Welcome to MarketBites! Here's all you need to about yesterday's market news.
Quote of the day:
"The cultivation of the mind is as necessary as food to the body."
PORTFOLIO MANAGER COMMENTARY
U.S. markets rose on Wednesday, snapping a three-day decline, as investors awaited more clarity on the Fed’s fight against inflation. The Dow gained 0.18%, the S&P climbed 0.29%, and the Nasdaq advanced 0.41%. Energy, real estate, and financials were the S&P’s best performing sectors. Meanwhile, information technology, health care, and consumer staples lagged behind.
Cruise lines, in particular, had an outstanding day. Norwegian Cruise Line Holdings rose 8.41%, Royal Caribbean Group jumped 7.65%, and Carnival ended the day 5.35% higher. On the contrary, automotive companies had a rough trading session, with Advance Auto Parts leading the decline down at -9.62% after missing earnings and decreasing their revenue forecast.
Crude oil futures experienced another gain on Wednesday following suggestions that the OPEC+ group of major-oil producing countries might cut output.
Looking ahead, investors are keeping their eye on the Jackson Hole economic symposium, jobless claims are coming out today, and the personal consumption expenditures (PCE) price index is being released tomorrow. The Fed keeps a close eye on the PCE as it is one of their favorite measures of inflation. Fed watchers expect Jerome Powell to reinforce the central bank’s goal of squashing inflation and keeping expectations about future price gains in check.
CHART OF THE DAY
Inflation continues to be a problem in Europe as the euro is now languishing below parity with the dollar after its latest selloff. Even a hefty interest-rate hike from the European Central Bank is unlikely to rescue it, according to Bloomberg.