Shares of industrial and transportation companies rose after mixed factory data, and amid hopes that the Federal Reserve will soon shift rate policy.
Durable goods orders fell 1% in February because of reduced demand for cars, planes and military equipment. Orders rose outside of the volatile transportation category. Cyclical sectors are bouncing on hopes that the banking crisis will cause the Fed to hold off on rate hikes, strategists said.
"The market for the last year-and-a-half has not listened to (Fed) Chairman (Jerome) Powell," said JJ Kinahan, chief executive of IG North America, owner of brokerage firm tastytrade. "He continues to say 'we're going to do what we have to do [on inflation].' The market continues to behave like, 'maybe he won't do it this time.' He's the most frustrated guy in the world ... 'I told you what's going to happen, and you just don't want to hear it.'"
American Airlines said it would suspend its Philadelphia-Madrid route for a few weeks in May and early June, citing delivery delays for the 787 Dreamliner jets. American said it was cutting the flights now to ensure it could help customers arrange different travel plans.
South Korea's LG Energy Solution said it would invest about $5.6 billion in a battery-manufacturing complex in Arizona, the latest in a string of new plants by foreign companies as the U.S. transitions toward cleaner fuels.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
03-24-23 1727ET
