Wall Street starts day higher on robust data and bargain-shopping
|Major equity indexes in the U.S. started the day higher on Tuesday amid stronger-than-expected regional manufacturing index data and bargain-hunting.
According to the data released by the Federal Reserve Bank of Philadelphia, the diffusion index for current general activity at the firm level rose 13 points to 30.7, its best level in four months. Moreover, Richmond Fed's composite index remained unchanged at 14 in August, surpassing the market estimate of 11.
Moreover, investors are looking to start buying again. In fact, the S&P 500 index lost more than 2% in the last two weeks. On the other hand, the pressure seems to have eased off ahead of this week's important Jackson Hole Symposium.
"The market is in a little bit of a wait-and-see mode as we go into Jackson Hole at the end of the week. A lot of people are waiting to see what Yellen has to say, especially with regard to inflation and how that might signal the Fed's thinking on the next interest rate hike, if we can still expect something for December," Lindsey Bell, investment strategist at CFRA Research in New York, told Reuters.
As of writing, the Dow Jones Industrial Average was up 132.78 points, or 0.62%, at 21,807.23, the S&P 500 was adding 13.71 points, or 0.65%, at 2,444.00, and the Nasdaq Composite was gaining 54.24 points, or 0.87%, at 6,267.37.
Headlines from the U.S. session:
- Richmond Fed: Service sector firms report improved activity in August
- Richmond Fed: Composite index remained at 14 in August
- U.S. house prices rise 1.6% in second quarter
- Philly Fed: Firm-level general activity index rose to its highest reading in 4 months
- N Korean diplomat: US-S Korea military exercises are an "aggressive war scenario"
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