U.S. stocks rose on Wednesday as investors watched the economic recovery and rising inflation.
The Dow Jones Industrial Average, which stood at 125, rose 38 points, or 0.1%, to 34,349. Nasdaq rose 0.5%.
A number of companies that rely directly on consumer spending have gained strength. Dick’s Sporting Goods rose 16.7% after first-quarter sales and earnings reports following the return of Team Sports. Similarly, for strong financial results, Urban Outfitters grew by 14.5% and Abercrombie & Fitch by 14.8%. In addition to hotels and cruise lines, these businesses are growing as more and more people return to normal by the rise of vaccines and seemingly declining epidemics.
The earnings of retailers and communications firms were checked by technicians and healthcare companies leaving the stock behind.
Markets have moved in recent days as investors wait for additional sources about the weather and economic growth of the season of great corporate earnings.
This will be the market environment for some time to come, said Christina Hooper, chief global market strategist at Invesco.
Economists expect a big comeback in 2021 when the Commerce Department releases its latest first-quarter GDP report, scheduled for Thursday’s next key economic update, and the results from the start of the year will give Wall Street a clearer picture.
The booming economy has also raised concerns about inflation, although analysts expect that much of this growth will be linked to economic growth and will be digestible. Much of the concern about strong inflation centers on the fact that the government and central banks are provoking declining economic stimulus and reversing interest rates. Federal Reserve officials say they do not yet see the need to change course.
Bond yields were relatively stable. Ten-year Treasury yields stood at 1.56% from Tuesday night.
Hooper said investors should stop worrying about the Fed and short-term concerns surrounding inflation. This is really creating a lot of deviations that we can see.
Online retail giant Amazon is buying MGM, TV and movie studios behind James Bond, legal blonde and shark tanks, with the goal of meeting its video streaming service to watch more shows. The stock changed slightly in the announcement.
European markets were mixed. London’s FTSE 100 fell 0.1%, Germany’s DAX rose 0.1% and France’s SAC 40 rose 0.1%. Asian markets were generally bullish.