Wednesday’s stock gains kept the major averages on course for a significant increase in November.
It was a 0.2% gain, or around 85 points, on the Dow Jones Industrial Average. Both the Nasdaq Composite and the S&P 500 saw minor increases of 0.1% and 0.2%, respectively.
With the announcement of a $10 billion repurchase and dividend increase, General Motors shares surged by roughly 9.3%, while NetApp’s shares surged by 15% due to better-than-expected profits. Elliott Investment Management acquired a $1 billion position in Phillips 66, causing the oil company’s stock to rise 3.8%.
This was the first time since September that the yield on the 10-year Treasury note traded below 4.3%. Stocks received some boost from the rate reduction.
The third quarter’s GDP increased faster than anticipated, with an annualised growth rate of 5.2%, according to figures released on Wednesday. The increase was mostly the result of changes made to government expenditure and investments made in nonresidential buildings.
“I believe that at this point, the market is just focusing on the longer-term trend in inflation, which is clearly declining, as the Fed has acknowledged. The potential for a Santa Claus rally is expanding, according to LPL Financial Chief Technical Strategist Adam Turnquist. “We don’t have a significant overstock. We’ll see if we can push the S&P 500 through 4,600 as I believe there is still more room for participation in the rise. That will be the crucial level to keep an eye on.
Fed funds futures pricing indicates a possibility that the central bank may lower rates as early as next spring, which has traders confident that the Fed’s cycle of rate hikes is finished.
Source (CNBC)
