December 2, 2022

Wall Street rises on inflation data but geopolitical tensions dampen gains

  • US producer prices rose less than expected
  • Walmart jumps on strong forecast, other retailers rise
  • Indexes Up: Dow 0.03%, S&P 0.74%, Nasdaq 1.4%

Nov 15 (Reuters) – The S&P 500 and Nasdaq rose on Tuesday, but gains were pared after a report that Russian missiles had landed in Poland, killing two people, somewhat undermining hopes that cooling inflation could lead to a rate hike. US Federal Reserve.

Firefighters told Reuters two people were killed in an explosion in the village of Przewodow in eastern Poland, near the border with Ukraine.

The Associated Press cited a senior U.S. intelligence official as saying the explosion occurred after Russian missiles entered Poland. However, the Pentagon said on Tuesday that it could not confirm reports that Russian missiles had penetrated into Poland.

Russia has been attacking cities across Ukraine with missiles, in what Kiev said was the worst wave of missile attacks in the nearly nine-month war, prompting Poland’s prime minister to call an emergency meeting of the government’s committee on national defense and security affairs.

“The decline was fueled by reports of a Russian missile landing in Poland,” said Steve Sosnik, chief strategist at Interactive Brokers. “It could develop into something much worse, but right now markets are nervous, not panicking.”

Stocks retreated mid-day in the earlier session after data showed U.S. producer prices rose less than expected.

“You’re still seeing volatile trading in the markets,” said Matthew Miskin, co-chief investment strategist at John Hancock Investment Management.

“We’re not out of the woods yet in terms of the Russia-Ukraine war. We’ve had improved data on inflation, but there are still growth concerns.”

Dow Jones Industrial Average (.DJI) The S&P 500 rose 9.73 points, or 0.03%, to 33,546.43. (.SPX) The Nasdaq Composite rose 29.4 points, or 0.74%, to 3,986.65. (.IXIC) It added 156.76 points or 1.4% to 11,352.98.

Tuesday’s inflation report showed producer prices rose 8% to 8.3% in the 12 months to October.

Tuesday’s stock gains built on a rally late last week on a cooler-than-expected report on consumer prices.

Shares of Walmart Inc (WMT.N) The top U.S. retailer rose 7% after raising its annual sales and profit forecasts, benefiting from steady demand for groceries despite higher prices.

Shares of other retailers, including Target Corp (TGT.N) and Costco (COST.O)Walmart rose following the report.

Reporting by Louis Kraskopp and Carolina Mandel, Shubham Patra, Shruti Shankar, Amrutha Khandekar and Angika Biswas in New York; Additional reporting by Devik Jain; Editing by Shaunak Dasgupta and Arun Koiyur

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