U.S. stocks were rising after another set of optimistic data showing inflation is cooling as major retailer Target beat expectations.
At 11:03 ET (16:03 GMT), the Dow Jones Industrial Average was up 163 points or 0.5%, while the S&P 500 was up 0.5% and the NASDAQ Composite was up 0.6%.
The main indices on Wall Street closed sharply higher Tuesday after data showed price growth in the world’s largest economy had slowed by more than expected last month, boosting hopes that the Fed’s unprecedented run of interest rate hikes aimed at corralling elevated inflation may have peaked.
The 30-stock Dow added almost 500 points, or 1.4%, while the benchmark S&P gained 1.9% and the tech-heavy Nasdaq rose 2.4%, the best day since April for both indices.
Retail sales in spotlight
Top-line U.S. inflation came in flat last month, an annual rise of 3.2%, against consensus expectations for a 0.1% rise on the month and a rise of 3.3% on an annual basis.
This offered further evidence that inflationary pressures are cooling, and expectations that the Fed could now cut rates next year increased, with the chance of a reduction in March now standing at around 30%, according to Investing.com’s Fed Rate Monitor Tool.
In Wednesday’s economic data, producer prices rose 1.3%, versus expectations for a rise of 1.9% in October from last year, slowing from a 2.2% increase in September.
October retail sales fell 0.1% compared with expectations for a drop of 0.3% on the month. Consumer spending has remained resilient despite rising prices, though retailers have said some shoppers are holding back on discretionary purchases.
Target beats expectations
Retailing giant Target (NYSE:TGT) beat profit expectations, as same store sales fell 4.9%. Its guidance for the fourth quarter was in line with expectations. Shares rose 17.9%.
Discount retailer TJX Companies Inc (NYSE:TJX) also beat expectations as revenue rose 9% from the same time last year. Same store sales rose 6%. Shares fell 3.3%.
Oil slips ahead of EIA inventories
Oil prices slipped lower Wednesday, handing back some of the previous session’s gains ahead of the latest release of U.S. crude inventories.
The U.S. Energy Information Administration will release its first oil inventory report in two weeks later in the session, after a systems upgrade last week. Industry data from the American Petroleum Institute released on Tuesday pointed to a weekly build of just over one million barrels in inventories.
—Peter Nurse contributed to this report
https://www.investing.com/news/stock-market-news/dow-futures-rise-target-earnings-retail-sales-due-3234837
