Wall St closes slightly higher after four days of selling

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  • BOJ policy change knocks global sentiment
  • Tesla falls 8% after brokers cut PT
  • Energy stocks lead gains on oil support
  • Indices up: Dow 0.28%, S&P 0.10%, Nasdaq 0.01%

Dec 20 (Reuters) – Wall Street closed slightly higher on Tuesday after four sessions of declines, but investors worried about weak holiday buying and rising bond yields added pressure after the surprise adjustment. of the Bank of Japan (BoJ) on monetary policy.

Fears over the Federal Reserve’s plan to continue raising US interest rates have weighed heavily on equities since their policy meeting last week.

Adding pressure was a rise in US Treasury yields after the BOJ made a surprise adjustment to its bond yield control that allows long-term interest rates to rise higher.

“The Bank of Japan news has moved the bond market and continues to have an impact,” said Chris Zaccarelli, Chief Investment Officer, Independent Advisor Alliance, Charlotte, NC.

Investors were also concerned about the current quarterly earnings season and holiday shopping.

“We came into this with some pretty reasonable expectations, but retailers are having to make big sales,” said Carol Schleif, deputy director of investments at the BMO family office in Minneapolis, Minn., noting that consumers this year are turning to ” services and events – vacation tickets and restaurant gift certificates and things like that – unlike another sweater or another purse.”

Schleif noted that investors are cautious after a volatile year in equities, with the S&P on course for its biggest annual decline since the 2008 financial crisis.

“People have had problems with them all year and they’re not confident enough to want to intervene,” she said.

“That’s what leads to this kind of push me pull you market, where it’s down a little bit and it’s really hard for any segment of the investing public to want to spin a narrative that they would put a bunch of money behind.”

The Dow Jones Industrial Average (.DJI) rose 92.2 points, or 0.28%, to 32,849.74, the S&P 500 (.SPX) gained 3.96 points, or 0.10%, to 3,821.62 and the Nasdaq Composite (.IXIC) added 1.08 points, or 0.01%, to 10,547.11.

Among the top 11 sectors in the S&P 500, the energy index (.SPNY) gained the most, ending up 1.52% as crude oil prices rose.

A trader works on the trading floor of the New York Stock Exchange (NYSE) in New York City, USA, on December 14, 2022. REUTERS/Andrew Kelly

Of the four sectors that fell, consumer discretionary (.SPLRCD) was the weakest, ending up 1.13%.

The Dow Jones Transport (.DJT) average closed down 1.3% after underperforming the broader market throughout the session, following JPMorgan’s bearish survey of transportation companies.

FedEx Corp (FDX.N) closed down 2.6% ahead of its quarterly report. But shares of the delivery company, which spooked the entire market in September by pulling its financial forecast, lasted more than 3% in volatile aftermarket after its fiscal second-quarter report and 2023 guidance.

In fixed income, US Treasury prices fell after the BOJ shock move, with the benchmark 10-year Treasury yield rising to a three-week high of 3.71%.

Also on Tuesday, data showed that US single-family home construction fell to a 2-and-a-half-year low in November and future building permits plummeted as higher mortgage rates continued to depress US market activity. real estate market.

General Mills Inc (GIS.N) stock fell 4.6% after quarterly sales at its high-margin pet business took a hit as major retailers cut inventory, overshadowing a rise in its profits for the year. and sales forecast.

Tesla Inc (TSLA.O) stock fell 8% after at least three brokerages cut the electric vehicle maker’s price target on growing concerns about weak demand and the risk of Chief Executive Elon Musk’s struggles in the future. Twitter.

Wells Fargo & Co (WFC.N) fell 2% after US regulators fined the lender $3.7 billion, citing widespread mismanagement of auto loans, mortgages and deposit accounts.

Advancing issues outpaced declining issues on the NYSE by a ratio of 1.12 to 1; on Nasdaq, a ratio of 1.06 to 1 favored investors.

S&P 500 posted 1 new 52-week high and 14 new lows; the Nasdaq Composite recorded 64 new highs and 399 new lows.

On US exchanges, 10.52 billion shares changed hands, compared with an average of 11.15 billion over the past 20 trading days.

Shubham Batra, Johann M Cherian and Sruthi Shankar, reporting in Bengaluru; Edited by Maju Samuel, Anil D’Silva and David Gregorio

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