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

Triumph

21/12/2023 17:28

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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 0.38%, S&P 0.53%, Nasdaq 0.73%
    

  
 (Updated at 12:02 p.m. ET/1702 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.
        "We have entered back into what we call a Goldilocks
scenario, a situation of rising earnings and falling inflation,"
said Steve Chappell, global head of trading systems development
for VectorVest.
  
        "So there is a reason to be cautiously optimistic. The
fear of missing out has certainly been a part of this rally at
this point." 
  
        The yield on the benchmark 10-year U.S. treasury note
 US10YT=RR  moved lower to 3.8806%, 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 82.9% 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 7.2% 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 2.3%.
    Nine of the 11 S&P 500's sectors were in the green, with the
health sector  .SPXHC  leading with a 0.8% rise, while the
small-caps Russell 2000 index  .RUT  rose 1.2%.
        "As people become less fearful about the stock market,
these are segments of the market that have been beaten up the
most. So that amounts to investors minds as opportunity,"
Chappell added on small-cap stocks.
  
    At 12:02 p.m. ET, the Dow Jones Industrial Average  .DJI 
was up 139.63 points, or 0.38%, at 37,221.63, the S&P 500  .SPX 
was up 24.91 points, or 0.53%, at 4,723.26, and the Nasdaq
Composite  .IXIC  was up 107.50 points, or 0.73%, at 14,885.44.
    Boeing  BA.N  edged up 0.3% as the planemaker is set to
restart deliveries of its 787 Dreamliner to China within days, a
source told Reuters. 
    U.S. electric vehicle makers like Tesla  TSLA.O  and Lucid
Group  LCID.O  rose 2.0% and 2.8%, respectively, after a report
said the United States was considering tariff hikes on Chinese
EV manufacturers.
    Advancing issues outnumbered decliners by a 3.19-to-1 ratio
on the NYSE and a 2.32-to-1 ratio on the Nasdaq.
    The S&P index recorded 12 new 52-week highs and no new lows,
while the Nasdaq recorded 47 new highs and 46 new lows.

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Jobless claims    https://tmsnrt.rs/3GT60FK
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 (Reporting by Johann M Cherian and Shristi Achar A in
Bengaluru; Editing by Maju Samuel)
 ((johann.mcherian@thomsonreuters.com;))