Saturday, November 23, 2024
Stocks rose on Tuesday, but the rally that began over a month ago appears to be losing steam. The Dow Jones Industrial Average gained 84 points, or 0.2%, to 35,417. The S&P 500 rose just 0.1%, or 4 points, to 4,555. The Nasdaq Composite added 41 points, or 0.3%, to 14,282.
The muted performance of stocks comes as investors await the release of the Federal Reserve's latest economic projections and interest rate decision next week. The central bank is widely expected to raise rates by half a percentage point, but the outlook for future rate hikes remains uncertain.
Bond yields fell across the board on Tuesday, reflecting investor expectations that the Federal Reserve will slow down its pace of interest rate hikes. The two-year Treasury yield closed at 4.749%, down 11 basis points. The yield on the 20-year Treasury fell three basis points to 4.695%. The two-year/twenty-year Treasury yield spread remains negative.
Oil prices rose on Tuesday, closing at $76.40 per barrel, up $1.41. The increase in oil prices comes as investors weigh concerns about a potential global recession against supply disruptions caused by the war in Ukraine.
Gold prices soared on Tuesday, breaking through resistance at $2,019 to close at $2,041, up $29. The rally in gold prices is being fueled by concerns about inflation and economic uncertainty.
Consumer confidence came in slightly above expectations in November, according to the Conference Board. The index rose to 108.3 from 103.2 in October. The increase suggests that consumers are still feeling relatively optimistic about the economy despite rising interest rates and inflation.
Economists expect third-quarter GDP growth to come in at 4.9%, according to a survey by Bloomberg. This would represent a slowdown from the 5.7% growth rate in the second quarter, but it would still be considered a strong pace of economic expansion.
Seven public companies reported earnings yesterday, and all met or beat expectations. The strong earnings reports helped to boost investor sentiment and contributed to the gains in the stock market.
Charlie Munger, the longtime Berkshire Hathaway vice chairman and right-hand man of legendary investor Warren Buffett, died yesterday at the age of 99. Munger was a close confidant and advisor to Buffett for over 50 years, and he played a key role in the success of the company that Buffett chairs. Munger was known for his sharp wit and his value investing philosophy. He was a strong advocate for buying stocks of companies that were trading at a discount to their intrinsic value. Munger's death is a loss to the world of investing. He was a true giant in the field, and his wisdom will be missed.
