US Stocks rise modestly on Wednesday

The US stocks market finished session near record highs after wobbling between small gains and losses on Wednesday, 02 June 2021, as investors cheered the latest evidence of a sustained rebound in global economics, with gains in shares of technology and energy companies helped to offset by losses in Communication, industrial, materials, retailers and other companies stocks that rely on consumer spending.

At the close of trade, the Dow Jones Industrial Average index advanced 25.07 points, or 0.07%, to 34,600. The S&P 500 index added 6.08 points, or 0.14%, at 4,208. The tech-heavy Nasdaq Composite Index rose 19.85 points, or 0.14%, to 13,756.

 

Total 6 out of 11 S&P 500 sectors closed up, with energy (up 1.74%) sectors being top gainer, followed by real estate (up 1.41%), information technology (up 0.62%), utilities (up 0.5%), and consumer staples (up 0.45%) sectors, while materials (down 0.94%) sector was worst performer, followed by consumer discretionary (down 0.4%), industrials (down 0.29%), healthcare (down 0.22%), and communication services (down 0.26%) sectors.

The strength on Wall Street partly reflected continued optimism about the outlook for the global economy following Tuesday's upbeat manufacturing data.

According to the latest US Beige Book, "the national economy expanded at a moderate pace from early April to late May, a somewhat faster rate than the prior reporting period

Trading activity remained relatively light, however, as traders seemed wary of making significant moves amid lingering concerns about inflation and ahead of the release of the closely watched Labor Department's monthly jobs report on Friday.

Etsy shares climbed up after the online crafts marketplace said it will buy Depop, an app that's popular among young people looking to buy and sell used clothing and vintage fashions from the early 2000s.

Crude oil prices were higher on Wednesday. Prices were supported by the latest decision by OPEC+ producers to show restraint in easing production curbs. Brent crude rose by US$1.10 or 1.6% to US$71.35 a barrel. And the US Nymex price rose by US$1.11 or 1.6% to US$68.83 a barrel - the highest level since October 2018.

In US economic data, chain store sales in the past week were up 13% on a year ago, compared with a 13.6% annual gain in the prior week. Mortgage applications fell 4% last week after falling 4.2% in the prior week. The IBD/TIPP economic optimism gauge rose from 54.4 to 56.4 in June.

Among Indian ADR, Tata Motors added 2.52% to $22.34, Wipro added 1.25% to $8.11, Vedanta added 1.8% to $15.31, and WNS Holdings added 1.3% to $76.40, INFOSYS added 0.1% to $19.29, and HDFC Bank added 0.51% to $76.42. ICICI Bank fell 0.06% to $17.94 and Dr Reddys Labs was down 0.54% to $72.39.

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