Stocks up after week’s 1st inflation update Energy prices

NEW YORK – Most U.S. stocks ticked higher Wednesday amid mixed yields in the bond market, which has been the main driver of Wall Street’s moves recently.

The S&P 500 rose 18.71, or 0.4%, to 4,376.95 for its fourth straight gain. The Dow Jones Industrial Average added 65.57 points, or 0.2%, to 33,804.87, and the Nasdaq composite gained 96.83, or 0.7%, to 13,659.68. The Russell 2000 index of smaller companies fell 2.65 points, or 0.1% to 1,773.30.

Wall Street has been mostly struggling since the summer as longer-term yields shoot higher in the bond market, weighing on prices for all kinds of investments. Some relief has come this week, and yields have eased after officials at the Federal Reserve suggested they may be done raising their main overnight interest rate.

The yield on the 10-year Treasury fell to 4.56% from 4.66% late Tuesday and from more than 4.80% last week, when it reached its highest level since 2007. Besides hurting prices for investments, high yields have jacked up rates for mortgages and other loans, which saps momentum from the economy.

But the two-year Treasury yield, which moves more closely with expectations for the Fed, ticked up to 4.99% from 4.97%.

Yields were mixed after a report showed inflation at the wholesale level was stronger last month than economists expected. A report showing how much inflation U.S. households are facing will arrive on Thursday, and economists expect it to show a slowdown.

While the report on wholesale inflation was above expectations, Rubeela Farooqi, chief U.S. economist at High Frequency Economics, said it wasn’t enough to change her forecast that the Fed’s main interest rate is already at its peak.

And Gregory Daco, chief economist at EY, said, “Fed officials are gradually taking comfort with the fact that the July rate hike may have been the last one in this historic tightening cycle.”

A further pullback in crude oil prices is helping to take some heat off inflation and support Wall Street.

Energy stocks in the S&P 500 fell to the sharpest losses among the 11 sectors that make up the index.

Exxon Mobil felt extra pressure after it said it would buy Pioneer Natural Resources in an all-stock deal valued at $59.5 billion. Exxon Mobil fell 3.6%, and Pioneer Natural Resources rose 1.4%.

Birkenstock stumbled in its debut on Wall Street. The maker of distinctive sandals fell 12.6% after initially

Benchmark U.S. crude oil for November delivery fell $2.48 to $83.49 a barrel Thursday. Brent crude for December delivery fell $1.83 to $85.82 a barrel.

Wholesale gasoline for November delivery fell 5 cents to $2.21 a gallon. November heating oil fell 2 cents to $3 a gallon. November natural gas was unchanged at $3.38 per 1,000 cubic feet.

pricing its stock at $46 per share, which valued the company at $8.64 billion.

In stock markets abroad, indexes were mixed in Europe and higher across much of Asia.

In South Korea, the Kospi jumped 2% after Samsung Electronics reported improved quarterly earnings. Analysts say the worst of the post-pandemic contraction in demand for computer chips and electronic devices may be over.

Gold for December delivery rose $12 to $1,887.30 an ounce. Silver for December delivery rose 18 cents to $22.13 an ounce. December copper fell 2 cents to $3.61 a pound.

The dollar rose to 149.26 Japanese yen from 148.74 yen. The euro rose to $1.0607 from $1.0599.