U.S Stocks Rise, But Remain Stuck In The Red For The Week

FILE - The New York Stock Exchange on Wednesday, June 29, 2022, in New York. Stocks are opening mostly higher on Wall Street, Thursday, Aug. 25, but major indexes remain in the red for the week. (AP Photo/Julia Nikhinson, File)

NEW YORK — Stocks rose in afternoon trading on Wall Street Thursday, but major indexes remain in the red for the week.

The S&P 500 rose 0.6% as of 12:10 p.m. Eastern. The Dow Jones Industrial Average rose 38 points, or 0.1%, to 33,008 and the Nasdaq rose 0.8%.

Technology stocks and banks made solid gains. Apple rose 0.8% and Bank of America rose 1.3%.

Telehealth services providers rose after Amazon shut down its in-house telemedicine service for employees. Teladoc gained 3.2%.

Earnings updates weighed heavily on several companies. Software company Salesforce fell 5.9% and discount retailer Dollar Tree fell 10.1% after they trimmed their financial forecasts for the year.

Bond yields were edged lower. The yield on the 10-year Treasury fell to 3.08% from 3.11% late Wednesday.

The broader market has been making modest moves throughout much of the week, following a tumble on Monday that was its worst day in months. Investors are focusing on the Federal Reserve’s annual economic conference in Jackson Hole, Wyoming. It has been the setting for market-moving speeches in the past and Fed Chair Jerome Powell is scheduled to speak on Friday.

Investors are hoping that Powell will offer more clarity on the central bank’s plans for future interest rate hikes. The Fed has been raising interest rates try and slow the economy and tame the hottest inflation in four decades. Wall Street is worried that it could hit the brakes too hard and send the economy into a recession.

The U.S. economy has already contracted for two straight quarters, but an update from the government showed that it actually shrank less than economists expected during the second quarter. Two quarters of a shrinking economy is an informal sign of a recession, but pockets of the economy remain strong enough to counter some of those concerns. Consumer spending remains strong and the employment market remains robust, with low unemployment and strong hiring.

There are also some welcome signs that inflation could be easing. Gasoline prices have fallen, along with food commodity staples like wheat and corn. The government’s July report on consumer prices showed that lower gas prices essentially halted inflation, though it remains historically hot.

By DAMIAN J. TROISE - Aug 25. 2022

AP

 
 

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