U.S. Market Indexes Higher as Brexit is Less of a Focus
U.S. market indexes were higher on Wednesday with less focus on Brexit and more of a focus on positive factors in the U.S. For the day the Dow Jones Industrial Average was higher at 17694.68 for a gain of 284.96 points or 1.64 percent.
The S&P 500 was also higher, closing at 2070.77 for a gain of 34.68 points or 1.70 percent. The Nasdaq composite closed higher at 4779.25 for a gain of 87.38 points or 1.86 percent. The VIX Volatility Index was lower at 16.74 for a loss of -2.01 points or -10.72 percent.
Source: DJIA, S&P 500 and Nasdaq Composite. Google Finance.
Wednesday’s Market Movers
The day’s leading economic report showed inflation at a reasonable level in comparison to the Fed’s 2 percent objective. According to the Commerce Department, the PCE Price Index increased 0.9 percent over the previous twelve months. The PCE Price Index excluding food and energy increased 1.6 percent.
In the housing market, pending home sales were down 3.7 percent which was below consensus of -1 percent. Mortgage applications were also down according to the Mortgage Bankers Association. The number of mortgage applications decreased 2.6 percent in comparison to the previous week.
Oil prices gained slightly on Wednesday following the EIA’s Petroleum Status report. The Petroleum Status report showed oil inventories down 4.1 million barrels from the previous week.
Stocks trading actively for the day included the following: Bank of America, Apple, Nike, General Electric and Citigroup.
In the Dow Jones Industrial Average, stocks leading gains included:
Gains (percent)
Nike 3.84
American Express 3.51
JPMorgan 2.82
Top sectors for the broad market were financial, energy and healthcare. In technology, the Nasdaq composite closed higher 4779.25 for a gain of 87.38 points or 1.86 percent. The Nasdaq 100 closed at 4364.74 for a gain of 74.27 points or 1.73 percent. In technology, stocks leading gains included the following:
Gains (percent)
Seagate Technology 6.30
NetApp 5.57
NetEase Inc. 4.90
In commodities, gold traded higher as evidenced by the SPDR Gold Trust which reported a gain of 0.52 points or 0.41 percent. In the currency market, the dollar weakened. The dollar was lower for the day as the U.S. Dollar Index was down -0.33 points or -0.34 percent to 95.74. The euro and the pound strengthened on Wednesday. The dollar traded for 1.1123 euros and the pound was lower at 1.3461 for a dollar.
Small-Cap Stocks
In small-caps, the Russell 2000 followed the day’s trend higher closing at 1131.62 for a gain of 24.32 points or 2.20 percent. The S&P 600 closed at 693.87 for a gain of 14.03 points or 2.06 percent. The Dow Jones Small-Cap Growth TSM Index closed at 6941.91 for a gain of 162.64 points or 2.40 percent. The Dow Jones Small-Cap Value TSM Index closed at 8206.32 for a gain of 143.03 points or 1.77 percent.
Other Notable Indexes
Other notable index closes included the S&P 400 Mid-Cap Index which closed at 1468.20 for a gain of 25.70 points or 1.78 percent; the S&P 100 closed at 916.82 for a gain of 14.46 points or 1.60 percent; the Russell 3000 closed at 1219.61 for a gain of 21.16 points or 1.77 percent; the Russell 1000 closed at 1145.95 for a gain of 19.51 points or 1.73 percent; and the Dow Jones U.S. Select Dividend Index closed at 600.15 for a gain of 8.96 point or 1.52 percent.
