Dow Jones, Nasdaq, and S&P Indexes Rises on Stronger Pending Home Sales Data.

Dow Jones Stocks

Dow Jones, Nasdaq, and S&P Indexes

On Wednesday, the major market averages moved upward as investors tried to break out of the range-bound trading of the previous session.

The Dow (DJI) is up 0.1%, the S&P 500 (SP500) is up 0.2%, and the Nasdaq (COMP.IND) is up 0.4%.

The focus of the recent decline is on the 100-day and 50-day MAs at 4090 and 3969, according to BofA, after the S&P was rejected at the 200-day moving average resistance.

With just one day until Jackson Hole officially began, rates increased. Both the 10-year Treasury yield (US10Y) and the 2-year yield (US2Y) increased by 5 basis points to 3.10% and 3.38%, respectively.

“It is accurate to say that no bond is now in favor in the world of DM rates. The increase in rates has been widespread, and it has been followed by a poisonous increase in implied volatility and inflation expectations based on the market “said ING. “The former reflects a weakening of government bonds’ safe-haven status, the latter show the return to chronic inflation fears.”

The data for July’s durable goods were unchanged, which was less favorable than economists’ expectations of a 0.6% increase.

“Orders for durable goods went flat in July,” according to Wells Fargo, “and while a better-than-expected performance in core capital goods shipments may be a short-run positive for GDP, a worsening in orders including outright decreases in key categories implies slower growth ahead.”

Pending home sales numbers for July came in stronger than anticipated at -1% compared to the forecasted -4%.

In a report, Pantheon Macroeconomics stated: “Following the decline in mortgage demand brought on by rising rates, pending home sales have now dropped 27% from their previous peak in October. Despite this, the demand for mortgages seems to be stabilizing now that interest rates are not rising. Accordingly, our forecast for August based on the available weekly data is mostly unchanged.”

Following news that the store had secured a credit deal, Bed, Bath & Beyond saw the biggest increase among actively traded companies.

Featured Image:  Megapixl @Panteleev83

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