Here Are 3 Hot Things to Know About Stocks Right Now
Stocks finished higher after President Donald Trump said that a trade deal between the U.S. and China could happen soon, pushing back concerns about an impeachment probe into his presidency.
- The Dow Jones Industrial Average finished higher Wednesday after President Trump said that a trade agreement between the U.S. and China could happen soon, pushing back concerns about an impeachment probe into his presidency.
- Nike (NKE) - Get Report climbed as company posted stronger-than-expected first-quarter earnings thanks to solid sales growth in China and gains from its apparel business linked to the women's soccer World Cup.
Best Buy (BBY) - Get Report slipped after the electronics retailer lifted its near-term forecast for operating earnings growth ahead of its investment day Wednesday. Best Buy is Real Money's Stock of the Day.
Wall Street Overview
The Dow Jones Industrial Average finished up 163 points, or 0.61%, to 26,971, the S&P 500 advanced 0.62%, and the Nasdaq climbed 1.05%.
Trump said that a deal to end a nearly 15-month trade war with China could happen sooner than people think, Reuters reported.
"We've picked up trillions of dollars and they've lost trillions of dollars and they want to make a deal very badly," he said. "It could happen. It could happen sooner than you think."
The president's most recent remarks follow his address before the United Nations on Tuesday, when he accused China of failing to adopt promised reforms linked to its admission in the World Trade Organization in 2001.
Trump also met with Japanese Prime Minister Shinzo Abe Wednesday to try to reach an agreement on farm tariffs and digital trade.
Impeachment talk dominated much of Wednesday after the White House released a transcript of President Trump's phone call with Ukraine in which he asked Ukraine to "look into" former Vice President Joe Biden and his son.
House Speaker Nancy Pelosi on Tuesday announced a formal impeachment probe into Trump over a whistleblower complaint about Trump's actions in connection with Ukraine.
Trump's admission that he sought assistance from a foreign power to benefit him politically demonstrates "the President's betrayal of his oath of office, betrayal of our national security, and betrayal of the integrity of our elections," Pelosi said.
Trump took to Twitter Wednesday to defend himself, declaring that "there has been no President in the history of our Country who has been treated as badly as I have." He later demanded an apology from the Democrats after the transcript was released.
Trump met with Zelensky at the United Nations General Assembly in New York City Wednesday afternoon and Zelensky told reporters after that meeting that "nobody pushed me" in the phone call with Trump.
Stocks fell after the transcript were released, but turned around quickly after Trump announced a possible trade agreement with China.
"After the initial impeachment inquiry of Nixon in October 1973, the S&P 500 fell 33% the next year," said Ryan Detrick, senior market strategist for LPL Financial. "Compare that with the S&P 500 gaining 39% after the Clinton impeachment inquiry started in October 1998. The one major difference between those two times was the economy was headed into a vicious recession in the mid-'70s, while the economy was humming along in the late 1990s.
As long as the economy remains firm, Detrick said "we don't think the drama out of Washington will impact the staying power of this bull market."
"Markets have seen this impeachment movie before - so what if the House impeaches if the Senate will never remove the president from office?" asked Jamie Cox, managing partner for Harris Financial Group. "Markets are way more interested in a trade deal with China. Now that the Congress is deadlocked into impeachment, the President can close a deal with China to boost the global economy into 2020, just in time for ballots to be cast."
Nike (NKE) - Get Report shares climbed 4.2% to $90.80 as the world's biggest sports equipment company posted stronger-than-expected first-quarter earnings thanks to solid sales growth in China and gains from its apparel business linked to the women's soccer World Cup.
Philip Morris International (PM) - Get Report shares surged 5.2% to $75.30 after the world's biggest tobacco company said it had ended merger talks with Altria Group (MO) - Get Report as the two companies re-think their smokeless tobacco strategies.
Juul Labs said Wednesday that CEO Kevin Burns was stepping down effective immediately and will be replaced by K.C. Crosthwaite. Shares of Altria, which invested $12.8 billion in Juul, were down slightly to $40.47.
Shares of Best Buy (BBY) - Get Report were off slightly to $67.45 after the electronics retailer lifted its near-term forecast for operating earnings growth ahead of its investment day Wednesday. Best Buy is Real Money's Stock of the Day.
eBay (EBAY) - Get Report said President and CEO Devin Wenig is stepping down as head of the online auction company. Scott Schenkel, who was most recently eBay's senior vice President, chief financial officer, was named interim CEO. Shares were down nearly 1% to $39.24.
Marathon Petroleum (MPC) - Get Report shares surged 8.4% to $60.15 after activist investors at Elliott Management said the independent oil refining company should be split into three separate companies.
U.S. commercial crude oil inventories for the week of Sept. 20 increased by 2.4 million barrels from the previous week, the Energy Information Administration said Wednesday. Analysts had expected a decline of 6.5 million barrels for the week to September 20.
The EIA also said that following the Saudi attacks, the average U.S. retail gasoline price rose by more than 10 cents per gallon between September 16 and September 23. This was the largest weekly increase in gas prices since early September 2017, when gas prices jumped by 28 cents per gallon in one week following Hurricane Harvey.
Reuters reported Wednesday that Saudi Aramco has restored Saudi Arabia's oil production capacity to the levels before the September 14 drone attacks on two key Saudi Arabian oil facilities.
Brent crude contracts were down 65 cents to $61.47 a barrel, while West Texas Intermediate contracts, which are more tightly linked to U.S. gas prices, were off 76 cents to $56.53 a barrel.
In economic news, new home sales increased 7.1% to a seasonally adjusted annual rate of 713,000 units in August, the Commerce Department said, spurred by a surge in activity in the South and West. July's sales pace was revised up to 666,000 units from the previously reported 635,000 units.
Save 57% During Our Fall Sale. Join Jim Cramer's Action Alerts PLUS investment club to become a smarter investor. Click here to sign up and save!