By Ellie Ismailidou and Carla Mozee, MarketWatch
Hewlett-Packard shares tumble after weak quarterly sales
U.S. stocks inched higher Wednesday as a pre-Thanksgiving round
of U.S. economic data were interpreted as solid enough to keep the
Federal Reserve on track for a potential interest-rate increase in
December.
The S&P 500 rose 1.5 points, or less than 0.1%, to 2,090.
The Dow Jones Industrial Average rose 17 points, or 0.1%, to 17,828
and the Nasdaq Composite was up 12 points, or 0.2%, at 5,114.
U.S. orders for long-lasting or durable goods rebounded
(http://www.marketwatch.com/story/durable-goods-orders-climb-3-in-october-2015-11-25)in
October to show the first increase in three months, led by a surge
in demand for large, commercial airplanes. Meanwhile, the number of
people who applied for U.S. unemployment benefits
(http://www.marketwatch.com/story/us-jobless-claims-drop-12000-to-260000-2015-11-25)
fell by 12,000 to 260,000 in the week before Thanksgiving,
indicating that the labor market is continuing its steady path to
recovery.
Wednesday's data keep the Fed on track to raise rates in
December, particularly as they "offer a strong gauge of the
employment situation, which means we could see a 200,000 job gain
in November's jobs report next week," said Douglas Coté, chief
market strategist at Voya Investment Management.
But inflation, as gauged by the personal consumption expenditure
price index, edged up just 0.1% in October, the Commerce Department
said on Wednesday morning. The PCE price index is considered by
analysts as the Fed's preferred inflation measure, as the central
bank considers raising rates for the first time in nearly a
decade.
The PCE index has risen just 0.2% in the past 12 months
(http://www.marketwatch.com/story/consumer-spending-rises-scant-01-in-october-2015-11-25),
while the core PCE index that excludes food and energy was flat,
and it's up 1.3% over the past year, well below the Fed's 2%
inflation target.
As for the weak PCE, "the Fed's view seems to be that this is a
lagging indicator," Coté said, with policy makers viewing it as
transitory, particularly in the context of strong wage gains in the
October jobs report.
Read: The Fed is ready for higher rates--are you?
(http://www.marketwatch.com/story/the-fed-is-ready-for-higher-rates-are-you-2015-11-24)
Stocks ended slightly higher Tuesday
(http://www.marketwatch.com/story/wall-street-set-for-muted-open-after-turkey-shoots-down-jet-2015-11-24),
aided by gains for the energy sector as oil prices surged 3% in the
wake of Turkey's downing of a Russian jet fighter near the Syrian
border. The S&P 500 edged up 0.1%, as did the Dow Jones
Industrial Average . The Nasdaq Composite was little changed at
5,102.81.
Trading will closed Thursday for Thanksgiving Day, and open for
a half-day on Friday. No economic data are scheduled for release on
either day.
Read: When do markets close Thanksgiving Week?
(http://www.marketwatch.com/story/when-do-markets-close-around-thanksgiving-2015-11-23)
Data: New home sales were up 10.7%
(http://www.marketwatch.com/story/sales-of-new-homes-leap-107-to-495000-annual-rate-2015-11-25)
for the month of October, but median prices fell 7% for the year,
the Commerce Department said Wednesday.
Consumer sentiment rose in November, but not as much as
previously indicated, according to the latest monthly survey by the
University of Michigan
(http://www.marketwatch.com/story/consumer-sentiment-improves-in-november---but-with-a-hitch-2015-11-25).
Corporates: Hewlett-Packard Co. (HPQ) shares fell 14% after the
tech heavyweight late Tuesday reported weak quarterly sales
(http://www.marketwatch.com/story/hp-inc-stock-dives-following-weak-quarterly-sales-2015-11-24).
But shares of Hewlett Packard Enterprise Co. (HPE), which now
houses the cloud and enterprise-market properties of the former
Hewlett-Packard Co., rose 3.1%.
Deere & Co. (DE) shares jumped 2.3% after the heavy
equipment maker's fourth-quarter profit and sales leapt above
expectations
(http://www.marketwatch.com/story/deere-shares-up-6-in-premarket-after-profit-and-sales-beat-estimates-2015-11-25).
Cost cuts helped offset weakness in global markets for farm and
construction equipment.
Shares in Baxalta Inc. (BXLT) climbed 2.7% after a report that
Dublin-based Shire PLC (SHPG) is preparing a renewed takeover bid
(http://www.marketwatch.com/story/shire-shares-rise-on-report-of-renewed-baxalta-bid-2015-11-25)
for the U.S. biotech company. U.S.-listed shares of Shire
(SHPG)(SHPG) slipped 0.8%.
Other markets: Most Asian markets slipped Wednesday, still
feeling the weight of geopolitical tensions, although a rise in oil
prices overnight helped some energy shares. The Nikkei Average fell
0.4%, for its first loss in four sessions.
European stocks were moving higher
(http://www.marketwatch.com/story/european-stocks-gain-with-travel-shares-finding-relief-2015-11-25)
after Turkey's president said the country isn't looking to escalate
tensions with Russia.
Gold prices were off nearly 0.5%, while oil futures lost nearly
2% after Tuesday's leap. The U.S. dollar index rose 0.5% to 100, as
the euro fell below $1.06.
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(END) Dow Jones Newswires
November 25, 2015 10:42 ET (15:42 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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