Financials and energy sectors were today's leaders
U.S. stocks closed higher on Wednesday, 11 September 2019 as investors eyed momentum-driven and technology shares again, along with small-capitalization stocks, while awaiting further clarity on central bank stimulus plans and international trade negotiations.
The Dow Jones Industrial Average rose 227.61 points, or 0.9%, to 27,137.04, closing above 27,000 for the first time since July. The S&P 500 index advanced 21.54 points, or 0.7%, to 3,000.93. The Nasdaq Composite index gained 85.52 points, or 1.1%, to 8,169.67.
The market entered today on the heels of a two-week rally, with some investors beginning to feel less concerned about growth prospects and trade relations with China. For instance, data has shown the U.S. consumer to be resilient in the face of trade tensions, which could see a reprieve with trade talks coming up next month.
This positive sentiment was manifested in the higher oil prices and the selling in the Treasury market on Monday. In turn, the S&P 500 financials and energy sectors were today's leaders.
Investors are also looking for the European Central Bank to deliver an interest rate cut and potentially other measures when policy makers meet Thursday, while the Federal Reserve is expected to deliver another rate cut when it meets next week.
Among economic data expected for the day, U.S. wholesale price rises accelerated slightly in August, with the producer price index rising 0.1%, versus a flat reading expected. Wholesale price growth rose year-over-year at a 1.8% rate, versus a 1.7% advance in July.
Wholesale inventories rose 0.2% in July, while the ratio of inventories to sales, or the number of months needed to sell remained steady at 1.36 compared to June, though it is up from 1.27 one year ago.
The 2-yr yield increased five basis points to 1.57%, and the 10-yr yield increased seven basis points to 1.62%.
The U.S. Dollar Index declined 0.1% to 98.32.
Bullion prices ended mixed at Comex on Wednesday, 11 September 2019 at Comex. Gold futures reclaimed the key $1,500-an-ounce mark on Wednesday, as traders weighed President Donald Trump's latest tweet calling for the Federal Reserve to cut interest rates down to zero, ahead of the central bank's meeting next week. Prices for the yellow metal had wavered between modest losses and gains early Wednesday, after four consecutive sessions of declines. The Fed will meet next week and it's widely expected to announce an interest-rate cut on Wednesday. Silver prices dropped.
Gold for December delivery on Comex tacked on $4, or 0.3%, to settle at $1,503.20 an ounce. December silver lost 1.6 cents, or 0.09%, to $18.17 an ounce.
Gold hit a string of more-than-six-year highs earlier this month as stocks sold off in August with the U.S.-China trade war worsening, but has pulled back this month as equities have steadied. Gold is down around 1% so far this week and 2% since the end of August.
Crude oil futures declined on Wednesday, 11 September 2019 settling at their lowest in about a week, as a report that President Donald Trump is considering easing sanctions on Iran raised the possibility of the return of the country's crude to the world market. The move comes a day after Trump announced that U.S. National Security Adviser John Bolton, who had argued to push Iranian oil exports to zero, stepped down.
A weaker demand outlook from OPEC on Wednesday also fed the price decline, despite U.S. government data showing a fourth straight weekly fall in domestic crude supplies. Oil traders on Tuesday digested the EIA's decision to cut its U.S. and global benchmark crude-price forecasts for this year and next.
West Texas Intermediate crude for October delivery fell $1.65, or 2.9%, to settle at $55.75 a barrel on the New York Mercantile Exchangethe lowest for a front-month contract since 3 Sept. November Brent crude lost $1.57, or 2.5%, to $60.81 a barrel on ICE Futures Europe.
Looking ahead, investors will receive the NFIB Small Business Optimism Index for August and the Job Opening report for July on Tuesday.
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