URBN - Stocks Zoom as Investors Bet on Slowing Inflation
Stocks rose Wednesday as investors grew increasingly confident Thursday's consumer price index will show cooling inflation and signal to the Federal Reserve that previous interest rates hikes have had their intended impacts.
The Dow Jones Industrials popped 268.91 points to conclude Wednesday at 33,973.01
The S&P 500 grew 50.36 points, or 1.3%, to 3,969.81.
The NASDAQ Composite Index hiked 189.04 points, or 1.8%, to 10,931.67.
Economists polled by Dow Jones expect the CPI to show prices cooled by a modest 0.1% in December from the prior month. The forecast still calls for a 6.5% increase from the prior year. Excluding food and energy prices, economists expect the CPI for December will be 0.3% higher than the prior month and 5.7% higher than a year ago.
The tech-heavy NASDAQ enjoyed its first four-day rally since September. The index has climbed this week as investors pick up beaten-down technology stocks, which they expect to fare better if the Fed eases on its rate-hiking campaign.
Big bank quarterly results will follow on Friday, kicking off a new earnings season.
2023 has brought a relief rally so far for more risky areas of the market, such as tech, but many investors are still cautious ahead of earnings season and further expected rate hikes from the Federal Reserve.
Despite Southwest's efforts to enhance operational quality coming out of its meltdown following Winter Storm Elliot, Susquehanna Financial Group says the stock is no longer worth buying.
The firm downgraded its rating to neutral from positive, citing risks rated to operations and its order book. The firm also said canceled flights would hurt capacity and, thus, revenue.
Still, Susquehanna sees the stock gaining 11% in the next year. The stock was down 0.4% following the downgrade Wednesday.
The early returns on the winter shopping season have not been kind to all retail companies, but Bank of America remains bullish on Urban Outfitters.
One analyst reiterated her buy call on the stock on Wednesday, saying in a note to clients that the company has worked through its pandemic supply chain problems.
Bank of America also bumped up its price target on the stock to $32 per share from $30.
Shares of Urban Outfitters were trading up about 4%.
Prices for the 10-year Treasury gained ground, lowering yields to 3.53% from Tuesday's 3.61%. Treasury prices and yields move in opposite directions.
Oil prices advanced $2.48 to $77.60 U.S. a barrel.
Gold prices recovered $4.30 to $1,880.80 U.S. an ounce.
Stocks Zoom, as Investors Bet on Slowing Inflation