Modestly Bullish Stock Mood Settles in Pre-Holiday

Early stock gains take shape Wednesday after a flurry of mostly bearish headlines in yesterday’s pre-market were shrugged off, allowing the major stock averages to log higher finishes by the closing bell. Watch for early action in response to a flurry of economic news but then gradually emptying desks as participants head home for the Thanksgiving holiday. U.S. financial markets are closed Thursday. Stock trading ends early, at 1 p.m. Eastern on Friday.

For now, relatively upbeat economic data (or at least no major surprises) trumps global tensions and spotty earnings news. It’s an economic backdrop that many on Wall Street believe sets up the Federal Reserve for a gradual reversal of extreme monetary policy—a Fed approach that has been well-telegraphed and that the Street has had time to get used to. The Fed meets next month and a majority of Fed-watchers thinks the panel will raise its Fed funds rate by a quarter-point, the first increase in nearly a decade.

Deere Surprises Street. Deere & Co. DE shares are strong early gainers after the heavy farm equipment maker’s fiscal Q4 profit and sales handily beat Wall Street’s expectations. Deere execs said cost cuts helped offset weakness in global markets for farm and construction equipment.

HPQ Lower After Results. Hewlett-Packard Co., newly named HP Inc., HPQ is an early decliner after the tech heavyweight late Tuesday reported mostly disappointing quarterly results and forecasts. It’s a tricky report with name changes and divisional shifts, but essentially Wall Street is focusing on disappointing sales figures. HPQ said revenue fell 9% from the same period last year to $25.7 billion. For fiscal 2016, HP Inc., which now houses its printing and personal systems businesses, is calling for adjusted earnings per share (EPS) at between $1.59 and $1.69 for fiscal 2016; that’s below Street expectations for $1.70.

 

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Posted In: EarningsNewsGuidanceEventsEconomicsHot
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