US Markets

Wall Street rebounds as financial shares gain

Credit: REUTERS/ANDREW KELLY

Gains in financial shares helped U.S. stocks reverse early losses on Wednesday, although investors were guarded amid worries about a recession and trade tensions between the United States and China.

By Akanksha Rana

Aug 28 (Reuters) - Gains in financial shares helped U.S. stocks reverse early losses on Wednesday, although investors were guarded amid worries about a recession and trade tensions between the United States and China.

The financial sector .SPSY was up 0.88%, clawing back some of the losses from the previous session that was triggered by a deepening of the U.S. Treasury yield curve inversion, widely considered as a harbinger of a slowdown. US/

Gains in the benchmark S&P 500 index .SPX were also supported by a 1.44% jump in energy .SPNY stocks after industry data showed a fall in stockpiles of U.S. crude, boosting oil prices.

Oil majors Chevron Corp CVX.N and Exxon Mobil Corp XOM.N rose nearly 1%. O/R

"It's the last real vacation week of the year in terms of summer so there are not a lot people around. You are also not seeing any new reasons in the overnight for people to sell the market," said Peter Kenny, founder of Kenny's Commentary LLC and Strategic Board Solutions LLC in New York.

Investors are also awaiting the monthly jobs report and manufacturing data next week to gauge the pace of interest rate cuts.

The U.S. Trade Representative's office on Wednesday also reaffirmed President Donald Trump's plans to impose an additional 5% tariff on a $300 billion list of Chinese imports starting on Sept. 1 and Dec. 15.

At 11:52 a.m. ET, the Dow Jones Industrial Average .DJI was up 191.68 points, or 0.74%, at 25,969.58, the S&P 500 .SPX was up 16.52 points, or 0.58%, at 2,885.68. The Nasdaq Composite .IXIC was up 31.72 points, or 0.41%, at 7,858.67.

Technology stocks slipped 0.1%, pressured by declines in shares of Microsoft Corp MSFT.O and Autodesk Inc ADSK.O.

Shares of the AutoCAD software maker slumped 9%, the most on the S&P 500, after the company cut its full-year earnings forecast.

Coty Inc COTY.N rose 4.5% after the cosmetics maker raised its full-year revenue forecast, betting on a multi-year turnaround plan that involves increased investments in advertising and cost cuts.

Shares of Hewlett Packard Enterprise Co HPE.N added 3.8% after the company beat profit estimates and raised its 2019 adjusted earnings forecast.

Advancing issues outnumbered decliners by a 2.91-to-1 ratio on the NYSE and by a 2.64-to-1 ratio on the Nasdaq.

The S&P index recorded seven new 52-week highs and 38 new lows, while the Nasdaq recorded 19 new highs and 134 new lows.

(Reporting by Akanksha Rana and Shreyashi Sanyal in Bengaluru; Editing by Anil D'Silva and Arun Koyyur)

((akanksha.rana@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1130;))

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

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