U.S. stock indexes continued to rise on Thursday, with the S&P 500 on track to end a four-day losing streak.
The S&P 500 rose 0.6% in intraday trading after paring small early losses. A further decline would put them on their longest losing streak since late October, when their big run to the record began.
As of 11 a.m. ET, the Dow Jones Industrial Average was up 294 points, or 0.8%, and the Nasdaq Composite was up 0.5%.
Elevance Health rose 5.5% after the insurer raised its full-year profit forecast. Homebuilder DR Houghton rose 3.5% after reporting profit and sales for the latest quarter that beat analysts’ expectations.
That helped offset a 2.8% decline at Equifax, which reported lower-than-expected earnings in its latest quarter. High interest rates are putting pressure on the company’s mortgage credit research business.
Stock markets have generally struggled recently as bond market yields have risen. The pressure has increased as investors have given up hope that the U.S. Federal Reserve will cut interest rates significantly this year.
Yields rose slightly on Thursday after a flurry of reports suggested the U.S. economy remained stronger than expected.
One report says the number of workers is decreasing. applied for unemployment benefits Last week’s performance exceeded economists’ expectations. This is the latest sign that the job market remains remarkably strong despite high interest rates.
Another report said manufacturing growth in the mid-Atlantic region accelerated sharply, even though economists had predicted a contraction.
The third report states: Sale of previously occupied US homes The decline last month was less than economists had expected.
Fed officials recently said they may keep interest rates on hold following similar data and a series of reports showing that inflation this year remains higher than expected. high for a while.
The disappointment comes after the Fed had earlier indicated it could cut interest rates three times this year.
But Fed officials have been adamant that they want to see inflation falling toward their 2% target before lowering the central bank’s key interest rate from its highest level since 2001. Lower interest rates would energize the economy and financial markets, but could also allow for further rate cuts. Fuel for reaccelerating inflation.
Traders currently expect only one or two rate cuts this year, lower than expectations for rate cuts, according to CME Group data. 6 or more At the beginning of the year.
In the bond market, the 10-year Treasury yield rose to 4.63% from 4.59% late Wednesday. The yield on the two-year Treasury note, which is more closely tied to Fed expectations, rose to 4.98% from 4.94%.
The boom expected on Wall Street is expected to help keep interest rates high, which could also fuel strong earnings growth. Companies will need to display such strength to justify the rise in stock prices since the fall and set records in the process.
Genuine parts rose 12.2% after the auto and industrial replacement parts retailer reported profits beat analysts’ expectations for the latest quarter, despite weaker sales growth. It was the biggest increase in the S&P 500 index. The company also raised its full-year profit forecast range.
Comerica rose 3.6% after analysts said the bank offered a better outlook for 2024 profit trends than had been feared.
Affected airline Alaska Airlines explosion in flight The company took a $162 million hit in the most recent quarter after grounding its fleet of Boeing 737 Max planes in January to make door plugs for Boeing aircraft, but expects a better-than-expected profit this quarter. Ta.The company’s stock price rose 6.2%
Las Vegas Sands fell 6.8% despite reporting better-than-expected earnings. Analysts said investors may be concerned about the competition the company faces in Macau.
In overseas stock markets, indexes rose in Asia before moving modestly across much of Europe. South Korea’s Kospi rose 2%, leading the region.
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AP Business Writers Matt Ott and Elaine Kurtenbach contributed.
