance of a pandemic receding.
The next major economic update is set for Thursday, when the Department of Commerce releases its latest GDP report for the first quarter. Economists expect a significant recovery in 2021, and results from earlier this year will give Wall Street a clearer outlook.
Analysts expect much of the increase to be tied to economic growth and digestible, but growing economies are also raising inflation concerns. Concerns are focused on stronger inflation, and governments and central banks are urging them to roll back economic stimulus and change the direction of interest rates. The Federal Reserve Board says it doesn’t think it needs to change courses yet.
Bond yields, which soared at the beginning of the year, were relatively stable. The Treasury yield for 10 years has risen from 1.56% to 1.58% since the end of Tuesday.
“Investors need to stop worrying about short-term concerns about the Fed and inflation,” Hooper said. “It really produces the many churn we see.”
Online retail giant Amazon has purchased MGM, Legally Blonde and Shark Tank, the movie and television studios behind James Bond, with the goal of filling video streaming services with more programming. With the announcement, inventory has changed little.
European markets were mixed and Asian markets were significantly higher.
Source link Stocks close slightly higher after a volatile day on Wall Street | Business