The U.S. stock market has bounced back from a two-day shellacking with shares of Boeing ( BA ) and upbeat U.S. economic data driving the Dow Jones Industrial Average up by more than 100 points.
And while healthcare shares continue to lose ground after Tuesday's announcement by JP Morgan ( JPM ), Amazon ( AMZN ) and Berkshire Hathaway (BRK.A, BRK.B) to form a joint healthcare company and President Donald Trump's pledge to lower drug prices, losses have been offset by solid gains in industrial, financial and technology shares.
Wall Street's major averages were gaining ground in premarket trade on Tuesday night's State of the Union address in which the president called on Congress to approve at least $1.5 trillion in infrastructure spending, and made assurances to orchestrate U.S.-friendly trade deals.
Gains accelerated after Boeing crushed Wall Street's expectations thanks to a lower tax rate and stellar deliveries of its 737 aircraft, and private payrolls increased to a significantly higher-than-expected 234,000 in January.
The Dow surged to a 250-point gain at the open, but scaled back by 100 points as investors nervously eyed the meteoric rise in the yield of the 10-year Treasury note -- which set a near 4-year high of 2.739% at the open -- and the upcoming Federal Open Market Committee statement at 2pm ET. Although the Fed is not expected to adjust monetary policy, Fed Chair Janet Yellen's last Fed meeting could offer her the opportunity to be more candid about the trajectory of interest rates in 2018.
European bourses were mostly lower, with the exception of France's CAC-40, as a result of soft Chinese manufacturing and German retail sales data. The greater-than-expected reversal in German retail sales upstaged a lower jobless rate, and along with a stronger euro, contributed to a small loss in the German Dax.
Crude oil was down $0.13 to $64.37 per barrel. Natural gas was down $0.22 to $2.98 per 1 million BTU. Gold was up $5.20 to $1,345.90 an ounce, while silver was up $0.18 to $17.24 an ounce. Copper was up $0.02 to $3.20 per pound.
Among energy ETFs, the United States Oil Fund was up 0.27% to $12.94 with the United States Natural Gas Fund was down 6.05% to $25.15. Amongst precious-metal funds, the Market Vectors Gold Miners ETF was up 0.33% to 23.51 while SPDR Gold Shares were up 0.37% to $127.27. The iShares Silver Trust was up 0.85% to $16.28.
Here's where the markets stand at mid-day:
NYSE Composite Index was up 0.63 points (+0.00%) to 13,376.14
Dow Jones Industrial Index was up 120.86 points (+0.46%) to 26,197.75
S&P 500 was up 2.68 points (+0.10%) to 2,825.19
Nasdaq Composite Index was up 13.50 points (+0.19%) to 7,416.61
FTSE 100 was down 54.43 points (-0.72%) to 7,533.55
DAX was down 8.23 points (-0.06%) to 13,189.48
CAC 40 was up 8.15 points (+0.15%) to 5,481.93
Nikkei 225 was down 193.68 points (-0.83%) to 23,098.29
Hang Seng Index was up 279.98 points (+0.86%) to 32,887.27
Shanghai China Composite Index was down 6.50 points (-0.19%) to 3,481.51
NYSE SECTOR INDICES
NYSE Energy Sector Index was unchanged at 11,832.14
NYSE Financial Sector Index was up 11.68 points (+0.14%) to 8,626.39
NYSE Healthcare Sector Index was down 152.29 points (-1.00%) to 15,110.88
(+) CASC (+72.03%) Agreed to $614 million acquisition by Seattle Genetics ( SGEN )
(+) KONE (+34.18%) Disclosed the sale of 617K shares and 282K ADSs to Redstone YYL Mgmt for $1.9 mln
(+) SFLY (+19.79%) Beat Q4 earnings, issued strong FY18 guidance, agreed to acquire Lifetouch for $825 million
(+) EA (+7.61%) Fiscal Q3 revenue beats expectations
(-) BLCM (-28.65%) Clinical hold placed on BPX-501
(-) MYSZ (-13.75%) Priced 3 million public stock and warrant offering at 16.6% discount
(-) JNPR (-9.60%) Issued Q1 guidance below estimates
(-) SYRS (-9.47%) Prices stock offering at 8.6% discount
Copyright (C) 2016 MTNewswires.com. All rights reserved. Unauthorized reproduction is strictly prohibited.