The US stock market pared gains in afternoon trade on Tuesday. The indices slipped after it was reported on Twitter that two rockets hit a city in Poland.
The Nasdaq Composite was up 2.5% midday but pared its gain to 0.6% by 1:40 p.m. ET. The S&P 500’s previous 1.5% gain was almost entirely gone.
The S&P 500 is approaching the 200-day moving average. The line was a resistance level for the index mainly in April and August. Watch as the S&P handles the next test of the line, which is still trending down.
The 4,000 mark is another important benchmark for the S&P 500. There, the index encountered resistance on Friday and Monday. While edging past it today, the index was below 4,000 in afternoon trade.
The Dow Jones Industrial Average returned 0.5%.
The indices went down after a report on the Faytuk’s News Twitter account said two rockets hit the town of Przewodow in Poland on the border with Ukraine. According to the report, two people were killed.
There was no confirmation from US news organizations. That The Wall Street Journal reports previously that Russian missiles hit parts of Ukraine. Oil prices jumped on the news.
Walmart, Home Depot report earnings
Dow Jones Component Walmart (WMT) up and then gained 7% Exceed sales and profit estimates in the front market. The world’s top-selling retailer saw same-store sales rise 8.2% and also raised guidance. According to Dow Jones Market Data, Walmart surpassed its previous best day, July 7, 2020, when it rose 6.7%.
Small-cap Russell 2000 is up 2.1%.
Lincoln Electric (LECO) breaks out of a cup without a handle, but the volume of the manufacturer of welding systems is small. The buy point is at 148.60.
Volume rose on the NYSE and Nasdaq compared to the same time on Monday.
In other good news for the economy, the Producer Price Index (PPI) rose 8% on an annualized basis in October and was up 0.2% mom. Both readings were smaller than expected by economists. Core wholesale prices, which exclude food and energy, rose 6.7% on a yearly basis, according to the , and were flat since September Bureau of Labor Statistics.
The report provides further evidence that companies are losing pricing power in a cooling economy, says Bill Adams, chief economist at Comerica Bank.
“But even after the good news from the PPI inflation report, the Fed is likely to adopt a fairly hawkish tone in its decision next month,” Adams said. “Residential heating bills will be significantly higher this winter than last, which may be behind the rise in consumer inflation expectations reported in the New York Fed survey released yesterday. Inflation expectations in the University of Michigan survey have also risen higher over the past two months, according to reports.”
The yield on the 10-year government bond fell 6 basis points to 3.8% in afternoon trade.
Stock market gets a boost from Chinese stocks
Chinese stocks contributed to the rally in US stocks.
President Joe Biden and Chinese leader Xi Jinping are meeting in Indonesia in hopes of improving ailing ties between the two countries. The initial The reaction on both sides was optimistic.
The Innovator IBD 50 ETF (FFTY) rose 1% after previously underperforming the stock market.
Flex LNG (FLNG) exceeded earnings and sales expectations given strong demand in the liquefied natural gas market. Still, the stock slipped more than 7% in a big way. Flex LNG is still forming cup bottom with a 37.09 purchase point.
Chips also boost the stock market
lattice semiconductor (LSCC) led the IBD 50 with a 6.7% jump to its highest price since January. Susquehanna increased the price target from 72 to 75.
The Philadelphia Semiconductor Index gained almost 4%.
On the other side lithium producer Lively (LTHM) slipped 7% on strong volume. Other lithium stocks also fell.
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