On this the eve of Jackson Hole perhaps investors feel they have now positioned themselves for the expected bad news for the selling has stopped and all three indexes rose modestly though they were all higher earlier in the session.  It was a seesaw though with especially the Dow dropping to almost zero gains four times during the day before rising again after 3 pm to a modest 59 point gain.  Also contributing to the mixed activity was Biden’s announcement of forgiveness on some student loans, a move heralded by some as a huge help to college students and criticized by other as inflationary. 

And with the S&P having now recovered about half of its losses from the June low, there is more surprising news. Several weeks ago Wall Street analysts were saying there’s never been a time in history when the S&P, having had losses in the first half, did not completely recover all those losses by year-end.  Today analysts are saying that the current 50% retracement is probably as good as it’s going to get.  Awaiting Jackson Hole and Powell’s speech on Friday, volume remains light at 8.9 billion. 

Wed  August 24, 2022  4:28 PM

Wall Street ends higher, with all eyes on Jackson Hole

By Noel Randewich and Bansari Mayur Kamdar

DJ: 32,909.59  -154.02        NAS: 12,381.30  -0.27          S&P: 4,128.73  -9.26        8/23

DJ: 32,969.23  +59.64         NAS: 12,431.53  +50.23       S&P: 4,140.77  +12.04     8/24

Aug 24 (Reuters) - Wall Street ended higher on Wednesday, lifted by gains in energy stocks and Intuit while investors awaited the U.S. Federal Reserve's Jackson Hole conference this week.  Boosting the tech-heavy Nasdaq, Intuit Inc (INTU.O)rallied almost 4% after the accounting software maker forecast upbeat fiscal 2023 revenue.  After the bell, Salesforce Inc (CRM.N) dipped 5.5% following its quarterly report. During the trading session, the business software seller had gained 2.3%.  All 11 S&P 500 sector indexes rose, led by energy (.SPNY), up 1.2%, followed by a 0.71% gain in real estate (.SPLRCR).  The S&P 500 lost ground in the previous three sessions after a summer rally was halted by growing concerns of an aggressive stance by the Fed, an energy crisis in Europe and signs of economic slowdown in China.

Investor are now focused be on the Jackson Hole symposium that begins on Thursday, with remarks from Fed Chair Jerome Powell on Friday potentially providing clues about the pace of future rate hikes and whether the central bank can achieve a "soft landing" for the economy.  "The market is biding its time to get more information on the most important things, which are inflation and the Fed's rate path," said Tom Martin, senior portfolio manager at GLOBALT Investments in Atlanta.  Traders are divided between expecting a 50-basis point hike and a 75-basis point hike by the U.S. central bank. FEDWATCH

President Joe Biden said the U.S. government will forgive $10,000 in student loans for many debt-saddled college-goers, a move that could boost support for his fellow Democrats in the November congressional elections but also may fuel inflation. read more 

 

Helped by corporate quarterly results that were not as bad as feared, the S&P 500 (.SPX) has recovered 13% from its mid-June lows. The benchmark index is set to end the year a little above its current level, according to strategists recently polled by Reuters. read more 

 

The S&P 500 climbed 0.29% to end the session at 4,140.77 points.  The Nasdaq gained 0.41% to 12,431.53 points, while Dow Jones Industrial Average rose 0.18% to 32,969.23 points. 

 

Peloton Interactive (PTON.O) surged over 20% after the stationary bike company said it would sell its products on Amazon (AMZN.O) in a bid to boost sales that have dropped following the end of pandemic lockdowns. read more  Nordstrom Inc (JWN.N) tumbled almost 20% after the retailer cut its annual revenue and profit forecasts, a sign that inflation is squeezing consumer spending on its high-end clothing and footwear. read more 

 

Advancing issues outnumbered falling ones within the S&P 500 (.AD.SPX) by a 2.5-to-one ratio.  The S&P 500 posted two new highs and 30 new lows; the Nasdaq recorded 42 new highs and 104 new lows.

Volume on U.S. exchanges was relatively light, with 8.9 billion shares traded, compared to an average of 10.9 billion shares over the previous 20 sessions.