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Stock Market News for Nov 29, 2023

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U.S. stock closed modestly higher on Tuesday as investors struggled to extend the November rally after comments from Federal Reserve officials further raised hopes that interest rates may not be hiked further. All three major indexes ended in positive territory.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) rose 0.2% or 83.51 points to end at 35,416.98 points.

The S&P 500 gained 0.1% or 4.46 points, to close at 4,554.89 points. Consumer discretionary and real estate stocks were the best performers.

The Consumer Discretionary Select Sector SPDR (XLY) and the Real Estate Select Sector SPDR (XLRE) each gained 0.6%. Eight of the 11 sectors of the benchmark index ended in positive territory.

The tech-heavy Nasdaq advanced 0.3% or 40.73 points to finish at 14,281.76 points.

The fear-gauge CBOE Volatility Index (VIX) was up 0.82% to 13.52. A total of 10.03 billion shares were traded on Tuesday, lower than the last 20-session average of 10.41 billion. Advancers outnumbered decliners on the NYSE by a 1.24-to-1 ratio. On the Nasdaq, a 1.07-to-1 ratio favored declining issues.

Investors Digest Comments from Fed Officials

On Tuesday, Federal Reserve Governor Christopher Waller, who is believed to be one of the most hawkish members of the central bank committed, sounded dovish. Waller said that the cooling economy could help bring down inflation to the Fed’s 2% target, so it is still not clear if more interest rate hikes are required.

However, not all members are in the same boat. Another hawk, Fed governor Michelle Bowman, said that further interest hikes are still required to bring down inflation.

Investors are now awaiting comments from fed Chair Jerome Powell, who is scheduled to speak now. The mixed comments from Fed officials left investors, who struggled to extend the November rally.

The Dow, S&P 500 and Nasdaq are on track to finish this month up nearly 7.2%, 8.6% and 11.1%, respectively.

Also, cooling inflation has pushed bond yields to a three-month low after hitting a 16-year high in October. On Tuesday, the 10-year Treasury yield fell further by 5.3 basis points to end at 4.335%.

Investors are now expecting a 96% chance that the Fed will keep its benchmark policy rate unchanged in its current range of 5.25-5.5%.

On Tuesday, The Boeing Company ((BA - Free Report) ) was the biggest gainer on the Dow, increasing 1.40%. Also, shares of Nike, Inc. ((NKE - Free Report) ) rose 0.7%. Boeing has a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Economic Data

U.S. consumer confidence jumped to 102 in November from a revised 99.1 in the prior month, rebounding from a 15-month low. However, consumers are still concerned about a recession.

In other economic data released on Tuesday, the S&P CoreLogic Case-Shiller home-price index showed that home prices in the country’s 20 major cities jumped 3.9% year over year in September, for the eighth straight month to hit a record high.

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