Stocks Gain Momentum After Recent Pullback
3:01 pm Wednesday, August 24th, 2022
The stock market had a positive disposition today, attempting to snap a three-session losing streak. Rising Treasury yields have yet to derail buying interest today. Notably, the major indices are still stuck in a narrow trading range as market participants play a waiting game ahead of Fed Chair Powell’s speech at the Jackson Hole symposium Friday, which will be hot on the heels of the July PCE Price Index release.
There was also hawkish Fed speak in the mix this morning that participants took in stride. Minneapolis Fed President Neel Kashkari (2023 FOMC voter) said he thinks the Fed needs to remain vigilant with tightening efforts, lest it run a risk of inflation expectations becoming unanchored, according to The Wall Street Journal.
Mega caps are driving this bounce with the Vanguard Mega Cap Growth ETF (MGK) up 0.4% versus a 0.3% gain in the Invesco S&P 500 Equal Weight ETF (RSP) and a 0.2% gain in the S&P 500.
Currently, seven S&P 500 sector trade in positive territory led by consumer discretionary (+0.7%). Its retail components are holding up okay despite losses in fellow retailer Nordstrom (JWN), which is not a sector component but slashed its full-year EPS guidance, saying it plans to take aggressive action in the second half of its fiscal year to clear excess inventory.
Intuit (INTU), on the other hand, is a wining standout following its earnings results and is lending support to the information technology sector (UNCH).
Oil prices are having a volatile showing. WTI crude oil futures currently trade up 0.6% to $94.30/bbl.
The 10-yr note yield is up seven basis points to 3.12% while the 2-yr note yield is up ten basis points to 3.38%.
