MARKET SNAPSHOT: U.S. Stocks Rise, But Investors Look Ahead To Monetary-policy Cues
Jobless claims rise less than expected in latest week
U.S. stocks rose early Thursday, rebounding modestly from the previous session's decline, though many traders were awaiting the highly anticipated gathering of central bankers in Jackson Hole, Wyo., before making big bets on market direction.
The Dow Jones Industrial Average rose 33 points to 21,846, a rise of 0.2%. The S&P 500 was up 4 points to 2,448, a 0.2% increase. The Nasdaq Composite Index added 15 points, or 0.2%, to 6,292.
Market participants also digested the latest economic data, which showed that jobless claims rose by 2,000 in the latest week, a smaller increase than expected.
The meeting of central bankers is likely to be the primary driver of trading, even though such key speakers as Federal Reserve Chairwoman Janet Yellen won't appear until Friday.
"You can't underestimate the importance of Jackson Hole, and this year is especially interesting," said Brian Battle, director of trading at Performance Trust Capital Partners. "Yellen's commentary will be closely watched, because investors what to know both if the Fed will be raising rates, and also the timing and the magnitude of the Fed unwinding its portfolio."
For the week, the Dow is on pace to gain 0.6%, the S&P 500 is set to add 0.8%, while the Nasdaq Composite is on track to rise 1%, a move that would end a four-week string of declines for the technology-heavy index.
Equities' recent struggle has been put down in part (http://www.marketwatch.com/story/trump-shutdown-threat-rattles-stock-market-2017-08-23) to President Donald Trump's threat late Tuesday to shut down the government if he didn't get funding for a border wall with Mexico.
"The headlines out of D.C. are looming over the stock market," Battle said. "Is there going to be a shutdown? A fight over the debt ceiling? We've heard these threats before but they seem pretty contentious this time. Plus there is the question about tax reform. If that doesn't get done, that'll take some of the air out of the market."
Words from Wyoming: The program for the Kansas City Federal Reserve Bank's symposium, titled "Fostering a Dynamic Global Economy," is set for release (https://www.kansascityfed.org/publications/research/escp) at 8 p.m. Eastern Time. The meeting runs through Saturday.
European Central Bank President Mario Draghi will be on the lineup with Yellen on Friday, and investors will watch for any hints on the path for monetary policy from both central bank chiefs.
See:Here's what investors will be watching when Draghi, Yellen speak at Jackson Hole (http://www.marketwatch.com/story/heres-what-investors-will-be-watching-when-draghi-yellen-speak-at-jackson-hole-2017-08-22)
Stock movers:Tiffany & Co.(TIF) posted second-quarter earnings of 92 cents a share (http://www.marketwatch.com/story/tiffany-co-shares-rise-after-earnings-revenue-beat-2017-08-24), beating expectations. Stock in the luxury jewelry company rose 3.5%.
Signet shares (SIG) jumped 20% after the jewelry retailer's quarterly earnings and sales beat expectations (http://www.marketwatch.com/story/signet-jewelers-shares-spike-after-earnings-beat-e-commerce-acquisition-2017-08-24).
Burlington Stores(BURL) climbed 4.9% after the discount store chain posted better-than-expected second-quarter results (http://www.marketwatch.com/story/burlington-stores-stock-surges-8-premarket-on-better-than-expected-earnings-2017-08-24) and raised its outlook for the full year.
J.M. Smucker Co. shares(SJM) fell 7.3% as the foods producer lowered its full-year outlook and its first-quarter earnings missed estimates (http://www.marketwatch.com/story/jm-smucker-shares-fall-4-premarket-after-earnings-miss-2017-08-24).
Hormel Foods Corp.'s(HRL) dropped 7.8% after the Spam maker cut its full-year earnings forecast.
Sears(SHLD) posted a narrower quarterly loss of $2.34 a share (http://www.marketwatch.com/story/sears-loss-tops-views-to-close-28-kmart-stores-2017-08-24) and said it would close 28 Kmart stores this year. Shares spiked 10.7%.
U.S.-listed shares of CRH PLC(CRG.DB) were up 3.9% after the Irish building materials company agreed to sell its Americas distribution business (http://www.marketwatch.com/story/crh-to-sell-us-distribution-unit-in-26b-deal-2017-08-24) to Beacon Roofing Supply(BECN). Beacon shares climbed 12%.
A consortium that includes Western Digital Corp.(WDC) will offer 1.9 trillion yen ($17 billion) to purchase Toshiba Corp.'s(6502.TO) memory chip business, sources told Reuters on Thursday. (https://finance.yahoo.com/news/western-digital-group-offer-1-091619106.html)
(https://finance.yahoo.com/news/western-digital-group-offer-1-091619106.html)Invesco Ltd. is reportedly closing in on a $1 billion deal (http://www.marketwatch.com/story/invesco-closes-in-on-1-billion-deal-to-buy-guggenheims-etf-business-2017-08-24) for Guggenheim Partners's ETF business. Shares of Invesco fell 1%.
Economic docket: Existing home sales in July are expected to decline to a seasonally adjusted annual rate of 5.50 million. The report from the National Association of Realtors is due at 10 a.m. Eastern.
Other markets:In Asian equities, (http://www.marketwatch.com/story/hong-kong-leads-slight-asian-market-gains-2017-08-23) Hong Kong shares finished higher while Japan's Nikkei lost ground. European equities traded modestly higher (http://www.marketwatch.com/story/european-stocks-post-cautious-gains-as-jackson-hole-day-arrives-2017-08-24).
The ICE Dollar Index was up 0.1% at 93.1940. A single bitcoin was up 2% to $4,224.05 after a upgrade to increase transaction sizes was implemented.
Oil prices (http://www.marketwatch.com/story/oil-prices-ease-with-caution-still-in-place-even-as-us-stockpiles-decline-2017-08-24) edged lower, while gold prices slipped 0.2% to $1,285.90 an ounce.
(END) Dow Jones Newswires
August 24, 2017 09:50 ET (13:50 GMT)