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Fed minutes due at 2:00 p.m. ET
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Palo Alto Networks rises on upbeat forecast
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CoStar slumps as talks to buy Move from News Corp halt
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Indexes up: Dow 0.08%, S&P 0.04%, Nasdaq 0.10%
(Updates prices, details)
By Johann M Cherian
Feb 22 (Reuters) - Wall Street's main indexes edged up
on Wednesday, a day after their worst performance of the year,
as investors awaited minutes from the Federal Reserve's policy
meeting for fresh clues on the trajectory of interest rates.
U.S. stocks shed more than 2% on Tuesday after a rebound in
business activity in February stoked fears of interest rates
staying higher for longer.
Minutes from the Fed's Jan. 31-Feb. 1 meeting, due at 2:00
p.m. ET, are expected to detail the breadth of debate at the
central bank about the rate hike path.
"The obvious focus today is on the Fed minutes which would
indicate that the inflation fight is still not over and that
there are areas that are showing pockets of strength with the
consumer still resilient," said Peter Cardillo, chief market
economist at Spartan Capital Securities.
"We expect all indicators to point to the Fed remaining
hawkish in its inflation fight."
St. Louis Fed President James Bullard said the U.S. central
bank needs to get inflation toward its 2% goal this year to
avoid a repeat of the 1970s, when rates had to be repeatedly
ratcheted up.
New York Fed President John Williams, a voting member of the
rate-setting committee this year, is scheduled to speak later in
the day.
Following a market rout in 2022, the three major indexes
logged monthly gains in January as investors hoped the Fed would
pause its rate hikes and perhaps pivot around the year-end.
However, stocks have had a volatile run in February as traders priced in higher interest rates for longer, considering inflation remains elevated in the face of a sturdy economy. Money market participants expect rates to peak at 5.35% by July and stay around those levels till the end of 2023. At 10:02 a.m. ET, the Dow Jones Industrial Average was up 25.09 points, or 0.08%, at 33,154.68, the S&P 500 was up 1.41 points, or 0.04%, at 3,998.75, and the Nasdaq Composite was up 11.20 points, or 0.10%, at 11,503.50. Six of the major S&P 500 sectors gained, with consumer discretionary stocks adding 0.4%. A Reuters poll analysts expect the S&P 500 index to advance 5% by the end of the year, but high interest rates and inflation have led many strategists to predict a correction within the next three months. Growth names like Tesla Inc , Nvidia Corp , Qualcomm Inc and Amazon.com Inc edged higher as the yield on 10-year U.S. Treasury notes slid from multi-month highs. Palo Alto Networks Inc rose 11.9% after the cybersecurity company raised its annual profit forecast. CoStar Group dropped 6.2% as the online real estate marketplace provider said it was no longer in talks to buy Realtor.com-owner Move Inc from News Corp and forecast disappointing first-quarter revenue. U.S.-listed shares of Baidu Inc advanced 3.4% on a fourth-quarter revenue beat and a new share repurchase plan.
Advancing issues outnumbered decliners by a 2.10-to-1 ratio on the NYSE and by a 1.47-to-1 ratio on the Nasdaq. The S&P index recorded three new 52-week highs and one new low, while the Nasdaq recorded 13 new highs and 56 new lows. (Reporting by Johann M Cherian and Medha Singh in Bengaluru; Editing by Anil D'Silva and Arun Koyyur)
