Stocks managed to post gains in light volume ahead of the long holiday weekend.
Reassuring data on the cost of living (opens in a new tab) It calmed the worries of traders, who had been jittery in December due to the Federal Reserve’s relentless hiking policy. interest (opens in a new tab). However, there are not many market participants at this time, which makes it difficult to develop an approach to what the benchmarks are doing.
This is especially true this year, considering that the the stock market will be closed (opens in a new tab) It’s Christmas Monday, which ends at the weekend in 2022.
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In general, economic data on durable goods and inflation led the session on Friday.
In the past, the sales department reported that it was a durable item (opens in a new tab) Orders fell 2.1% in November, missing economists’ forecasts of a 0.6% decline. We also saw the release of the Fed’s preferred measure of inflation known as the Price index of personal expenses (opens in a new tab) (PCE).
The latest report has shown that inflation eased in November (opens in a new tab) with a 5.5% increase in price vs. last month. This was in line with the forecasts of economists and showed a decrease in the price increase of 6.1% per month in October. Any data suggesting that the Fed has succeeded in reducing the worst inflation in four decades is generally applauded by the market, which is eager to slow the central bank’s policy. interest rate hike (opens in a new tab).
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In less obvious news, the PCE report showed the same consumer spending (opens in a new tab) It rose just 0.1% in November, down from October’s rise of 0.9%. The figure has worried at least some market participants because it may indicate a possible decrease in consumer spending.
“The personal income and expenditure report in November was close to market expectations, although consumption in nominal and real terms was relatively weak,” said Eugenio J. Alemán, chief economist at Raymond James (opens in a new tab). “The report was consistent with the weak retail sales report earlier this month, where we saw a very weak print for goods consumption and a relatively strong print for services consumption.”
At the closing bell, the blue Dow Jones Industrial Average added 0.5% to finish at 33,203, more widely S&P 500 rose 0.6% to 3,844. The tech-heavy Nasdaq Composite It rose 0.2% to 10,497.
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