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Major Averages Finish Choppy Trading Session Modestly Higher - US Commentary

WASHINGTON (Alliance News) - After moving higher over the two previous sessions, stocks showed ...

Alliance News 13 September, 2017 | 9:21PM
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WASHINGTON (Alliance News) - After moving higher over the two previous sessions, stocks showed a lack of direction throughout the trading day on Wednesday. The major averages spent the day bouncing back and forth across the unchanged line.

The major averages eventually ended the session modestly higher, reaching new record closing highs. The Dow rose 39.32 points or 0.2% to 22,158.18, the Nasdaq inched up 5.91 points or 0.1% to 6,460.19 and the S&P 500 edged up 1.89 points or 0.1% to 2,498.37.

The choppy trading on Wall Street came as traders expressed some uncertainty about the near-term outlook for the markets following recent strength.

Traders also stuck to the sidelines ahead of the release of some key economic data over the next couple days.

Reports on consumer prices and weekly jobless claims are due to be released on Thursday, while data on retail sales, industrial production and consumer sentiment is scheduled for Friday.

A report released by the Labor Department this morning showed producer prices rose by slightly less than expected in the month of August.

The Labor Department said its producer price index for final demand edged up by 0.2% in August after slipping by 0.1% in July. Economists had expected the index to climb by 0.3%.

Excluding food and energy prices, core producer prices inched up by 0.1% in August after dipping by 0.1% in July. Core prices had been expected to rise by 0.2%.

Traders also kept an eye on Washington, where House Speaker Paul Ryan, R-Wis., revealed Republicans will release an outline of their tax reform plan the week of September 25th.

Speaking to reporters, Ryan said the outline will represent a consensus between the House Ways And Means Committee, the Senate Finance Committee, and the Trump administration.

Ryan said the tax writing committees would take feedback and input on the outline and then produce their bills in the weeks ahead.

Sector News

Most of the major sectors ended the day showing only modest moves, contributing to the lackluster close by the broader markets.

Energy stocks saw considerable strength, however, with an increase by the price of crude oil generating buying interest. Crude oil for October delivery jumped USD1.07 to USD49.30 a barrel.

Reflecting the strength in the energy sector, the Philadelphia Oil Service Index and the NYSE Arca Natural Gas Index surged up by 2.3% 1.9%, respectively.

On the other hand, gold stocks showed a notable move to the downside, moving lower along with the price of the precious metal.

With gold for December delivery sliding USD4.70 to USD1,328 an ounce, the NYSE Arca Gold Bugs Index slumped by 1.5%.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance during trading on Wednesday. Japan's Nikkei 225 Index climbed by 0.5%, while Hong Kong's Hang Seng Index fell by 0.3%.

The major European markets also ended the day mixed. While the UK's FTSE 100 Index dipped by 0.3%, the German DAX Index and the French CAC 40 Index both rose by 0.2%.

In the bond market, treasuries moved to the downside, extending a recent downward trend. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 2.4 basis points to 2.195%.

Looking Ahead

Trading on Thursday may be impacted by reaction to reports on consumer price inflation and weekly jobless claims.

Copyright RTT News/dpa-AFX

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