US open: Stocks mostly higher after jobs and factory readings

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Sharecast News | 18 May, 2023

Updated : 15:46

Stocks on Wall Street were mixed but regaining ground following the release of better-than-expected readings on the jobs market and factory activity.

A reduction in concern around the debt ceiling negotiations was also helping stocks.

In the background, Fed funds futures had moved higher, pricing in 37% odds of a 25 basis points rate hike to 5.25-5.5% on 14 June, following hawkish remarks from Dallas Fed chief Lorie Logan.

As at 1520 BST, the Dow Jones Industrials was dipping 0.16% or 32.69 points to 33,393.49, alongside a 0.25% or 10.28 point gain to 4,169.67 on the S&P 500.

The tech-heavy Nasdaq meanwhile was climbing 0.74% or 93.38 points to 12,595.58.

Significantly, US President Biden said he was "confident" of reaching a deal with the Republicans on the debt ceiling.

Meanwhile, on Thursday morning, Logan said she did not see enough justifications in the most recent data to justify a rate pause.

However, she did not exclude that possibility between now and then.

In other news, the US Department of Labor reported a 22,000 person drop in initial unemployment claims for the week ending on 13 May to reach 242,000 (consensus: 250,000).

Meanwhile, the Federal Reserve Bank of Philadelphia's regional factory index rose from a reading of -31.3 for April to -10.4 in May.

Existing home sales were reported as down by 3.4% month-on-month in April to reach an annual rate of 4.28m, just as expected.

On the corporate front, Walmart shares were adding 2% after the discount retailing giant lifted its outlook for adjusted earnings per share in FY 2024 from $5.90-6.05 to $6.10-6.20.

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