ASX set to rise as US markets rally despite economy worries

U.S. pharmaceutical giant Eli Lilly and Company rose 2.4% as it raised its full-year profit forecast, while Comcast rose 7.8% as its quarterly profit topped estimates, helped by sustained demand for its broadband service and higher theme park traffic .


Investors appeared to ignore past data that showed U.S. economic growth slowed more than expected in the first quarter as an acceleration in consumer spending was offset by businesses investing in reducing inventories.

“If we look ahead, the data does seem to continue to weaken. The good news is we do think the recession is likely to be mild,” said Brian Klimke, investment director at Cetera Investment Management.

The Fed is expected to hike rates by another 25 basis points next week, although the slowdown largely reflects the drag from weak inventory investment.

U.S. Treasury yields were higher across the board as investors weighed a showdown over the U.S. debt ceiling. Economic data suggested that inflation is likely to remain sticky despite the slowing economy.

U.S. House of Representatives Wednesday Bill to raise government’s $31.4 trillion debt ceiling narrowly passed That includes spending cuts across the board for the next decade. The bill is expected to stall in the Senate.

The Dow Jones Industrial Average closed up 1.57% at 33,826.16, the S&P 500 rose 1.96% to 4135.35 and the Nasdaq Composite rose 2.43% to 12,142.24.

EBay rose 4.6 percent after the e-commerce company forecast higher-than-expected revenue for the current quarter.

AbbVie shares fell 8.1% after the drugmaker missed quarterly revenue forecasts for its new treatment, while heavy machinery maker Caterpillar fell nearly 3% as a flat order backlog indicated Demand may have peaked.

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