NEW YORK (TheStreet) -- U.S. stock indices settled near the flat line Wednesday, with the S&P 500 finishing above its 100-day moving average and fueling hopes of another near-term pop.
The broad-based index had been flirting with the widely watched 1910 support level all day after investors were faced with negative geopolitical and economic news and speculation of an earlier-than-expected interest rate hike.
"We have come down here over the past three or four sessions. By successfully holding these levels again ... we're probably headed for a short-term rally," said Peter Cardillo, chief market economist at Rockwell Global Capital.The Dow Jones Industrial Average was up 0.08% to 16,443.34. The S&P 500 was flat at 1,920.24. The Nasdaq was up 0.05% to 4,355.05. Key sectors finished mixed. Financials, basic materials, consumer staples and energy closed higher as Bank of America (BAC) surged 1.33% to $15.20 after the company increased its quarterly common stock dividend to 5 cents a share from 1 cent. Countercyclical groups such as telecom services and utilities trailed the broader market as AT&T (T) retreated 1.4% to $34.62. Telecom M&A excitement died down Wednesday after Sprint (S) indicated that it would end its run at T-Mobile (TMUS). Time Warner (TWX) shares tumbled 12.85% to $74.24 Wednesday as Rupert Murdoch's 21st Century Fox (FOXA) withdrew its $80 billion cash-and-stock acquisition offer. Fox on the other hand popped 3.29% to $32.33. Factory orders have been suffering in Europe's largest economy, a situation that Berlin's Economics Ministry blames on geopolitical developments and risks. These factors have led to a "certain holding back" on orders. Elsewhere, the eurozone's third-largest economy, Italy, slumped back into a recession during the second quarter. GDP was down 0.2% from the first quarter. Read More: European and Asian Stocks Retreat on Rising Russia-Ukraine Worries News that Russia has amassed 20,000 combat-ready troops -- reportedly special forces as well as troops with armor, artillery and air defense capabilities -- on its eastern border with Ukraine raised concerns about imminent military intervention Wednesday. Federal Reserve Bank of Dallas president Richard Fisher told Fox Business Network Tuesday evening that the central bank could hike interest rates earlier than the widely expected mid-2015 target if U.S. economic data continue to strengthen. The Census Bureau reported on Wednesday that the U.S. trade deficit shrank to $41.5 billion in June, compared with the average estimate of $45.2 billion. Read More: Aug. 6 Premarket Briefing: 10 Things You Should Know -- By Andrea Tse in New York Follow @AndreaTTse
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV