The Globe and Mail reports in its Thursday, Nov. 23, edition that U.S. stocks ended higher on Wednesday on optimism that the Federal Reserve may be done raising interest rates and that the economy is still resilient. A Reuters dispatch to The Globe reports that economic reports Wednesday on jobless claims, durable goods and consumer sentiment seemed to suggest the U.S. economy is easing but may stay strong enough to avoid recession. Data showed the number of Americans filing new claims for unemployment benefits fell more than expected last week.
Tuesday's minutes on the last Fed meeting showed a cautious approach toward monetary policy. Still, stocks have risen sharply in recent weeks on the view the Fed is done hiking rates. LPL Financial
analyst Quincy Krosby says: "Overall you have a solid backdrop to the market. The signals for the market, despite concerns over the economy and consumer spending, is that this market has sustainability in what is probably the most hospitable season for the market."
She says stocks tend to rise just before the U.S. Thanksgiving holiday and also rally heading into year-end. The market will be closed on Thursday for Thanksgiving.
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