Dow Jones Industrial Average was trading higher on Wednesday amid a slew of better-than-expected data. Today is the last full trading day of the week, as markets will close on Thursday and end at 1 p.m. ET on Friday.
Economically, the number of Americans claiming unemployment benefits fell more than expected last week. Initial jobless claims fell from 12,000 to 260,000 seasonally adjusted for the 7 days ending November 21, the Department of Labor said today. Economists polled by Reuters expected claims to fall to 270,000 last week.
Durable goods orders rose 3% in October, the Commerce Department said on Wednesday. Last month’s increase follows declines in September and August. This strength is due to the surge in demand in a number of categories, including commercial aircraft, machinery and computers.
The Dow Jones Industrial Average receives Goldman Jolt
U.S. stock markets, including the Dow Jones Industrial Average , will continue to move sideways in 2016, with interest rates rising faster than expected, Goldman Sachs analysts said last night.
The team of analysts led by US equity strategist David Kostin still forecasts a 10% increase in earnings to $ 120 per share in 2016 and $ 129 per share in 2017.
“The Fed’s hikes will start in December and continue steadily for several years,” they wrote in the report.
Crude oil tumbles 2%
Oil prices fell as much as 2% after some traders decided to reserve profits after yesterday’s rally to two-week highs.
WTI futures fell 78 cents to drop to $ 42.09 a barrel. Brent fell 95 cents, or 2%, to $ 45.17 a barrel, reversing gains made earlier in the session.
“In Asian times, you see profit taking,” Daniel Ang, analyst at Phillip Futures, wrote to clients.
He added, however, that “the bullish sentiment continues” and that “economic data should further support this momentum.”
Today’s drop was also supported by negative oil data. The American Petroleum Institute said US crude inventories rose 2.6 million barrels last week. Analysts were expecting an increase of 1.2 million barrels.
T-bills rise on demand for safe-haven securities
Much like the Dow Jones Industrial Average, US bond prices were also trading higher on Wednesday, pushing yields lower. Rising tensions in the Middle East have increased demand for the safe haven asset. Gains were somewhat limited by a series of encouraging economic data.
10-year Treasury yields fell to trade around 2.226%, after closing at 2.243% on Tuesday. Yields on 30-year bonds fell below 3% to trade around 2.990% after the last session closed at 3.006%.
“Following the first rate hike expected in December, 10-year Treasury bill yields are expected to end at 2.32% by year-end and reach 2.64% by year-end 2016 ”, Bronka Rzepkowski, Senior Global Strategist at Oxford Economics. , told CNBC.
The US Treasury is also expected to auction $ 29 billion in 7-year notes later Wednesday.
Dow Jones Industrial Average Last traded at 17815.36, up 0.1%.