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Midday Update: U.S. Stocks Reverse Early Losses as Powell Soothes Wall Street


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U.S. stocks perked up at Tuesday's open as Fed chairman Jerome Powell reassured Wall Street the Fed will maintain its agenda of gradual rate hikes, and economic data pointed to continued modest growth in the manufacturing sector. Led by gains in component stock Johnson & Johnson ( JNJ ), the Dow Jones Industrial Average is trading higher for a fourth consecutive day.

U.S. stock futures were trading defensively overnight when disappointing subscriber growth from Netflix ( NFLX ) coupled with Monday's selling frenzy in the energy complex and Powell's upcoming Humphrey-Hawkins testimony to the Senate Banking Committee rattled investors and drove Dow futures to Monday's low.

Earnings failed to impress Wall Street with lackluster equity trading revenue from Goldman Sachs ( GS ) and lowered revenue guidance from J&J fueling early losses. J&J bounced back to lead Dow advancers, while Goldman continued to lose ground and fall further into negative territory.

Data released this morning included as as-expected increase in June industrial production of 0.6%, and a slight gain in capacity utilization to 78.0 from May's revised 77.7.

The NAHB housing market index was flat in July at 68, matching expectations.

Europe's major exchanges locked in modest gains at the close in concert with a rebound on Wall Street. Germany's Dax outperformed with a strong 0.80% gain led by Thyssenkrupp and Allianz.

Crude oil was down $0.57 to $67.49 per barrel. Natural gas was down $0.02 to $2.74 per 1 million BTU. Gold was down $12.10 to $1,227.60 an ounce, while silver was down $0.19 to $15.62 an ounce. Copper was down $0.01 to $2.75 per pound.

Among energy ETFs, the United States Oil Fund was up 0.06% to $13.95 with the United States Natural Gas Fund was down 1.09% to $22.16. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was down 0.27% to 21.77 while SPDR Gold Shares were down 1.09% to $116.26. The iShares Silver Trust was down 1.08% to $14.69.

Here's where the markets stand at mid-day:

U.S. MARKETS

NYSE Composite Index was up 27.29 points (+0.21%) to 12,776.06

Dow Jones Industrial Index was up 65.49 points (+0.26%) to 25,129.85

S&P 500 was up 8.08 points (+0.29%) to 2,806.28

Nasdaq Composite Index was up 41.47 points (+0.53%) to 7,848.05

GLOBAL SENTIMENT

FTSE 100 was up 25.88 points (+0.34%) to 7,626.33

DAX was up 100.52 points (+0.80%) to 12,661.54

CAC 40 was up 13.11 points (+0.24%) to 5,422.54

Nikkei 225 was up 100.01 points (+0.44%) to 22,697.36

Hang Seng Index was down 357.98 points (-1.25%) to 28,181.68

Shanghai China Composite Index was down 15.42 points (-0.55%) to 2,798.62

NYSE SECTOR INDICES

NYSE Energy Sector Index was down 48.71 points (-0.40%) to 12,026.58

NYSE Financial Sector Index was up 5.15 points (+0.07%) to 7,971.50

NYSE Healthcare Sector Index was up 63.23 points (+0.45%) to 14,975.27

UPSIDE MOVERS

(+) AMRH (+55.10%) Wins first project with Mednax ( MD ) to implement robotic automation solution

(+) CDMO (+24.39%) Reported better-than-expected Q4 results

(+) CLRB (18.43%) Cancer study patient achieves 94% tumor volume reduction

(+) GBR (+17.78%) NYSE grants extension to regain compliance

DOWNSIDE MOVERS

(-) AVEO (-17.72%) Shifts TIVO-3 topline data for renal cancer to Q4

(-) HZN (-13.83%) Seeking to amend credit agreement, guides Q2 revenue below expectations

(-) OMC (-9.05%) Beat Q2 EPS estimates but missed on revenue

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.



This article appears in: Investing , Stocks
Referenced Symbols: JNJ , NFLX , GS , MD



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