Dow recovers early losses

Stocks have drifted higher on Wall Street, reversing losses from earlier in the trading session, as the Dow attempts to break a three-day run of declines.

There is a lack of clear direction to the stock market today that matches the lack of clarity regarding the Fed’s intentions, despite a succession of speeches from Fed officials this week.

Stocks moved into the red in the morning on Wall Street, but managed to turn things around by the afternoon. By early afternoon in New York, the Dow had risen 0.11% to 15,417 and the S&P 500 had gained 0.26% to 1706.3.

New York Fed President William Dudley signalled yesterday that he opposes tapering until the economy has recovered further, GDP needs to rise further to spur jobs growth.

Richard Fisher, President of the Dallas Fed, argued the other way in a speech in San Antonio, also yesterday, saying that the decision to maintain stimulus undermines the Fed’s credibility and heightens uncertainty. I’d possibly agree with the latter notion, but for the Fed to say the decision was economic dependent, then not taper when certain data was soft would have been more damaging to the Fed’s credibility in my mind. Mr Fisher is not a voting member of the FOMC in 2013, but will be a voting member next year.

Data continues to show softness, with consumer confidence sinking to 79.7 in September from the 81.5 seen last month, and the Richmond Fed manufacturing survey unchanged this month, after a bullish reading of 14 in August. The consensus estimate had been for the survey to come in at 10.5. Following on from yesterday’s disappointing PMI, it suggests the manufacturing sector is facing some headwind.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.

  • Ik wens per e-mail informatie van IG Group bedrijven te ontvangen over handelsideeën en IG's producten en diensten.

Voor meer informatie over hoe wij uw gegevens mogelijk kunnen gebruiken, bekijkt u ons Privacy- en toegangsbeleid en onze privacy website.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.