Nasdaq provides leadership with support from Apple
U.S. stocks rose on Wednesday, 10 September 2014 at Wall Street bouncing back from morning losses, as Apple and other tech stocks helped lead the way higher. The stock market ended the midweek session on an upbeat note with the Nasdaq Composite providing leadership.
The Dow Jones Industrial Average added 54.84 points, or 0.3%, to 17,068.71. The Nasdaq Composite gained 34.24 points, or 0.8%, to finish at 4,586.52. The S&P 500 SPX, rose 7.25 points, or 0.4%, to close at 1,995.69.
While traders said while there was no single explanation for the turnaround, the market got a lift from Apple's 3.1% jump and after a new poll showing a majority of Scots favor remaining in the U.K. Investors have worried about Scotland potentially becoming independent after a poll over the weekend put those favoring independence ahead for the first time.
AMong other tech stocks, Twitter rallied 4.5% following an upgrade at UBS, while Facebook and Yelp gained 1.0% and 2.2%, respectively.
It has not been an active week on the world economic reports front, which has kept many markets quieter. Traders and investors are already looking ahead to next week's U.S. FOMC monetary policy meeting.
Things are also quieter on the geopolitical front this week. The Russia-Ukraine cease-fire is holding up. Reports Wednesday quoted the Ukrainian president as saying most Russian troops have now pulled away from the Russia-Ukraine border.
In overnight news, the German government auctioned 10-year notes for a record low yield of 1.05% Wednesday, and demand for the notes was very strong. The weak European Union economy and Euro currency, as well as recent geopolitical concerns, have boosted demand for the safer-haven German sovereign debt.
Economic data at Wall Street was limited to just two data points. The weekly MBA Mortgage Index fell 7.2% to follow last week's uptick of 0.2%. Wholesale inventories increased 0.1% in July following a downwardly revised 0.2% (from 0.3%) increase in June The consensus expected an increase of 0.5%. Overall, wholesale sales increased 0.7% in July after increasing by 0.4% in June 2014.
Treasuries slumped overnight and spent the duration of the session near their lows. The 10-yr note shed eight ticks to send its yield higher by three basis points to 2.54%.
Participation was a bit light with fewer than 600 million shares changing hands at the NYSE floor.
Bullion prices finished in mixed mode on Wednesday, 10 September 2014 at Comex. Gold prices fell for a third session on Wednesday and fell to another three-month low as investors awaited more clues on the Federal Reserve's stance on the monetary policy.
Gold for December delivery shed $3.20, or 0.3%, to $1,245.30 an ounce. December silver edged up a penny to $18.86 an ounce.
Crude-oil futures ended Wednesday, 10 September 2014 at an eight-month low after OPEC reduced its expectations for demand of its own oil. A stronger dollar also helped keep prices under pressure, while the weekly U.S. supply report showed crude inventories falling as much as expected. Crude for delivery in October retreated $1.08, or 1.2%, to settle at $91.67 a barrel on the New York Mercantile Exchange.
EIA reported on Wednesday that U.S. crude-oil supplies declined by 1 million barrels in the week ended 5 September 2014. That met expectations. The EIA also reported gasoline stockpiles were up 2.4 million, and distillates inventories rose 4.1 million barrels. Market had expected gasoline stocks to be unchanged and distillate stocks to rise by 400,000 barrels.
Tomorrow, weekly initial claims (consensus 300K) will be released at 8:30 ET, while the Treasury Budget for August (expected deficit of $129 billion) will cross the wires at 14:00 ET.
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