Mid-Week Market Minute 11.23.22

Stocks Rise, Durable Goods Report Wednesday

Stocks were higher in the holiday-shortened trading week as investors digested earnings along with comments from Federal Reserve officials. Recently, there’s been a shift in rhetoric from certain officials at the central bank, which point toward the possibility of slower rate hikes going forward. In the meantime, interest rates have stabilized for the time being, with the yield on the 2-year and 10-year Treasury notes trading around 4.51% and 3.75%, respectively, mid-week.

On the data front, the Richmond Fed Manufacturing Index came in lower than expected in November and the prices paid and wages components softened as well, supporting the encouraging inflation data in recent weeks. In commodities, oil prices rebounded after falling sharply following reports Saudi Arabia will continue to cut production and may take further steps to balance the market. Just last week, West Texas Intermediate crude oil hit its lowest level in over a month as a rising number of new COVID-19 cases in China added to concerns over demand from the world’s largest importer of oil.

For the rest of the week, investors will get a look at the durable goods report on Wednesday followed by the release of November’s FOMC meeting minutes. Durable goods orders are expected to rise by 0.4% in October, reflecting strength in commercial aircraft orders along with moderate growth in shipments of core capital goods.

Source: GSAM, CNBC, JPMorgan

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