We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
U.S. stock markets closed sharply higher on Tuesday following soft inflation data. Market participants remained hopeful that the Fed may not opt for further hike in interest rate. Strong earnings results also boosted investors’ confidence on risky assets like equities. All three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) surged 1.4% or 489.83 points to close at 34,827.70. Notably, 25 components of the 30-stock index ended in positive territory, while 5 ended in negative zone.
The tech-heavy Nasdaq Composite finished at 14,094.38, jumping 2.4% or 326.64 points due to strong performance of large-cap technology stocks. The tech-laden index closed above the crucial technical barrier 14,000 for the first time since Sep 5.
The S&P 500 climbed 1.9% to finish at 4,495.70. The broad-market index recorder its best daily performance since April. Moreover, in intraday trading, the index briefly traded above its key psychological barrier of 4,500.
All 11 broad sectors of the benchmark ended in positive territory. The Consumer Discretionary Select Sector SPDR (XLY), the Utilities Select Sector SPDR (XLU), the Real Estate Select Sector SPDR (XLRE) and the Materials Select Sector SPDR (XLB) advanced 3.4%, 4%, 5.4% and 3%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 4.1% to 14.16. A total of 12.62 billion shares were traded on Tuesday, lower than the last 20-session average of 11.09 billion. Advancers outnumbered decliners on the NYSE by a 9.8-to-1 ratio. On Nasdaq, a 3.59-to-1 ratio favored advancing issues.
Weak CPI Data
The Department of Labor reported that the consumer price index (CPI) for October remained flat month-over-month, lower-than the consensus estimates of an increase of 0.1%. The index increased 0.4% in September. Year over year, CPI increased 3.2% in October, lower-than-the consensus estimate of 3.3%.
The core CPI (excluding volatile food and energy items) for October rose 0.2% month-over-month, lower-than the consensus estimates of an increase of 0.3%. The index increased 0.3% in September. Year over year, core CPI increased 4% in October, lower-than-the consensus estimate of 4.1%. The metric for September was also 4.1%. October marked the lowest year-over-year increase in core CPI since September 2021.
Market participants remained hopeful that steadily declining inflation rate coupled with recent softness in the resilient labor market will pave the way for an end of the ongoing rate hike cycle. The CME FedWatch currently shows a 94.5% probability that the Fed will keep the benchmark lending rate unchanged in December FOMC meeting. Consequently, the yield on the benchmark 10-Year U.S. Treasury Note dropped to below 4.5% form above 5% in the last week of October.
Strong Q3 Earnings Results
The Home Depot Inc. (HD - Free Report) reported third-quarter fiscal 2023 earnings of $3.81 per share, beating the Zacks Consensus Estimate of $3.76. Net sales of $37,710 million, surpassed the Zacks Consensus Estimate of $37,523 million.
Vipshop Holdings Ltd. (VIPS - Free Report) reported third-quarter fiscal 2023 earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.40. Net sales of $3,120.32 million, surpassed the Zacks Consensus Estimate of $3,080.86 million.
Image: Bigstock
Stock Market News for Nov 15, 2023
U.S. stock markets closed sharply higher on Tuesday following soft inflation data. Market participants remained hopeful that the Fed may not opt for further hike in interest rate. Strong earnings results also boosted investors’ confidence on risky assets like equities. All three major stock indexes ended in positive territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) surged 1.4% or 489.83 points to close at 34,827.70. Notably, 25 components of the 30-stock index ended in positive territory, while 5 ended in negative zone.
The tech-heavy Nasdaq Composite finished at 14,094.38, jumping 2.4% or 326.64 points due to strong performance of large-cap technology stocks. The tech-laden index closed above the crucial technical barrier 14,000 for the first time since Sep 5.
The S&P 500 climbed 1.9% to finish at 4,495.70. The broad-market index recorder its best daily performance since April. Moreover, in intraday trading, the index briefly traded above its key psychological barrier of 4,500.
All 11 broad sectors of the benchmark ended in positive territory. The Consumer Discretionary Select Sector SPDR (XLY), the Utilities Select Sector SPDR (XLU), the Real Estate Select Sector SPDR (XLRE) and the Materials Select Sector SPDR (XLB) advanced 3.4%, 4%, 5.4% and 3%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 4.1% to 14.16. A total of 12.62 billion shares were traded on Tuesday, lower than the last 20-session average of 11.09 billion. Advancers outnumbered decliners on the NYSE by a 9.8-to-1 ratio. On Nasdaq, a 3.59-to-1 ratio favored advancing issues.
Weak CPI Data
The Department of Labor reported that the consumer price index (CPI) for October remained flat month-over-month, lower-than the consensus estimates of an increase of 0.1%. The index increased 0.4% in September. Year over year, CPI increased 3.2% in October, lower-than-the consensus estimate of 3.3%.
The core CPI (excluding volatile food and energy items) for October rose 0.2% month-over-month, lower-than the consensus estimates of an increase of 0.3%. The index increased 0.3% in September. Year over year, core CPI increased 4% in October, lower-than-the consensus estimate of 4.1%. The metric for September was also 4.1%. October marked the lowest year-over-year increase in core CPI since September 2021.
Market participants remained hopeful that steadily declining inflation rate coupled with recent softness in the resilient labor market will pave the way for an end of the ongoing rate hike cycle. The CME FedWatch currently shows a 94.5% probability that the Fed will keep the benchmark lending rate unchanged in December FOMC meeting. Consequently, the yield on the benchmark 10-Year U.S. Treasury Note dropped to below 4.5% form above 5% in the last week of October.
Strong Q3 Earnings Results
The Home Depot Inc. (HD - Free Report) reported third-quarter fiscal 2023 earnings of $3.81 per share, beating the Zacks Consensus Estimate of $3.76. Net sales of $37,710 million, surpassed the Zacks Consensus Estimate of $37,523 million.
Vipshop Holdings Ltd. (VIPS - Free Report) reported third-quarter fiscal 2023 earnings of $0.46 per share, beating the Zacks Consensus Estimate of $0.40. Net sales of $3,120.32 million, surpassed the Zacks Consensus Estimate of $3,080.86 million.
Consequently, shares of The Home Depot and Vipshop Holdings surged 5.4% and 3.5%, respectively. Vipshop Holdings currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.