The First Slice for Tuesday, September 20, 2022

U.S. stocks found their footing in the final hour of trading on Monday, after flipping between gains and losses, as investors prepared for a Federal Reserve meeting that’s expected to deliver another large interest-rate hike and shed further light on the central bank’s plans for monetary policy.

  • The Dow finished up +197.26 or +0.64%
  • The S&P 500 closed up +26.56 or +0.69%
  • The Nasdaq finished up +86.62 or +0.76%

Stocks found upward momentum in the final hour of trading on Monday, shaking off last week’s losses, with the market still focused on this week’s two-day meeting of the Fed’s policy-setting Federal Open Market Committee, which ends on Wednesday. A rate hike of three-quarters of a point is expected, and attention will be put on the accompanying dot plot of rate projections.

Equities pared earlier losses and turned positive as Wall Street embraced Ralph Lauren Corp.’s outlook and found value in beaten-up home builders and airlines, according to Edward Moya, senior market analyst for the Americas at Oanda Corp. 

Shares of Ralph Lauren finished up by 2.9% after the company outlined its strategic growth plan in a statement and said it expects to return about $2 billion in excess cash flow to shareholders through fiscal 2025 in the form of dividends and share buybacks. It is also targeting a compound annual revenue growth rate over the next three years in the mid-to-high-single digits.

Prior to the final hour of trading, stocks were under pressure as Treasury yields continued to rise, with the policy-sensitive 2-year rate heading closer to 4%, a level that some say could send shivers throughout the financial market. The last time the 2-year yield ended the New York trading session at 4% or higher was on Oct. 16, 2007, when it closed at 4.127%. Rising yields make bonds look more attractive relative to stocks.

The U.K. stock market was closed in observance of the funeral of Queen Elizabeth II in London, attended by heads of state including U.S. President Joe Biden………Click here to read the source article[read more]

*Click on the “First Slice” icon to read the full article! After you read the full article, come back and tell us your thoughts.

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.