Today’s stock market opened on a positive note on Wall Street, driven by favorable updates from several U.S. companies, including General Motors (NYSE:GM). In the early stages of Wednesday’s trading, the S&P 500 rose by 0.7%, the Nasdaq composite gained 0.9%, and the Dow Jones Industrial Average increased by 80 points. General Motors experienced a notable surge of over 10% following the announcement of an increased dividend and assurance that it could absorb the costs associated with its new labor contract. Additionally, tech companies showed strength, with NetApp jumping 15% after surpassing analysts’ earnings forecasts for the latest quarter and raising its outlook for the year. Treasury yields were lower during this period.
Despite a gloomy global economic forecast, Wall Street appeared poised for gains on Wednesday. Futures for the Dow Jones Industrial Average increased by 0.4%, and S&P 500 futures rose by 0.5% before the opening bell. A report from the Organization for Economic Cooperation and Development (OECD) projecting a slowdown in global economic growth in 2024 did not significantly impact the market. The OECD estimated a growth rate of 2.7%, down from an expected 2.9% in the current year, citing the anticipated deceleration of the U.S. and Chinese economies as key factors.
While acknowledging the potential risks of persistently high inflation and geopolitical conflicts, the OECD expressed optimism that recessions could be avoided in most regions. The upcoming OPEC meeting and the release of October data on the Fed’s preferred measure of inflation are awaited. The Federal Reserve’s December meeting will provide updates on its interest rate policy, with hopes for a “soft landing” for the economy.
In premarket trading, General Motors saw a 9.2% increase after announcing a dividend raise, despite a $1.1 billion pretax earnings hit this year due to a six-week strike by autoworkers. On the flip side, discount retailer Dollar Tree experienced a 1% drop before the bell, missing Wall Street’s third-quarter sales and profit targets.
European shares displayed mixed results, with France’s CAC 40 rising by 0.5%, Germany’s DAX increasing by 1.1%, and Britain’s FTSE 100 remaining unchanged. In Asia, Japan’s Nikkei 225 declined by 0.3%, Australia’s S&P/ASX 200 gained 0.3%, South Korea’s Kospi shed nearly 0.1%, Hong Kong’s Hang Seng dropped 2.1%, and the Shanghai Composite fell by 0.6%.
Meituan’s Hong Kong-traded shares fell by 12.2% after forecasting a revenue decline in the current quarter, while China Evergrande and Sino-Ocean Group Holding faced declines following legal and financial concerns.
Oil prices rose ahead of the OPEC meeting, with U.S. crude reaching $77.71 a barrel, up $1.30, and Brent crude adding $1.12 to reach $82.59 a barrel.
In the bond market, the 10-year Treasury yield fell to 4.27% early Wednesday, down from 4.33% late Tuesday, impacting the dollar, which fell to 147.45 Japanese yen. The euro also saw a decline, falling to $1.0986 from $1.0992.
On Tuesday, the S&P 500 edged up 0.1%, with November poised to be its strongest monthly gain of the year. The Dow Jones Industrial Average rose by 0.2%, and the Nasdaq composite eked out a 0.3% gain.
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