Wednesday, December 07, 2022

Stock market rises as consumer confidence rises; Technology is rising; Vaccine Supplies Pop

The stock market climbed on Tuesday as a rise in consumer confidence and new peace talks between Russia and Ukraine caused shares to rise higher. Vaccine stocks surfaced after the Food and Drug Administration approved another round of booster shots.


The Nasdaq composite rose 1.4% and the S&P 500 rose 0.8% as technology, consumer discretionary and real estate sectors led the market. The Technology Select Sector SPDR (XLK) ETF was up 1.4%.

appeal (AAPL) rose 1.2% in heavy trading, climbing above the 176.75 buying point of a double-bottom base. The buying zone goes to 185.59.

The Dow Jones Industrial Average rose 0.5%. The small-cap Russell 2000 jumped by 2%. Volume rose on the Nasdaq and NYSE compared to the same time Monday.

US stock market overview today

Index Symbol Price Profit / Loss % Change
Dow Jones (0DJIA) 35114,97 +159.08 +0.46
S&P 500 (0S & P5) 4610,15 +34.63 +0.76
Nasdaq (0NDQC) 14565,95 +211.05 +1.47
Russell 2000 (IWM) 210.38 +4.19 +2.03
IBD 50 (FFTY) 39.76 +0.02 +0.05
Last updated: 13:58 ET 29/3/2022

Consumer confidence rises, yields fall

Consumer confidence in the US rose for the first time this year as a strong labor market and waning concerns about Covid-19 counteracted concerns about rising inflation and the war in Ukraine.

The Conference Council’s consumer confidence index rose to 107.2 in March from a revised 105.7 in February. The index is in line with the 107.5 consensus forecast of economists polled by The Wall Street Journal.

“Consumer confidence is still supported by strong growth in employment and is therefore holding up remarkably well despite geopolitical uncertainties and inflation expectations over the next 12 months,” said Lynn Franco, the Conference Council’s senior director of economic indicators.

Meanwhile, the 10-year Treasury bond yield fell by 6 basis points to 2.41%. While a lower return is a positive sign for investors in the short term, many investors and economists remain concerned about the flattening trend in the yield curve, which could predict an economic slowdown.

Staffing companies also received a boost on Tuesday, as a tight labor market has meant that many businesses are looking for staffing companies to help fill their ranks. Robert Half (RHI) jumped 3.4% on Tuesday, breaking past its 120.99 buying point from a cup-with-handle formation. But the volume was weak.

True Blue (TBI) also climbed closer to a cup base entry of 33.01 and jumped 2.7% on Tuesday.

Property, vaccine shares rise

Another drop in oil prices helped the stock market prolong its progress. The price of US crude oil fell 1.7% to $ 104 a barrel after falling below $ 100 early Tuesday.

Representatives of Russia and Ukraine are meeting in Turkey today on peace talks. Previous negotiations were largely unsuccessful as the war turned more into a stalemate.

Property also rose, as a report showed that house price growth rose in January as the supply of homes for sale fell to a new low. The Real Estate Select Sector (XLRE) ETF rose 2%.

The Case-Shiller 20 City Adjusted Home Price Index rose 1.8% in January. This was an increase from the revised 1.4% increase the previous month, and it exceeded the forecasts for a 1.4% increase. The stock of homes for sale at the end of January has fallen to its lowest level on record since the National Association of Realtors began in 1999 to track the total existing home inventory.

Vaccine stocks jumped on Tuesday after the Food and Drug Administration approved another round of Covid booster shots for people 50 years and older.

It places a fourth dose of the messenger RNA shots of Pfizer (PFE), with partner BioNTech (BNTX), and Modern (MRNA) on the table for millions of people in the US People can receive the second booster four months after the first. The FDA will also allow immunosuppressed people as young as 12 to receive a fourth Pfizer shot.

Modern equities rose 3.7%. BioNTech shares rose 3.5% and Pfizer shares crawled 0.7% higher.

Stock market gains on optimistic corporate news

UnitedHealth Group (UNH) announced was obtained LHC Group (LHCG). UnitedHealth Group fell 0.8% on news that it plans to acquire LHC Group for about $ 5.4 billion in cash, or $ 170 per share. LHC shares rose 6%. LHC provides home health care that costs less than nursing homes and some other types of facilities.

Nielsen Holdings (NLSN) shot up 21% after a group led by an Elliott Management division and Brookfield Asset Management (BAM) agreed to buy the company for $ 28 a share. The deal is valued at $ 16 billion, including debt, reports The Wall Street Journal.

FedEx (FDX) rose 2.8% after the shipping giant said founder and CEO Fred Smith would retire and become executive chairman on June 1. President and Chief Operating Officer Raj Subramaniam has been named the new CEO.

Rival United Pakkiediens (UPS) broke out of a cup-with-handle base with a 222.67 buy point. The buying zone goes to 233.80.

The Innovator IBD 50 ETF (FFTY) was flat on Tuesday.

Follow Michael Molinski on Twitter @IMmolinski


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