U.S. stock markets closed higher on Wednesday posting back-to-back closing in green. Market participants regained confidence on risky assets like equities as global trade war related concerns reduced to some extent. Investors also assessed a series of mixed economic data. All three major stock indexes ended in positive territory.
The Dow Jones Industrial Average (DJI) rose 0.7% or 317.24 points to close at 44,873.28 after a choppy session. At intraday low, the blue-chip index was down more than 203 points. Notably, 19 components of the 30-stock index ended in positive territory while 11 in negative zone.
The tech-heavy Nasdaq Composite finished at 19,692.33 advancing 0.2% due to mixed performance by technology behemoths. At intraday low, the tech-laden index was down more than 155 points.
The major gainer of the index was GRAIL Inc. GRAL. The stock price of this small-cap biotech firm soared 21.6%. GRAIL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The S&P 500 appreciated 0.4% to finish at 6,061.48. At intraday low, Wall Street’s benchmark was down more than 0.5%. Eight out of 11 broad sectors of the broad-market index ended in positive territory, three in negative zone.
The Financials Select Sector SPDR (XLF), the Technology Select Sector SPDR (XLK), the Health Care Select Sector SPDR (XLV), the Real Estate Select Sector SPDR (XLRE) and the Utilities Select Sector SPDR (XLU) were up 1.1%, 1%, 1.4%, 1.6% and 1%, respectively.
The fear-gauge CBOE Volatility Index (VIX) was down 8.4% to 15.77. A total of 13.85 billion shares were traded on Wednesday, lower than the last 20-session average of 15.32 billion. Advancers outnumbered decliners on the NYSE by a 2.74-to-1 ratio. On Nasdaq, a 2.06-to-1 ratio favored advancing issues.
ADP reported that private sector payrolls in January increased 183,000 jobs, higher than 176,000 jobs of December. All jobs were created by services sector adding 190,000 manpower. On the other hand, the good producers retrenched 6,000 workers. Pay for workers who stayed in their jobs grew at a 4.7% annual rate in January, marking 0.1% more than in December.
The Institute of Supply Management reported that services PMI (purchasing managers’ index) for January came in at 52.8%, missing the consensus estimate of 54.3%. The metric for December was revised marginally downward to 54% from 54.1% reported earlier. Any reading above 50% indicates expansion of services activities.
