Advertisements

Follow us on facebook


Small Caps Strong As Stock Market Repairs Damage

Small caps led the stock market higher in late morning action Wednesday. S&P 600 members clearing consolidations included G-III Apparel (GIII), manufactured homes builder Cavco Industries (CVCO) and watch marketer Movado Group (MOV).

X

The small-cap S&P 600 surged 1.3%, while the Nasdaq and the S&P 500 popped 0.9% and 1.1%, respectively. Blue chips in the 30-component Dow Jones industrial average were mostly up, with Exxon Mobil (XOM) and Chevron (CVX) up 2.5% and 2%, respectively. The Dow gained 1%.

Light sweet crude oil rose 0.76 to $67.49 a barrel — on track to end a five-session losing streak. (For updates on this story and other market coverage, check IBD’s stock market news today.)

News continued to plant uncertainties both for the reactions that news spurred and, in some cases, the lack of reaction.

Volcker Rule; China Eases Tariffs

The Federal Reserve is scheduled to meet at 3 p.m. ET. The Volcker rule will be on the agenda, and the Street expects the Fed to ease the rule, giving the major banks more freedom. The money-center stocks rose 0.7% but stayed within the previous session’s trading range.

Major banks haven’t shown much reaction to so-called good news this year. The stock group is down 6% in 2018.

In other news, China announced cuts in import duties on washing machines, cosmetics, shoes and drugs. The moves constitute China’s third wave of tariff reduction in six months. Beijing said the moves are aimed at increasing consumer choice and encouraging consumption.

Worries over Italy faded Wednesday as calmer heads prevailed. In a note to clients, Jefferies said major U.S. banks do not have much exposure to Italy and called the recent dip in major bank stocks a buying opportunity.

Financial News

The second reading on U.S. first quarter GDP rolled in at 2.2%, exactly as expected.

ADP reported that U.S. businesses added fewer workers in May than the Street estimated. The 178,000 job number reported was almost 5% lower than estimated.

RELATED:

Investor’s Corner: How To Invest In IPOs

Which Stocks Are Showing Relative Strength?

Reading Oil Trends Is Tough: A Long-Term Key

 

Source link

Advertisements

No comments.

Leave a Reply