Stocks rose broadly in morning trading on Wall Street Wednesday following some encouraging updates from U.S. companies, including General Motors. The S&P 500 rose 0.4%, finding upward momentum after two days of mostly listless trading. The Dow Jones Industrial Average rose 44 points, or 0.1%, to 35,465 as of 10:11 a.m. Eastern. The Nasdaq gained 0.5%.
Quick Read
- Positive Morning for Wall Street: Stocks saw a broad rise in morning trading, following optimistic updates from U.S. companies, including General Motors.
- Indices Gains: The S&P 500 increased by 0.4%, while the Dow Jones Industrial Average rose 44 points (0.1%), and the Nasdaq grew by 0.5%.
- General Motors’ Surge: GM’s stock jumped 10.2% after announcing a stock buyback, dividend raise, and confidence in handling the costs of its new labor contract.
- Automotive Sector Performance: Ford and Stellantis (maker of Jeep) also saw gains, rising 3.4% and 4.5%, respectively.
- Tech Sector Success: Technology companies like NetApp, Intuit, and Workday experienced significant gains after strong financial updates and forecasts.
- Treasury Yields Decrease: Lower yields on the 10-year and 2-year Treasury notes relieved some pressure on stocks.
- Global Market Trends: European stocks rose, while Asian markets showed mixed results.
- Hormel Foods’ Decline: Hormel Foods saw a drop of 5.1% following a disappointing profit forecast.
- Encouraging U.S. Economic Data: The U.S. economy grew faster than previously estimated in the third quarter, with consumer spending remaining strong despite a slight downgrade.
- Anticipation for Inflation Data: Investors are awaiting October’s inflation data, which could influence the Federal Reserve’s interest rate policy in its December meeting.
The Associated Press has the story:
Wall Street gains ground after good updates from GM & other companies
Newslooks- NEW YORK (AP)
Stocks rose broadly in morning trading on Wall Street Wednesday following some encouraging updates from U.S. companies, including General Motors.
The S&P 500 rose 0.4%, finding upward momentum after two days of mostly listless trading. The Dow Jones Industrial Average rose 44 points, or 0.1%, to 35,465 as of 10:11 a.m. Eastern. The Nasdaq gained 0.5%.
General Motors surged 10.2%. The company announced a big stock buyback, raised its dividend and told investors it won’t have any trouble absorbing the costs of its new labor contract. GM and its rivals agreed to new contracts with the United Auto Workers and Canadian auto workers in late October following strikes that lasted more than a month.
Ford rose 3.4% and Jeep maker Stellantis rose 4.5%.
Technology companies were behind much of the gains following several strong financial updates. NetApp jumped 15% after easily beating analysts’ forecasts for earnings in its latest quarter and raising its outlook for the year. TurboTax maker Intuit rose 3.1% and software maker Workday gained 7% following encouraging results and forecasts.
Treasury yields fell, taking more pressure off of stocks. The yield on the 10-year Treasury, which influences mortgage rates, slipped to 4.27% from 4.33%. The yield on the 2-year Treasury fell sharply to 4.63% from 4.75%.
Stocks rose in Europe and were mixed in Asia.
On the losing end, Spam maker Hormel foods fell 5.1% after giving investors a weak profit forecast.
Wall Street also received an encouraging economic update. The U.S. economy grew at a brisk 5.2% annual pace from July through September, the government reported Wednesday, an upgrade from its previous estimate of 4.9%.
Consumer spending, the lifeblood of the economy, rose at a 3.6% annual rate from July through September. That’s still healthy, but a downgrade from the previous estimate of 4%. The report follows an encouraging survey on consumer confidence released Tuesday.
Investors will get another key economic update on Thursday when the government releases its October data on the Federal Reserve’s preferred measure of inflation. Economists expect that measure to continue easing, as it has been since the middle of 2022. The Federal Reserve will meet again in December to update its interest rate policy.
