USA stocks rose modestly on Tuesday, as gains in the tech sector helped buoy the Nasdaq to a record intraday high and solid housing market data provided more evidence the economy may be picking up momentum.
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Various officials, including Vice Chairman Stanley Fischer, have hinted that a rate hike in the coming months was possible.
The Nasdaq hit a record intraday high on Tuesday, with the overall gain in US stocks led by technology and financial companies, as investors weighed the prospect of an interest rate hike this year.
Federal Reserve Chair Janet Yellen’s speech on Friday at the annual symposium in Jackson Hole, Wyoming will be followed closely as investors listen to hear if she endorses the comments made by the other Fed officials of rate hikes in September.
At 9:38 a.m. ET the Dow Jones industrial average .DJI was up 93.14 points, or 0.5 percent, at 18,622.56.
Data on Tuesday showed new USA single-family home sales unexpectedly rose in July, reaching their highest level in almost nine years as demand increased broadly, brightening the housing market outlook.
Frankfurt’s DAX 30 stocks index added 1.0 percent and the Paris CAC 40 gained 0.7 percent, while London’s main FTSE-100 index rose 0.6 percent. This week’s lower price action suggests that investors may be hedging their bets for a hawkish tone although an imminent rate hike doesn’t appear to be in the cards.
The S&P 500 .SPX was up 6.64 points, or 0.3 percent, at 2,189.28.
The dollar index, which tracks the USA unit against a basket of six major rivals, was up 0.1 percent at 94.593.
Surprisingly upbeat French PMI figures showed the private sector growing at its fastest in 10 months, while in Britain export orders hit a 2-year high to confound Brexit doom-mongering. The stock was chiefly responsible for the consumer staples index .SPLRCS edging lower.
Crude oil jumped over 1 percent with prices hitting under $48 a barrel.
J.M. Smucker dropped 7.6 percent after its quarterly revenue missed estimates.
The S&P 500 topped its previous record close and was just below its intraday record.
Advancing issues outnumbered decliners on the NYSE by 2,151 to 755.
Toll Brothers Inc.(TOL) slipped 1.1% in premarket trade even as the home builder reported a 58% rise in third-quarter profit (http://www.marketwatch.com/story/toll-brothers-profit-matches-views-sales-top-2016-08-23).
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The stock market has been relatively calm in recent weeks, with up and down price swings – or volatility – in the past 20 days for the benchmark Standard & Poor’s 500 stock index at its lowest level “in several decades”, according to Strategas Research Partners.
