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  • BOJ policy shift knocks global sentiment
  • Tesla fell 8% after brokers cut PT
  • Energy stocks lead to rising crude support
  • Indexes rise: Dow 0.28%, S&P 0.10%, Nasdaq 0.01%

Dec 20 (Reuters) – Wall Street closed slightly higher on Tuesday after four losses, but investors worried about weak holiday shopping and a rise in bond yields after the Bank of Japan’s (BoJ) unexpected change in monetary policy.

Concerns about the Federal Reserve’s continued interest rate hike weighed heavily on stocks after its policy meeting last week.

Adding to the pressure was a rise in US Treasury yields after the BOJ made surprise changes to its bond yield controls, allowing long-term interest rates to rise further.

“The Bank of Japan news moved the bond market and continues to have an impact,” said Chris Zaccarelli, chief investment officer at Independent Advisor Alliance, Charlotte, NC.

Investors were also worried about the current quarter’s earnings season and winter holiday shopping.

“We went into it with pretty reasonable expectations, but retailers are having to make huge sales,” said Carol Schleif, deputy chief investment officer at BMO Family Office in Minneapolis, Minnesota, noting that consumers are shifting this year to “services and events — the holidays. tickets and restaurant gift certificates and things like that, as opposed to another sweater or another bag.”

Schleife said investors are cautious after a volatile year for stocks, with the S&P on track for its biggest annual decline since the 2008 financial crisis.

“People have been giving them their heads all year, and they’re not sure enough to want to break in,” he said.

“That’s what drives me to kind of a market where it’s going down a little bit, and it’s really hard for any part of the investing public to want to want to say they’re going to put a whole lot of money in. behind.”

The Dow Jones Industrial Average (.DJI) rose 92.2 points, or 0.28%, to 32,849.74, the S&P 500 (.SPX) added 3.96 points, or 0.10%, to 3,821.62 and the Nasdaq Composite added 1.IX0. point (.IX0). 0.01% to 10,547.11.

The biggest gainer among the S&P 500’s 11 major sectors was the energy index ( SPNY ), which ended up 1.52% as crude oil prices rose.

A trader works on the trading floor of the New York Stock Exchange (NYSE), New York, USA, December 14, 2022. REUTERS/Andrew Kelly

Of the four sectors that declined, consumer discretionary ( .SPLRCD ) was the weakest, down 1.13%.

The Dow Jones Transport average (.DJT) closed up 1.3% after underperforming the broader market for the entire session following JPMorgan’s bearish survey of transportation companies.

FedEx Corp ( FDX.N ) closed up 2.6% ahead of its quarterly report. But shares of the shipping company, which shocked the entire market in September by missing its financial forecast, were last up more than 3% in volatile after-bell trading following its fiscal second-quarter report and guidance for 2023.

In fixed income, US Treasuries fell after the BOJ’s shock move saw the benchmark 10-year Treasury yield rise to a three-week high of 3.71%.

Also on Tuesday, data showed U.S. single-family housing starts fell to a 2-1/2-year low in November and future building permits fell as higher mortgage rates continued to dampen housing market activity.

Shares of General Mills Inc ( GIS.N ) fell 4.6% after quarterly sales suffered in its high-margin pet business as major retailers trimmed inventory, overshadowing full-year earnings and sales forecasts. growth.

Shares of Tesla Inc ( TSLA.O ) fell 8% after at least three brokerages cut their target price on the electric car maker amid growing concerns over weak demand and CEO Elon Musk’s Twitter rant. with

Wells Fargo & Co ( WFC.N ) fell 2% after U.S. regulators fined the lender $3.7 billion for widespread mismanagement of auto loans, mortgages and deposit accounts.

Advancing issues outnumbered declining ones by a ratio of 1.12 to 1 on the NYSE; On the Nasdaq, a 1.06-to-1 ratio favored the advancers.

S&P 500 hits 1 new 52-week high and 14 new lows; The Nasdaq Composite posted 64 new highs and 399 new lows.

10.52 billion shares changed hands on US exchanges, compared to the average of 11.15 billion over the last 20 trading days.

Reporting by Shubham Batra, Johan M Cherian and Sruthi Shankar in Bengaluru; Editing by Maju Samuel, Anil D’Silva and David Gregorio

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