MARKET SNAPSHOT: S&P 500 Extends Win Streak To 5 Sessions, Posts Record Close
25 May 2017 - 7:27AM
Dow Jones News
By Sue Chang, MarketWatch , Ryan Vlastelica
Fed minutes point to rate hike in June as expected
The S&P 500 gained ground for a fifth consecutive session
Wednesday to close at a record as minutes of the Federal Reserve's
latest policy meeting showed broad agreement on plans to begin
shrinking the central bank's balance sheet and also pointed to a
likely rate increase next month, as widely expected.
The S&P 500 rose 5.97 points, or 0.3%, to close at 2,404.39.
The Dow Jones Industrial Average also rose for a fifth straight
day, gaining 74.51 points, or 0.4%, to finish at 21,012.42, just
0.5% below its record close set on March 1. The five-day run is the
longest winning streak for both the S&P and the Dow since
February.
The Nasdaq Composite Index climbed 24.31 points, or 0.4%, to end
at 6,163.02.
The minutes of the early May meeting showed that members were in
agreement
(http://www.marketwatch.com/story/fed-minutes-show-broad-agreement-on-approach-to-start-shrinking-balance-sheet-2017-05-24-1491015)
on a general approach to unwinding the massive balance sheet built
up over the course of the asset-buying spree that was at the center
of the Fed's quantitative easing strategy. The minutes also showed
most Fed officials agreed it would "soon" be time to raise rates
again.
Read:Seeing another rate hike 'soon,' Fed outlines plan to
reduce bondholdings
(http://www.marketwatch.com/story/seeing-another-rate-hike-soon-fed-outlines-plan-to-reduce-bond-holdings-minutes-show-2017-05-24)
"The unwind in the Federal Reserve's balance sheet holds Chair
Yellen's signature gradual approach; she will not allow a quick
unwind, nor anything that surprises markets," said Quincy Krosby,
chief market strategist at Prudential Financial, in emailed
comments.
Caution had been slightly elevated after Moody's Investors
Service cut China's foreign credit rating for the first in nearly
three decades
(http://www.marketwatch.com/story/moodys-downgrades-china-rating-for-the-first-time-in-nearly-30-years-2017-05-24).
However, stocks in China erased losses and closed slightly higher,
while European stocks also shook off early weakness and traded in
positive territory.
Read:Can investors afford do shrug off China's credit downgrade?
(http://www.marketwatch.com/story/can-investors-afford-to-shrug-off-chinas-credit-downgrade-2017-05-24)
In other central bank events on Wednesday, Dallas Fed President
Rob Kaplan will participate in a moderated discussion at an event
in Toronto at 6 p.m. Eastern. Minneapolis Fed President Neel
Kashkari participates in a town hall discussion in Ashland, Wis.,
at 6:30 p.m. Eastern.
On the economic front, existing home sales fell 2.3% in April,
coming in below expectations
(http://www.marketwatch.com/story/existing-home-sales-stall-in-april-as-tight-supply-pushes-properties-to-record-low-time-on-the-market-2017-05-24)
as lean inventory constrained demand.
Stock movers: Shares of Bunge Ltd.(BG) rose 1%, extending a 17%
rally from Tuesday that came on news that commodities giant
Glencore PLC (GLEN.LN) (GLEN.LN) had approached the grain trader
about a potential takeover
(http://www.marketwatch.com/story/glencore-makes-takeover-approach-to-bunge-2017-05-24).
Nvidia Corp.(NVDA) gained 1.1% after Bloomberg reported
(https://www.bloomberg.com/news/articles/2017-05-24/softbank-said-to-take-4-billion-stake-in-u-s-chipmaker-nvidia)
that Japanese SoftBank Group Corp. (9984.TO) had amassed a $4
billion stake in the chip maker.
Intuit Inc.(INTU) soared 6.7% to a record a day after it
reported strong quarterly results
(http://www.marketwatch.com/story/intuit-finds-tax-season-success-from-uber-drivers-and-taskrabbits-2017-05-23).
Shares of Lowe's Cos.(LOW) slid 3% after the home-improvement
retailer posted quarterly sales and adjusted earnings that fell
short of Wall Street's forecasts
(http://www.marketwatch.com/story/lowes-quarterly-earnings-sales-miss-expectations-shares-slide-premarket-2017-05-24).
Tiffany & Co. (TIF) reported profit ahead of expectations,
but same-store sales unexpectedly fell, sending shares down
8.7%.
Earnings from Advance Auto Parts Inc.(AAP) missed forecasts by a
wide mark. Shares fell 5.4%.
Container Store Group Inc.(TCS) soared 33% after its earnings
showed profits doubled in the fourth fiscal quarter.
Other markets: Oil prices declined for the first time in six
sessions
(http://www.marketwatch.com/story/oil-continues-to-gain-ahead-of-opec-meeting-2017-05-24-11035054)
as traders await a meeting of
(http://www.marketwatch.com/story/oil-continues-to-gain-ahead-of-opec-meeting-2017-05-24-11035054)the
Organization of the Petroleum Exporting Countries and other major
producers on Thursday that's expected to produce an agreement to
extend output cuts.
See:4 potential outcomes for OPEC's crucial meeting
(http://www.marketwatch.com/story/4-potential-outcomes-for-opecs-crucial-meeting-2017-05-19)
Metals prices ended mostly lower
(http://www.marketwatch.com/story/gold-prices-drift-south-as-us-rate-hike-expectations-rise-2017-05-24),
with gold off 0.2% and the ICE dollar index edging down 0.2%.
--William Watts and Sara Sjolin contributed to this article.
(END) Dow Jones Newswires
May 24, 2017 17:12 ET (21:12 GMT)
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