The major averages are still expected to post their largest monthly gain in 2023 even if the S&P 500 and the Dow Jones Industrial Average closed Wednesday close to the flat line.
To close at 35,430.42, the 30-stock Dow was up 13.44 points, or 0.04%. The Nasdaq Composite fell by 0.16% to 14,258.49, while the S&P 500 dipped by 0.09% to close at 4,550.58.
November’s rebound has brought the major market benchmarks closer to the summertime 2023 highs. In 2023, the Dow would need to rise by almost 0.5% to hit a new closing high. While the Nasdaq is approximately 0.7% away from a year-end high, the S&P 500 is about 0.8% away.
NetApp saw a 14.6% increase on strong earnings, while General Motors saw a 9.4% increase in shares following the company’s announcement of a $10 billion repurchase and dividend hike. After Elliott Investment Management invested $1 billion in the petroleum business Phillips 66, the stock of the company surged 3.6%.
Supporting stock prices was the 10-year Treasury note’s yield, which dropped below 4.3% for the first time since September.
The gross domestic product expanded at a faster-than-expected annual rate of 5.2% in the third quarter, according to data released on Wednesday. Increases in nonresidential constructions and changes to government spending were the main sources of the surge.
According to historical patterns, we probably need to digest our gains, so Sam Stovall, chief investment strategist at CFRA Research, said he would not be shocked if that happened in the first few days of December.
“But at the same time, December is traditionally the finest month of the year in terms of frequency of progress, or batting average,” he continued. “Therefore, I wouldn’t be shocked if the markets continue to go in the right direction through year’s end.”
The S&P 500 may hit 4,600 before the end of this year, according to LPL Financial Chief Technical Strategist Adam Turnquist.
Source (CNBC)
