Shares of industrial and transportation companies rose amid mixed economic data.
The Philadelphia Fed's gauge of regional business activity stayed in expansion territory in March, slipping only slightly to 3.2 from 5.2 in the prior month.
The number of Americans who applied for unemployment benefits last week fell slightly to 210,000 and continued to show a surprisingly low level of layoffs in the economy.
Many of the gains associated with the Federal Reserve's policy plans and a "soft landing" are already priced into cyclical stocks, warned one veteran strategist. "Investors have long been waiting for the Fed to finally begin easing and most expect clear sailing for stocks if/when the Fed does start cutting interest rates," said Jim Paulsen, a longtime Wall Street strategist who is now an independent analyst.
"However, the history of Fed rates cuts is a mixed bag for the stock market. Fed easing is good for stocks provided the economy does not fall into a recession, causing a rise in the unemployment rate."
In a good sign for demand, FedEx shares surged in late trading following the package-delivery giant's stronger-than-anticipated quarterly earnings report.
Write to Rob Curran at rob.curran@dowjones.com
(END) Dow Jones Newswires
03-21-24 1744ET
