Positive results in retail stocks rack up gains
The Dow posted gains on Tuesday, supported by a spate of mostly favourable retailer quarterly results. Dip-buying in large tech and energy after a loss the day before has been strong. Following quarterly earnings that exceeded Wall Street expectations, Dick’s Sporting Goods Inc. and Abercrombie & Fitch both saw gains of 10% and 21%.
Best Buy ended up up nearly 13%, leading a surge in retailers after raising full-year guidance and reporting quarterly results. They beat estimates on both the top and bottom lines, as a ramp-up in promotional activity boosted demand. The Dow Jones Industrial Average increased 1.2%, or 397 points, the Nasdaq increased 1.36%, and the S&P 500 increased 1.36%.
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Fed made a suggestion that the rate hikes would be slowed down at its meeting in December. However they also said that the peak rate hike would be greater than anticipated. Concerns about the Fed failing to prevent a recession or soft landing at a time when global economy is weakening have been sparked by the likelihood of higher rates for longer periods of time.
Gold closes in the green, oil stable
The price of gold is nearly unchanged on Tuesday and closed on 1,740.32 or +2.48 (+0.14%). Fed officials persistently assert that the US central bank has to tighten monetary conditions. Additionally, the Covid-19 cases in China continue to cause brittle sentiment.
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Both crude oil groups closed only 1% in the green as the OPEC+ rumors died down. Brent crude gained 91 cents, or 1%, to close at $88.36. West Texas Intermediate crude for the United States increased 91 cents, or 1.1%, to $80.95.
Dollar makes way for riskier currencies
The appetite for riskier currencies increased as investors looked past concerns over China’s COVID flare-ups. This caused the dollar to lose some of the ground it gained the previous session. Tuesday saw a general increase in the price of stocks, commodities, and riskier currencies. COVID-19 restrictions in China increased concerns about the future of the world economy.
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The euro increased 0.5% against the dollar to $1.02965, poised to end a losing streak of three sessions. Loretta Mester, president of the Federal Reserve Bank of Cleveland, reaffirmed on Tuesday that the central bank must continue to focus on bringing inflation down. Investors have the November Fed meeting minutes, which are due on Wednesday, in their sights. They will be mostly looking out for any cues regarding the direction of interest rates.
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