Stocks ended mixed Wednesday as investors looked to claw back the previous session's declines while tracking debt-ceiling negotiations and the rolling global power crisis.
The Dow Jones Industrial Average, which turned negative for the month after Tuesday's 570-point slump, finished up 90 points, or 0.26%, to 34,390 while the S&P 500 advanced 0.16%. The tech-heavy Nasdaq ended down 0.24%.
Benchmark 10-year note yields slipped to 1.53% after touching a high of 1.567% Tuesday.
Democrats scheduled a House vote to raise the debt ceiling and are preparing a separate spending bill to head off a government shutdown looming at midnight on Thursday, according to the New York Times.
Louis Navellier, founder and chief investment officer of Navellier & Associates, said political wrangling surrounding infrastructure spending and the failure to reach a deal — any kind of deal — could have a drag on the markets during the fourth quarter.
“Over the last 20 years, the Dow Jones Industrials gained 4.5% in the fourth quarter versus a cumulative 1.2% gain in the first three quarters combined, according to Bespoke Investment Group, but that adverse conditions in Washington in 2021 could challenge this track record,” he said.
JPMorgan (JPM) - Get JPMorgan Chase & Co. (JPM) Report Chief Executive Jamie Dimon said he and his colleagues were preparing for a "potentially catastrophic" failure to raise the debt ceiling this week. Senate lawmakers continue to bicker into the final hours ahead of tomorrow's deadline.
Boeing (BA) - Get Boeing Company Report led the Dow after the aerospace giant said a 737 Max test in China last month "went off without a hitch." That could provide authorities with enough data to return the aircraft to service in the world's biggest aviation market.
Micron (MU) - Get Micron Technology, Inc. (MU) Report shares fell after one of the world's biggest memory chipmakers said supply-chain disruptions in the tech sector would hit its current-quarter sales. Analysts at JPMorgan and Mizuho last week cut their price targets on the company.
Dollar Tree (DLTR) - Get Dollar Tree, Inc. Report surged the most in more than two years Wednesday after the discount retailer said it would begin testing the sale of higher-priced items in some of its stores and boosted its share buyback program to $2.5 billion.
West Texas Intermediate oil futures for November delivery were off marginally to $74.66 a barrel while Brent contracts for the same month, the global pricing benchmark, were down nearly 1% lower at $78.66 per barrel.
Morgan Stanley said in a report that Brent crude at $80 a barrel would be “destructive” to demand.
"Oil prices have disconnected from the marginal cost of supply. They are traveling to the level where demand destruction kicks in," Morgan Stanley said.