Shares of industrial and transportation companies were flat on optimism about the economic growth outlook.
Federal Reserve Chairman Jerome Powell said there hasn't been enough time to see the effects of last year's rate moves in slowing economic activity and inflation, and that the central bank is likely to keep lifting interest rates.
Economists at one brokerage outlined the case for a "soft landing," in which the U.S. economy would avert a recession, despite rapidly rising interest rates. Factors include the fact that "the economy is understaffed, mostly in the services industry and public sector," said economists at brokerage Morgan Stanley, in a research note. Other factors include "sticky low unemployment," the impact of "higher labor force participation on inflation, and expectations that "positive real wage growth ahead will support demand without accelerating inflation significantly," said the Morgan Stanley analysts, in a research note.
Motorcar Parts of America shares surged after investment firm Bison Capital Asset Management increased its stake in the automotive aftermarket-parts company.
Makers of chemicals, cat litter, fertilizer, paper, wallboard and steel have told investors over the past few weeks that lower natural gas bills have eased cost pressures, lifting profit margins.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
06-28-23 1801ET
