Health care and utilities posted the biggest sector gains
US stocks ended sharply higher once again on Wednesday, 26 June 2013. Stocks jumped on Wednesday, pulling benchmark indexes into positive terrain for the week, as a revision in economic growth calmed concern about U.S. monetary policy.
For the day, the Dow Jones Industrial Average jumped as much as 178 points, and finished with a gain of 149.83 points, or 1%, at 14,910.14. The Nasdaq Composite added 28.34 points, or 0.9%, to 3,376.22. The S&P 500 climbed 15.23 points, or 1%, to 1,603.26.
Health care and utilities led the gains among the 10 major industry groups.
European Central Bank President Mario Draghi said Wednesday the ECB will keep its monetary policy accommodative for the near future. Draghi's statement echoed other major central bank officials who earlier this week made more dovish remarks. There is some speculation in the market place that Fed Chairman Ben Bernanke believes the market place misinterpreted the results of last week's FOMC meeting as too hawkish.
The U.S. dollar index, which weighs the strength of the dollar against a basket of six other currencies, rose by 0.7% on Wednesday.
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Among latest economic data expected at Wall Street, it indicated first quarter GDP growth was revised down with the third estimate to 1.8% from 2.4%. Most of the downward revision came from consumption in services. In the previous estimate, services spending increased 3.1%. That was revised down to 1.7% growth and contributed 0.6 percentage points less to GDP growth.
Crude-oil prices ended little higher on Wednesday, 26 June 2013 at Nymex. Prices rose following a bearish weekly inventory report. But gains were restricted due to a strong dollar. Light and sweet crude for August ended higher by $0.18 (0.2%) at $95.5 a barrel on the New York Mercantile Exchange on Wednesday.
In the weekly inventory report, the EIA reported U.S. crude-oil supplies held steady for the week ended June 21 at 394.1 million barrels. Market had expected a 2 million-barrel decline. At this level, inventories were above the upper limit of the average range for this time of year. The EIA also reported that gasoline supplies rose by 3.7 million barrels, while distillate stockpiles increased by 1.6 million barrels, the EIA said. Gasoline stockpiles were expected to rise 1 million barrels, and forecasts also called for a rise of 1 million barrels for distillates.
Bullion metal prices ended substantially lower on Wednesday, 26 June 2013 at Comex. Gold and silver prices plummeted to nearly three-year lows as both markets saw weak-handed long liquidation and dollar rose. As the second quarter winds down, Comex gold and silver futures prices are set to see their poorest quarterly price performances ever recorded, on a percentage basis.
Gold for August delivery ended lower by $45.3 (3.6%) at $1,229.8 an ounce on the Comex division of the New York Mercantile Exchange on Wednesday. July silver ended lower by $0.94 (4.8%) at $18.59 an ounce on Wednesday.
For every stock falling, more than three gained on the New York Stock Exchange, where nearly 745 million shares traded. Composite volume approached 3.5 billion.
Indian ADRs ended lower on Wednesday. In the IT space, Infosys was down 0.02% and Wipro was down 0.4%. In the Banking space, HDFC Bank was down 0.9% and ICICI Bank was down 1.6%. In other space, Tata Motors was down 4%, and Sterlite was down 1.7%.
For tomorrow, the weekly initial claims, May personal income, personal spending, and core PCE prices will all be reported at 10:00 ET while the May pending home sales report will cross the wires at 10:00 ET.
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