US STOCKS-Wall St rallies after broad sell-off; Micron shines

Triumph

21/12/2023 15:15

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        * 
      Micron jumps on upbeat quarterly revenue forecast
    

        * 
      Boeing up after report of China clearing 737 Max
deliveries
    

        * 
      US weekly jobless ticks up; Q3 GDP growth trimmed
    

        * 
      Indexes up: Dow 0.79%, S&P 0.82%, Nasdaq 0.99%
    

  
 (Updated at 9:46 a.m./1446 GMT)
    By Johann M  Cherian and Shristi  Achar A
       Dec 21 (Reuters) - 
    Wall Street advanced on Thursday after recovering from a
broad sell-off in the prior session, with latest data adding to
expectations that borrowing costs could ease next year, while
chipmaker Micron advanced after giving an upbeat forecast.
  
        A Commerce Department 
    report showed
     the final gross domestic product (GDP) estimate for the
third quarter stood at 4.9%, compared with previous estimates of
5.2%.
  
        Separately, a Labor Department report showed the number
of Americans filing new claims for unemployment benefits rose
marginally last week, suggesting underlying strength in the
economy as the year winds down.
  
        "It's a mixed bag of macro data and points to weaker
economic activity ahead," said Peter Cardillo, chief market
economist at Spartan Capital Securities.
  
        "Markets are going high because yields are coming down,
but yields are coming down because the market is expecting
really weak economic activity next year and that the Fed will
cut interest rates."
  
        Yields on the benchmark 10-year U.S. treasury note
 US10YT=RR  moved lower to 3.83509%, further from multi-year
highs it scaled in October.  US/ 
        The three main indexes had ended the previous session
lower, with the benchmark S&P 500  .SPX  notching its worst day
since late September, snapping a recent rally sparked by a
surprisingly dovish tone by the Federal Reserve. 
  
        The benchmark index is nearing its record closing high
hit in early 2022 which would confirm the index had been in a
bull market since closing at the bear market floor in October
2022.
  
    Despite some push back from Federal Reserve officials,
traders still expect an 85.3% chance of at least a 25 basis
points rate cut in as early as March next year, and a 100%
chance of a rate cut in May, according to the CME FedWatch Tool.
    Meanwhile, Micron Technology  MU.O  forecast quarterly
revenue above market estimates, and its shares jumped 7.8% on
signs of a memory chip recovery in 2024 after one of the most
significant downturns in years.
    The Philadelphia SE semiconductor index  .SOX  housing chip
stocks advanced 2.0%.    
    At 9:46 a.m. ET, the Dow Jones Industrial Average  .DJI  was
up 291.20 points, or 0.79%, at 37,373.20, the S&P 500  .SPX  was
up 38.60 points, or 0.82%, at 4,736.95, and the Nasdaq Composite
 .IXIC  was up 146.11 points, or 0.99%, at 14,924.06.
        All of the S&P 500's sectors were in gains, with the
tech sector  .SPLRCT  leading with a 1.1% rise, while the
small-caps Russell 2000 index  .RUT  rose 1.2%.
    Boeing  BA.N  climbed 1.5% as the planemaker is set to
restart deliveries of its 787 Dreamliner to China within days, a
source told Reuters, a step that could pave the way for China to
also end a more than four-year freeze on deliveries of Boeing's
profit-making 737 MAX.
    U.S. electric vehicle makers like Tesla  TSLA.O , Nikola
 NKLA.O  and Lucid Group  LCID.O  added between 1% and 2.4%
after a report said the United States was considering tariff
hikes on Chinese EV manufacturers.
    Triumph Group  TGI.N  soared 31% after the aerospace
supplier said it would sell its components aftermarket business
to AAR Corp  AIR.N  for $725 million.
    Advancing issues outnumbered decliners by a 7.29-to-1 ratio
on the NYSE and by a 3.65-to-1 ratio on the Nasdaq.
    The S&P index recorded seven new 52-week highs and no new
low, while the Nasdaq recorded 27 new highs and 26 new lows.

    <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
USA-ECONOMY-JOBLESSCLAIMS interactive    https://reut.rs/346o5M4
US unemployment claims    https://tmsnrt.rs/4an54H4
    ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
 (Reporting by Johann M Cherian and Shristi Achar A in
Bengaluru; Editing by Maju Samuel)
 ((johann.mcherian@thomsonreuters.com;))