Tweet
Dow and S&P wipe out losses from last Wednesday's sell-off
Fred Imbert | @foimbert
44 Mins AgoCNBC.com
3
SHARES
Markets open higher, try to extend win streak 3 Hours Ago | 03:11
U.S. equities traded higher on Wednesday, with the S&P 500 and the Dow Jones industrial average erasing losses from its biggest sell-off of the year.
The S&P 500 gained 0.1 percent to trade around its May 16 close of 2,400.67, wiping out losses from last Wednesday. The index shed 1.62 percent then amid fears that the Trump agenda might be in danger.
Retail capped gains in the S&P, however, as Tiffany, Signet Jewelers, Advanced Auto Parts and Lowe's were among the worst performers in the index.
The Dow, meanwhile, rose about 25 points, trading near its May 16 close of 20,979.75.
"There are two pillars in the market right now. First, earnings were good. You can knock it any way you want but the earning season was good," said Phil Blancato, CEO of Ladenburg Thalmann Asset Management. "The second is this ying-yang data. As long as we continue to get mixed data, we will likely stay in this trading range."
Brendan McDermid | Reuters
Traders work on the floor of the New York Stock Exchange.
But since, stocks have posted a four-day winning streak as Wall Street regained faith in the so-called Trump trade.
The release of the Federal Reserve minutes at 2 p.m., however, could lead to some market turbulence as investors were eager to receive more clues about its plans for monetary policy. The S&P posted its biggest one-day reversal in 14 months the last time the Fed released minutes.
"Investors are in wait-and-see mode right now," said Adam Sarhan, CEO of 50 Park Investments. "The central-bank narrative has changed dramatically over the past few months. It's no longer easy money on the table, but rather a tightening path."
Stocks have mostly posted gains on days when the Fed releases minutes since Janet Yellen became chair, according to Kensho. On average, the S&P 500 has gained 0.28 percent on those days, with health care, consumer discretionary and materials outperforming, Kensho data showed.
The Fed held off on raising rates earlier this month but most investors are expecting the central bank to hike again at its June 14 meeting. Market expectations for a June rate hike are 83.1 percent, according to the CME Group's FedWatch tool.
Treasury yields traded higher on Wednesday, with the benchmark 10-year note yield advancing to 2.29 percent while the two-year yield also rose to 1.325 percent.
In other economic news, total mortgage application volume increased 4.4 percent last week on a seasonally adjusted basis from the previous week thanks largely to refinancings. Existing home sales slipped 2.3 percent in April, more than expected.
Overseas, European stocks traded marginally higher, while Asian equity markets closed mostly higher despite Moody's downgrading China's credit rating for the first time since 1989.
"Bond issuers in the country (many of which have government backing) will pay the price. The mothership helps finance much of the banking and follow-on shadow banking system indirectly, this downgrade will leave a stain," said Larry McDonald, head of the U.S. macro strategies at ACG Analytics and author of The Bear Traps Report newsletter.
- The S&P 500 and the Dow Jones industrial average traded near their May 16 closing levels to erase losses from the biggest sell-off of the year.
- But the release of the Federal Reserve minutes at 2 p.m. could lead to some market turbulence. Investors were eager to receive more clues about its plans for monetary policy.
Fred Imbert | @foimbert
44 Mins AgoCNBC.com
3
SHARES
| |
|
|
|
|
|
Markets open higher, try to extend win streak 3 Hours Ago | 03:11
U.S. equities traded higher on Wednesday, with the S&P 500 and the Dow Jones industrial average erasing losses from its biggest sell-off of the year.
The S&P 500 gained 0.1 percent to trade around its May 16 close of 2,400.67, wiping out losses from last Wednesday. The index shed 1.62 percent then amid fears that the Trump agenda might be in danger.
Retail capped gains in the S&P, however, as Tiffany, Signet Jewelers, Advanced Auto Parts and Lowe's were among the worst performers in the index.
The Dow, meanwhile, rose about 25 points, trading near its May 16 close of 20,979.75.
"There are two pillars in the market right now. First, earnings were good. You can knock it any way you want but the earning season was good," said Phil Blancato, CEO of Ladenburg Thalmann Asset Management. "The second is this ying-yang data. As long as we continue to get mixed data, we will likely stay in this trading range."
Brendan McDermid | Reuters
Traders work on the floor of the New York Stock Exchange.
But since, stocks have posted a four-day winning streak as Wall Street regained faith in the so-called Trump trade.
The release of the Federal Reserve minutes at 2 p.m., however, could lead to some market turbulence as investors were eager to receive more clues about its plans for monetary policy. The S&P posted its biggest one-day reversal in 14 months the last time the Fed released minutes.
"Investors are in wait-and-see mode right now," said Adam Sarhan, CEO of 50 Park Investments. "The central-bank narrative has changed dramatically over the past few months. It's no longer easy money on the table, but rather a tightening path."
Stocks have mostly posted gains on days when the Fed releases minutes since Janet Yellen became chair, according to Kensho. On average, the S&P 500 has gained 0.28 percent on those days, with health care, consumer discretionary and materials outperforming, Kensho data showed.
The Fed held off on raising rates earlier this month but most investors are expecting the central bank to hike again at its June 14 meeting. Market expectations for a June rate hike are 83.1 percent, according to the CME Group's FedWatch tool.
Treasury yields traded higher on Wednesday, with the benchmark 10-year note yield advancing to 2.29 percent while the two-year yield also rose to 1.325 percent.
In other economic news, total mortgage application volume increased 4.4 percent last week on a seasonally adjusted basis from the previous week thanks largely to refinancings. Existing home sales slipped 2.3 percent in April, more than expected.
Overseas, European stocks traded marginally higher, while Asian equity markets closed mostly higher despite Moody's downgrading China's credit rating for the first time since 1989.
"Bond issuers in the country (many of which have government backing) will pay the price. The mothership helps finance much of the banking and follow-on shadow banking system indirectly, this downgrade will leave a stain," said Larry McDonald, head of the U.S. macro strategies at ACG Analytics and author of The Bear Traps Report newsletter.