Nasdaq Index, Dow Jones, S&P 500 News: Stocks Rise as Monthlong Rally Resumes

Highlights

• US stock indices grinding higher.
• Robust U.S. gross domestic product (GDP) data helping to lift shares.
• General Motors soars 11% while Petco plunges 17%. 

US Stocks Rise as Traders Bet on Fed Rate Hike Pause

The major U.S. stock indexes are edging higher on Wednesday as investors continue to bet that the Federal Reserve is done raising benchmark interest rates. Today’s early move represents a continuation of this month’s rally which had stalled the last few days.

At 15:00 GMT, the blue chip Dow Jones Industrial Average is trading 35453.08, up 36.10 or +0.10%. The benchmark S&P 500 Index is at 4568.98, up 14.09 or +0.31% and the tech-weighted Nasdaq-100 Index is trading 14334.89, up 53.13 or +0.37%.

US Economic News

Data released Wednesday showed gross domestic product data for the third quarter grew at a stronger-than-expected pace, accelerating at a 5.2% annualized pace. The boost came primarily from revisions to government spending and investments in nonresidential structures. U.S. GDP rises at 5.2% pace in Q3, more than expected.

Movers and Shakers

General Motors shares popped 11% after the company announced a $10 billion buyback and raised its dividend. Phillips 66′s stock jumped 3% after Elliott Investment Management took a $1 billion stake in the energy company. These are the stocks moving the most in premarket trading:

Petco shares of the pet retailer plummeted 17% after reporting disappointing third-quarter earnings.

Foot Locker shares jumped 12% after the footwear retailer posted third-quarter earnings and sales Wednesday that beat Wall Street expectations and said it expects better same-stores sales this year than it previously did.

Shares of Phillips 66 gained more than 5% in early morning trading after Elliott Management took a $1 billion stake in the energy company. The activist firm and plans to seek as many as two board seats, sources told CNBC’s David Faber.  Phillips 66 has a market cap of $51.9 billion.

Treasury Yields Dip

U.S. Treasury yields fell on Wednesday as investors considered the outlook for interest rates and awaited fresh data that could provide hints about the state of the economy.

Investors assessed the outlook for interest rates as they digested comments from Federal Reserve Governor Christopher Waller and looked to upcoming economic data.

Waller on Tuesday said that monetary policy was “well positioned” to achieve the Fed’s goals of slowing the economy and lowering inflation. Many investors took this as a sign that the central bank could be done hiking rates.

Technical Analysis

The S&P 500 Index is edging higher on the daily chart after posting several days of consolidation. Overcoming a key resistance area at 4562.50 will put the index in a position to accelerate into the last main top at 4634.50. Taking out this level will indicate the buying is getting stronger.

The direction of the market hinges upon 4562.50. If it fails, we could see more selling pressure with 4494.00 a potential downside target.