Nasdaq, S&P 500 Climb To New Record Closing Highs - U.S. Commentary
(RTTNews.com) - Extending the upward trend seen in recent sessions, stocks moved mostly higher over the course of the trading session. The Nasdaq and the S&P 500 climbed to new record closing highs, while the Dow reached its best closing level in nearly seven months.
The major averages all closed in positive territory, although the Nasdaq outperformed its counterparts. While the Nasdaq jumped 79.65 points or 1 percent to 8,109.69, the S&P 500 climbed 16.52 points or 0.6 percent to 2,914.04 and the S&P 500 rose 60.55 points or 0.2 percent to 26,124.57.
The tech-heavy Nasdaq benefited from notable gains by Amazon (AMZN) and Google parent Alphabet (GOOGL), which surged up by 3.4 percent and 1.5 percent, respectively, after Morgan Stanley raised its price targets for both stocks.
The continued strength on Wall Street also reflected optimism about renewed trade talks between the U.S., Canada, and Mexico.
Canada rejoined the talks following President Donald Trump's announcement of a preliminary trade deal with Mexico on Monday.
In remarks to reporters on Tuesday, Canadian Foreign Affairs Minister Chrystia Freeland said "difficult" concessions by Mexico have set the stage for productive conversations in the coming days.
Freeland said she is due to engage into detailed discussions with U.S. Trade Representative Robert Lighthizer today.
On the U.S. economic front, the Commerce Department released a report showing economic activity grew by more than initially estimated in the second quarter.
The report said real gross domestic product climbed by 4.2 percent in the second quarter compared to the previously reported 4.1 increase. The pace of growth had been expected to be downwardly revised to 4.0 percent.
With the unexpected upward revision, the GDP growth in the second quarter reflects a significant acceleration from the 2.2 percent advance in the first quarter.
Meanwhile, a separate report from the National Association of Realtors showed an unexpected pullback in pending home sales in the month of July.
NAR said its pending home sales index dropped by 0.7 percent to 106.2 in July after jumping by 1.0 percent to an upwardly revised 107.0 in June. Economists had expected pending home sales to rise by 0.3 percent.
A pending home sale is one in which a contract was signed but not yet closed. Normally, it takes four to six weeks to close a contracted sale.
Biotechnology stocks turned in some of the market's best performances on the day, extending a recent upward trend. The NYSE Arca Biotechnology Index climbed by 1.3 percent to a new record closing high.
Significant strength also emerged among retail stocks, as reflected by the 1.2 percent gain posted by the Dow Jones Retail Index. The index also ended the session at its best closing level on record.
Energy stocks also saw considerable strength, moving higher along with the price of crude oil. Crude for October delivery jumped $0.98 to $69.51 a barrel following the release of a report showing a bigger than expected weekly drop in crude oil inventories.
On the other hand, tobacco stocks extended a recent move to the downside, dragging the NYSE Arca Tobacco Index down by 1.4 percent to a three-month closing low.
In overseas trading, stock markets across the Asia-Pacific region moved mostly higher during trading on Wednesday. Japan'sNikkei 225 Index and Hong Kong's Hang Seng Index both edged up by 0.2 percent, while Australia's S&P/ASX 200 Index advanced by 0.8 percent.
Meanwhile, the major European markets turned in a mixed performance on the day. While the U.K.'sFTSE 100 Index slid by 0.7 percent, the German DAX Index and the French CAC 40 Index both rose by 0.3 percent.
In the bond market, treasuries showed a lack of direction over the course of the session before closing roughly flat. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, ended the day unchanged at 2.884 percent.
Trading on Thursday may be impacted by any developments regarding the trade talks along with reaction to reports on weekly jobless claims and personal income and spending.
On the earnings front, Abercrombie & Fitch (ANF), Campbell Soup ( CPB ), Ciena (CIEN), Dollar General (DG), Dollar Tree (DLTR), and Sears Holdings (SHLD) are among the companies due to report their quarterly results before the start of trading on Thursday.
Read the original article on RTTNews (http://www.rttnews.com/2930469/nasdaq-s-p-500-climb-to-new-record-closing-highs-u-s-commentary.aspx)
For comments and feedback: contact firstname.lastname@example.org