US stocks rise ahead of testimony from Fed Chair Powell

Tuesday, June 22, 2021 | Damian J. Troise, AP Business Writer


Flags adorn the facade of the New York Stock Exchange, Wednesday, June 16, 2021. Stocks are opening mostly lower on Wall Street Tuesday, June 22 as traders wait for more clues on the Federal Reserve's thinking on inflation. (AP Photo/Richard Drew)

Stocks are rising on Wall Street Tuesday as traders wait for more clues on the Federal Reserve’s thinking on inflation.

The S&P 500 index rose 0.4% as of 1:14 p.m. Eastern. The Dow Jones Industrial Average rose 21 points, or 0.1%, to 33,901 and the Nasdaq rose 0.5%.

Technology companies were the biggest gainers. A mix of companies that rely on direct consumer spending, including Home Depot and Best Buy, were also making solid gains. Real estate companies and utilities edged lower.

Stocks rebounded on Wall Street Monday, clawing back most of their sharp loss from last week, as the initial jolt passes from the Federal Reserve’s reminder that it will eventually offer less help for markets. The S&P 500 recovered nearly three-quarters of its worst weekly loss since February.

Investors have been closely watching any signal that could shed more light on just how high inflation could rise and for how long, from commodity prices to wages and economic reports.

“What investors are going to have to do is just buckle up,” said Katie Nixon, chief investment officer at Northern Trust Wealth Management. “The data is going to be very noisy; we could get some numbers that create some anxiety."

Nixon said rising inflation will likely be temporary as the economy continues its recovery, as the Fed has been saying, but it could be a bumpy summer as far as inflation signals and concerns. The key, she said, is to stay calm and not overreact to any one signal or piece of data.

Fed Chair Jerome Powell will testify before Congress later Tuesday on the central bank’s response to the coronavirus pandemic. Investors remain focused on the issue of inflation and will be listening closely to Powell's comments on this issue. The U.S. economy is recovering from the pandemic quickly as vaccines have rolled out, but it’s caused prices for basic materials to rise noticeably in recent months.

In prepared remarks, Powell reaffirmed the Fed’s position that while inflation has accelerated recently, the Fed expect the effects to be transitory.

Powell’s remarks follow a meeting of the Fed policymakers last week, when central bank officials signaled they were prepared to raise rates earlier than they had previously suggested.

Bond prices didn't move much. The yield on the 10-year Treasury note remained at 1.48%.

GameStop rose 4.9% after the company announced it had raised $1 billion in selling new shares to investors. Financing announcements helped lift shares for several other companies. Tupperware jumped 12.2% after announcing a $250 million stock buyback and software company Splunk rose 9.8% after announcing a $1 billion investment from Silver Lake.

The price of Bitcoin continued to fall, adding to its losses from the previous couple of weeks. The digital currency was trading at about $32,000, according to Coindesk. Earlier in the day, it went below $30,000, about where it started the year. It traded above $60,000 in mid-April.

Should you invest $1,000 in Northern Trust right now?

Before you consider Northern Trust, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Northern Trust wasn't on the list.

While Northern Trust currently has a "Hold" rating among analysts, top-rated analysts believe these five stocks are better buys.

View The 5 Stocks Here

 


Companies Mentioned in This Article

CompanyMarketRank™Current PricePrice ChangeDividend YieldP/E RatioConsensus RatingConsensus Price Target
The Home Depot (HD)2.7$328.19flat2.01%23.94Buy$329.92
Northern Trust (NTRS)2.2$112.85flat2.48%19.26Hold$109.07
Compare These Stocks  Add These Stocks to My Watchlist 

MarketBeat - Stock Market News and Research Tools logo

MarketBeat empowers individual investors to make better trading decisions by providing real-time financial data and objective market analysis. Whether you’re looking for analyst ratings, corporate buybacks, dividends, earnings, economic reports, financials, insider trades, IPOs, SEC filings or stock splits, MarketBeat has the objective information you need to analyze any stock. Learn more about MarketBeat.

MarketBeat is accredited by the Better Business Bureau

© American Consumer News, LLC dba MarketBeat® 2010-2021. All rights reserved.
326 E 8th St #105, Sioux Falls, SD 57103 | U.S. Based Support Team at [email protected] | (844) 978-6257
MarketBeat does not provide personalized financial advice and does not issue recommendations or offers to buy stock or sell any security.

Our Accessibility Statement | Terms of Service | Do Not Sell My Information

© 2021 Market data provided is at least 10-minutes delayed and hosted by Barchart Solutions. Information is provided 'as-is' and solely for informational purposes, not for trading purposes or advice, and is delayed. To see all exchange delays and terms of use please see disclaimer. Fundamental company data provided by Zacks Investment Research.