The Dow Jones Industrial Average closed at 26,036.10 on Wednesday with a gain of 258.20 points or 1.00%. The S&P 500 closed at 2,887.94 for a gain of 18.78 points or 0.65%. The Nasdaq Composite closed at 7,856.88 for a gain of 29.94 points or 0.38%. The VIX Volatility Index was lower at 19.28 for a loss of 1.00 points or -5.07%.
Wednesday’s market movers
U.S. indexes closed higher Wednesday, rebounding from a lower close Tuesday. The energy sector led gains for the day after the Energy Information Administration reported a substantial decrease in oil inventory. Investors continued to watch China trade headlines and the Treasury yield curve. The three-month to 10-year Treasury spread has been inverted since May. On Wednesday, the 10-year to two-year spread was approximately -0.05%.
Investors were also watching news from the U.K., where Prime Minister Boris Johnson is expected to request a suspension of parliament. A suspension would likely help to achieve the U.K.’s Brexit by its end of October target, but also increase the chances of a no-deal arrangement.
On Thursday, investors will be looking to the gross domestic product and corporate profit releases. Quarterly GDP is expected to remain mostly unchanged with a forecast of 2.1%. Quarterly corporate profits are estimated to increase 2.9% following a decrease of -4.1%.
Economic reports affecting market trading included the following:
- The MBA Mortgage Applications Index decreased 6.2% following a decrease of 0.9%. The MBA’s average 30-year mortgage rate increased to 3.94% from 3.90%.
- The EIA’s Weekly Petroleum Status report showed crude oil inventory decreasing by 10.027 million barrels following a decrease of 2.7 million barrels in the previous week’s report.
- The Treasury held an auction for five-year notes at a rate of 1.365%.
In the Dow Jones Industrial Average, the following stocks led gains:
- Dow Inc. (DOW, Financial) 3.32%
- Pfizer (PFE, Financial) 2.17%
- UnitedHealth (UNH, Financial) 2.07%
- United Technologies (UTX, Financial) 1.83%
- Home Depot (HD, Financial) 1.72%
Small-cap stocks
In small caps, the Russell 2000 closed at 1,472.52 for a gain of 16.48 points or 1.13%. The S&P 600 closed at 906.02 for a gain of 10.80 points or 1.21%. The Dow Jones U.S. Small-Cap Growth Index closed at 9,582.29 for a gain of 88.45 points or 0.93%. The Dow Jones U.S. Small-Cap Value Index closed at 8,889.58 for a gain of 82.03 points or 0.93%.
Other notable indexes
Other notable index closes included the S&P 400 Mid-Cap Index at 1,849.91 for a gain of 17.28 points or 0.94%; the S&P 100 at 1,276.24 for a gain of 8.18 points or 0.65%; the Nasdaq 100 at 7,587.90 for a gain of 21.87 points or 0.29%; the Russell 3000 at 1,692.37 for a gain of 11.20 points or 0.67%; the Russell 1000 at 1,597.18 for a gain of 10.05 points or 0.63%; the Wilshire 5000 at 29,503.07 for a gain of 197.74 points or 0.67%; and the Dow Jones U.S. Select Dividend Index at 687.57 for a gain of 6.04 points or 0.89%.
Not a Premium Member of GuruFocus? Sign up for a free 7-day trial here.
