U.S. stocks climbed
for a third day as investors await what is widely expected to be the
first Federal Reserve interest-rate increase in almost a decade.
Leadership shifted
Wednesday as crude oil retreated and energy slumped after two sessions
out in front. Industrials paced early gains, with Honeywell
International Inc. up 4.5 percent after its 2016 earnings forecast beat
some analysts’ estimates. Homebuilders rose after housing starts were
stronger than forecasts. Equities earlier trimmed their climb as crude
extended a drop after weekly inventory data showed stockpiles remain
ample.
The Standard &
Poor’s 500 Index gained 0.2 percent to 2,047.55 at 11:48 a.m. in New
York, after rising as much as 0.8 percent. The gauge’s advance faltered
near its average price during the past 50 days. The Dow Jones Industrial
Average climbed 16.46 points, or 0.1 percent, to 17,541.37. The Nasdaq
Composite Index rose 0.2 percent. West Texas Intermediate crude futures
lost 4.4 percent after rising almost 5 percent during the two prior
sessions.
The Federal Open
Market Committee is poised to boost rates today for the first time since
2006, ending a campaign of stimulus that helped stoke what could become
the second-longest American rally on record next year. Fed officials
will announce their rate decision at 2 p.m. in Washington, and traders
are pricing in a 76 percent chance of liftoff.
Barring a shock
decision, investors are about to find out how much stocks are worth in
the absence of Fed support that has helped restore $15 trillion to share
values since 2009. History suggests two immediate consequences from
tightening: higher volatility and lower valuations, meaning earnings and
ultimately the economy are left to drive prices.
The S&P 500 fell
in seven of eight sessions, losing 5.7 percent after the Fed balked at
raising rates in September, citing a threat to global growth amid a
slowdown in China and turmoil in financial markets. By mid October,
traders priced in less than 30 percent chance of a rate increase this
year while equities headed for their strongest monthly gain since 2011.
Odds jumped to nearly 70 percent after a stronger-than-forecast October
jobs report on Nov. 6.
A report today showed
new-home construction rebounded in November, led by gains in
single-family dwellings that signal the residential real estate industry
will continue to support growth. Work began on the most stand-alone
houses since January 2008, and permits for similar projects reached an
eight-year high. A separate gauge showed manufacturing stagnated in last
month, held back by less production of durable goods such as
automobiles and metals that reflects weak global demand.
The S&P 500 capped
its first back-to-back gains in more than a month yesterday. Prospects
for the first U.S. rate increase and a deepening oil rout had sparked a
selloff in riskier assets, putting the benchmark on track for its worst
December in 13 years. The equity gauge has slipped 3.9 percent since a
May record, and is poised for its biggest annual drop since 2008.
The Chicago Board
Options Exchange Volatility Index, fell 4 percent Wednesday to 20.12,
extending its decline this week to almost 18 percent. The measure of
market turbulence known as the VIX surged 65 percent last week, the most
since a record monthly jump in August.
Seven of the S&P
500’s 10 main industries rose, with utilities up 1.7 percent and phone
companies rising 1.3 percent. Energy, materials and technology shares
lagged.
Source : Bloomnberg
0 komentar :
Post a Comment