The U.S. stock market closed mixed on Wednesday despite upbeat
economic data and a dovish FOMC statement.
The advanced GDP estimate for the second-quarter came in much
better than expected and the central bank showed no signs that a
pullback in its quantitative easing program is imminent.
Nevertheless, stocks were mostly unchanged at the close.
The Dow Jones Industrial Average recorded a small loss, the
S&P was flat, and the Nasdaq finished the day with a small
The Dow Jones Industrial Average fell 21 points, or 0.13
percent, to 15,500.
The S&P 500 lost less than a point, or 0.01 percent, to
The Nasdaq rose around 10 points, or 0.27 percent, to
According to the advance estimate,
GDP rose 1.7 percent
in the second-quarter. This compares to a downwardly revised
reading of 1.1 percent in the first-quarter of 2013. The
consensus only expected GDP to advance 1.1 percent in the most
FOMC Rate Decision
Federal Reserve left interest rates unchanged
after a two-day FOMC meeting. The July FOMC statement also showed
that the central bank is not pulling back from its $85 billion
per month quantitative easing program. The Fed may begin tapering
the program later this year, however, if the economic recovery
picks up steam.
The Chicago PMI index improved in July, rising from 51.6 in
June to 52.3. The index showed that manufacturing activity in the
Chicago region has now expanded for three months in a row after
contracting in April. The consensus expected Chicago PMI to
decline slightly to 51.5.
Crude oil traded higher during Wednesday's session. At last
check, NYMEX crude futures had added a little better than 2
percent to $105.24. Brent crude contracts climbed 0.79 percent to
$107.75. Natural gas was last up 0.47 percent to $3.45.
In afternoon trade, precious metals were trading higher. COMEX
gold futures were last up 0.34 percent to $1,329.30 while silver
added 1.50 percent to $19.98. Copper futures jumped around 2.60
percent on the session to $3.1210.
The grains complex was mostly higher on Wednesday. Late in the
day, corn futures had climbed 0.31 percent while wheat was up
1.37 percent. Movers in soft commodities included coffee and
lumber. Coffee contracts were last down 1.41 percent while lumber
had lost 2.41 percent.
Fed bond buying on track.
Treasuries were slightly higher near the close after rising
throughout the day. At last check, the iShares Barclays 20+ Year
Treasury Bond ETF (NYSE:
) was up 0.34 percent to $107.68.
Yields were as follows on Wednesday afternoon. The yield on
the 2-Year Note was 0.31 percent while the 5-Year Note was
yielding 1.38 percent. The 10-Year Note and 30-Year Bond were
yielding 2.57 percent and 3.65 percent, respectively.
Heading into the close of equities, the U.S. Dollar was
slightly lower on the day. The PowerShares DB US Dollar Index
Bullish ETF (NYSE:
), which tracks the performance of the greenback versus a basket
of foreign currencies, was down 0.20 percent to $22.10.
The closely watched EUR/USD pair was last up 0.56 percent to
$1.3338. Other movers on the day included the USD/CAD, which fell
0.60 percent, and the AUD/USD, which was down 0.58 percent.
Is Herbalife still a buy?
Volatility and Volume
The CBOE Volatility Index (VIX) rose slightly on the session.
Late in the day, the widely watched barometer of market
volatility was up a little better than 1 percent to 13.54.
Volume remained lighter than normal, but above recent days on
Wednesday. Around 109 million SPDR S&P 500 ETF (NYSE:
) shares traded hands compared to a 3-month daily average of 135
Shares of Questcor Pharmaceuticals (NASDAQ:
) jumped around 27 percent on the day after the company
fiscal second-quarter financial results.
) delivered strong Q2 results and forward looking guidance,
sending the stock up around 20 percent in late trade.
Synchronoss Technologies (NASDAQ:
) added almost 15 percent on the day after the company's fiscal
Sodastream International (NASDAQ:
) delivered Q2 financial results which beat Wall Street profit
and sales estimates. Late in the day, the stock was trading up
almost 12 percent.
Strong fiscal first-quarter results from InvenSense (NYSE:
) sent shares higher by around 13 percent near the closing
) reported a second-quarter loss and adjusted earnings missed
Wall Street consensus estimates. In late trade, the stock was
down around 13 percent.
Shares of Riverbed Technology (NASDAQ:
) lost around 11 percent on Wednesday after the company .
) lost around 8 percent on Wednesday after reporting fiscal
second-quarter results that failed to meet analysts' estimates.
The company said that its North American commercial and
industrial businesses remained sluggish in the quarter.
) traded down around 7 percent on Wednesday after an unfavorable
court ruling which of so-called "swipe fees" on debit cards.
(c) 2013 Benzinga.com. Benzinga does not provide investment
advice. All rights reserved.
Profit with More New & Research
. Gain access to a streaming platform with all the information
you need to invest better today.
Click here to start your 14 Day Trial of Benzinga