US stocks mixed; weekly gains likely on post-Fed rally; flash PMI due
Investing.com — U.S. stocks traded in a mixed manner Friday, with some investors banking gains after the post-Fed rally on optimism that the U.S. central bank will be able to engineer a soft landing next year.
By 09:35 ET (14:35 GMT), the was marginally lower, index traded 4 points, or 0.1%, lower, while the climbed 32 points, or 0.2%.
The main Wall Street indices are still all on pace for their seventh-consecutive positive week – which would be their best weekly winning streak since 2019.
Fed stance breeds soft landing optimism
This positivity has been boosted by the Federal Reserve signaling that it would start to cut interest rates from more than two-decade highs next year. Stronger-than-anticipated data on Thursday, along with cooling annual figures earlier in the week, have also buoyed hopes that the U.S. economy will recover strongly in 2024.
New York Fed President John Williams told CNBC in an interview that talk of rate cuts is still “premature” and the central bank could still tighten policy if needed. Although this caused some investors to pare bets on U.S. interest-rate reductions next year, sentiment remains generally positive.
There is more economic data to study Friday, with U.S. and production both edging higher in November on a monthly basis, rebounding after the previous month’s sharp loses. However, most eyes will be on the data for December, due after the opening bell.
The equivalent data in the eurozone, released earlier Friday, showed that the downturn in business activity surprisingly deepened in December, indicating the bloc’s economy is almost certainly in recession.
Costco benefits from demand for cheaper goods
In corporate news, Costco Wholesale (NASDAQ:) stock rose 2.8% after the membership-only retailer posted quarterly sales and profit that beat projections after the close Thursday, helped by demand for cheaper groceries. It also rolled out a special dividend to shareholders.
Costco has moved to keep prices low in a bid to entice budget-conscious shoppers wary of overspending during a time of elevated inflation and interest rates.
Crude on course for weekly gain
Oil prices edged higher Friday, on course for the first weekly gain in two months, boosted by increased optimism over demand growth next year as well as a weaker dollar.
By 14:35 ET, the futures traded 0.2% higher at $71.75 a barrel, while the contract climbed 0.3% to $76.84 a barrel.
Both benchmarks are on track for gains of around 1% this week, breaking a run of seven consecutive losing weeks.
The dollar fell to a four-month low on Thursday after the Federal Reserve signaled lower borrowing costs next year, helping confidence that a stronger U.S. economy will boost crude demand in 2024.
The added to this belief by lifting its oil demand forecast for 2024, citing an improvement in the outlook for U.S. demand and lower oil prices.
A weak dollar also makes dollar-denominated oil cheaper for foreign purchasers.
Additionally, rose 0.2% to $2,049.70/oz, while traded 0.6% lower at 1.0924.
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Investing.com — U.S. stocks traded in a mixed manner Friday, with some investors banking gains after the post-Fed rally on optimism that the U.S. central bank will be able to engineer a soft landing next year.
By 09:35 ET (14:35 GMT), the was marginally lower, index traded 4 points, or 0.1%, lower, while the climbed 32 points, or 0.2%.
The main Wall Street indices are still all on pace for their seventh-consecutive positive week – which would be their best weekly winning streak since 2019.
Fed stance breeds soft landing optimism
This positivity has been boosted by the Federal Reserve signaling that it would start to cut interest rates from more than two-decade highs next year. Stronger-than-anticipated data on Thursday, along with cooling annual figures earlier in the week, have also buoyed hopes that the U.S. economy will recover strongly in 2024.
New York Fed President John Williams told CNBC in an interview that talk of rate cuts is still “premature” and the central bank could still tighten policy if needed. Although this caused some investors to pare bets on U.S. interest-rate reductions next year, sentiment remains generally positive.
There is more economic data to study Friday, with U.S. and production both edging higher in November on a monthly basis, rebounding after the previous month’s sharp loses. However, most eyes will be on the data for December, due after the opening bell.
The equivalent data in the eurozone, released earlier Friday, showed that the downturn in business activity surprisingly deepened in December, indicating the bloc’s economy is almost certainly in recession.
Costco benefits from demand for cheaper goods
In corporate news, Costco Wholesale (NASDAQ:) stock rose 2.8% after the membership-only retailer posted quarterly sales and profit that beat projections after the close Thursday, helped by demand for cheaper groceries. It also rolled out a special dividend to shareholders.
Costco has moved to keep prices low in a bid to entice budget-conscious shoppers wary of overspending during a time of elevated inflation and interest rates.
Crude on course for weekly gain
Oil prices edged higher Friday, on course for the first weekly gain in two months, boosted by increased optimism over demand growth next year as well as a weaker dollar.
By 14:35 ET, the futures traded 0.2% higher at $71.75 a barrel, while the contract climbed 0.3% to $76.84 a barrel.
Both benchmarks are on track for gains of around 1% this week, breaking a run of seven consecutive losing weeks.
The dollar fell to a four-month low on Thursday after the Federal Reserve signaled lower borrowing costs next year, helping confidence that a stronger U.S. economy will boost crude demand in 2024.
The added to this belief by lifting its oil demand forecast for 2024, citing an improvement in the outlook for U.S. demand and lower oil prices.
A weak dollar also makes dollar-denominated oil cheaper for foreign purchasers.
Additionally, rose 0.2% to $2,049.70/oz, while traded 0.6% lower at 1.0924.