Here Are 3 Hot Things to Know About Stocks Right Now
Oil jumped after the Energy Information Administration said U.S. crude inventories plummeted by 10 million barrels last week, the largest drop in five weeks.
- The Dow Jones Industrial Average finished higher Wednesday as energy stocks led gainers as oil prices rose.
- The yield on the 30-year bond hit a new record low of 1.9072% on Wednesday, and recently traded at 1.943%.
- Shares of Tiffany (TIF) - Get Tiffany & Co. Report rose after the iconic jeweler reported second-quarter earnings that beat Wall Street forecasts.
Wall Street Overview
Stocks ended higher Wednesday as energy stocks led markets out of early session declines and helped investors look past signs from the bond market that pointed to a possible recession.
The Dow Jones Industrial Average rose 258 points, or 1%, to 26,036, the S&P 500 advanced 0.65%, and the Nasdaq rose 0.38%.
Brent crude contracts were up 89 cents at $59.92 a barrel, while West Texas Intermediate contracts, which are more tightly linked to U.S. gas prices, were $1.01 higher at $55.94 a barrel.
Pfizer (PFE) - Get Pfizer Inc. Report , UnitedHealth (UNH) - Get UnitedHealth Group Incorporated Report , and United Technologies (UTX) - Get United Technologies Corporation Report led the Dow's advance.
Gains were capped, however, by continued recession signals from the bond market that pushed stocks lower in Tuesday's session.
On Wednesday, the two-year Treasury yield was 1.504%, while the yield on the 10-year was at 1.469%. The inverted yield curve between the two-year and 10-year note often is seen as a warning sign about a recession. The 30-year yield hit a new record low of 1.9072% on Wednesday and was recently trading at 1.943%.
"News of tightening oil supplies certainly pumped some excitement into the Dow this morning," said Mike Loewengart, vice president of investment strategy at E*Trade. "When it comes to the yield curve, the inversion is certainly an unnerving indicator for investors. But taken in aggregate, it's just one of many data points we can look at when reviewing the economy. That said, there are more than a few signals showing sluggish growth and with GDP news on deck, this could be critical in evaluating if we're continuing on that path."
"The price of oil surged higher this morning due to the U.S.-Iranian tensions, since after the negative developments at the G7 meeting in France, a deal on the Persian country's nuclear program seems unlikely," said Ken Berman, Gorilla Trades strategist. "The crucial commodity appreciated even more before midday as U.S. crude oil inventories declined by way more-than-expected, so the materials sector could lead the way higher in the afternoon."
Shares of Okta (OKTA) - Get Okta, Inc. Class A Report were down 1.4% to $133.17. The San Francisco-based identity and access management company is scheduled to report earnings after the bell. Okta is Real Money's Stock of the Day.
Hewlett Packard Enterprise (HPE) - Get Hewlett Packard Enterprise Co. Report rose 3.4% to $13.36 after the business-technology provider posted better-than-expected fiscal third-quarter earnings and raised its outlook for the year.
In Britain, the pound was falling after U.K. Prime Minister Boris Johnson will ask the Queen to "prorogue" - or suspend - Parliament as early as mid-September in a move that will reduce the time available to British lawmakers to block a no-deal Brexit.
"The already Brexit-battered pound has taken yet another hammering thanks to Boris Johnson's highly controversial suspension of parliament," said Nigel Green, chief executive and founder of deVere Group. "The pressure will remain on for the pound for the foreseeable future as the possibility of a no-deal Brexit increases. Should the UK leave with no deal, the pound is likely to remain weak for several years until the country and the bloc readjusts."
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