By Anora M. Gaudiano and Victor Reklaitis, MarketWatch
Dick's Sporting Goods jumps, Michael Kors skids
U.S. stocks rose on Wednesday, with the main indexes recovering
half of the sharp losses from the previous session amid a run-up in
oil prices and energy-related shares.
Investors also appeared to shrug off the risk that Italy's
latest political drama posed to global markets, a day after news of
a possible election sent global markets reeling.
See:Italy's crisis may be a buying opportunity for stock
investors
(http://www.marketwatch.com/story/why-italys-crisis-could-be-a-buying-opportunity-for-stock-investors-2018-05-29)
What are the main benchmarks doing?
The Dow Jones Industrial Average rose 230 points, or 0.9%, to
24,581, following Tuesday's 392-point drop. Shares of Exxon Mobil
Corp. (XOM) and Chevron Corp. (CVX), were among the blue-chip
gauge's best performers amid reports that the oil producers led by
OPEC may not soon add ramp up output.
The S&P 500 added 28 points, or 1%, to 2,717 with all 11
main sectors trading higher. Energy shares led the gains, up 3%
thanks to rising oil prices. Health-care and financials shares were
up more than 1%.
The Nasdaq Composite advanced 62 points, or 0.8%, to 7,457.
The Russell 2000 index of small stocks hit an all-time high,
rising 23 points, or 1.5%, to 1,647.
A measure of volatility--Cboe Volatility Index fell 11% to
15.15, after spiking 29% on Tuesday.
What's driving markets?
Global equities and other so-called risk assets found their
footing Wednesday, as traders work out what Italy's politicians
might deliver next. Italy's stocks and bonds, as well as the euro,
are all in recovery mode.
A coalition government led by antiestablishment parties might be
in the cards again for Italy
(http://www.marketwatch.com/story/italys-antiestablishment-parties-revive-coalition-talks-reports-2018-05-30),
after it looked blocked
(http://www.marketwatch.com/story/italys-new-government-hits-wall-over-choice-of-euroskeptic-economic-minister-2018-05-27)
earlier in the week.
A Reuters report
(https://www.fxstreet.com/news/saudi-arabia-opec-and-non-opec-producers-to-continue-cooperation-until-end-of-2018-reuters-201805301453)indicated
that output cuts implemented by members of the Organization of the
Petroleum Exporting Countries and nonmembers led by Russia will
remain in place
(http://www.marketwatch.com/story/oil-prices-rally-on-reports-that-opec-will-keep-its-output-curbs-in-place-2018-05-30).
Prices had been pressured in recent sessions amid expectations that
OPEC would decide to lift production to help offset output losses
from Iran and Venezuela.
Read:What's the latest in Italy's political drama?
(http://www.marketwatch.com/story/whats-the-latest-in-italys-political-drama-2018-05-30)
What are strategists saying?
"The fact that the market is shrugging off Italy's political
drama suggests that maybe it was a crowded trade that was being
unwound and not something more serious," said Michael Antonelli,
equity sales trader at Robert W. Baird & Co.
Antonelli noted that recent spikes in volatility keeps reminding
market participants that in 2018 capital markets are very
fragile.
"Anything coming from the left field can shatter markets
nowadays, so we have to brace for a long summer grind," Antonelli
said.
What are other markets doing?
Italy's FTSE MIB stock benchmark was recently up about 2%
(http://www.marketwatch.com/story/italian-stocks-stage-recovery-bid-as-political-drama-rumbles-on-2018-05-30),
while the pan-European Stoxx Europe 600 Index edged up.
The euro rose to $1.1639
(http://www.marketwatch.com/story/euro-rebounds-from-10-month-low-as-italian-political-crisis-stays-in-focus-2018-05-30)
from $1.1541 late Tuesday in New York, helping to send the ICE U.S.
Dollar Index lower.
The yield on the 10-year Treasury note was around 2.84%. On
Tuesday, the U.S. benchmark rate tumbled 16 basis points to 2.77%
(http://www.marketwatch.com/story/treasurys-rally-pushing-down-yields-as-italy-turmoil-rocks-markets-2018-05-29),
in its largest one-day drop since the Brexit vote in June 2016.
Gold futures
(http://www.marketwatch.com/story/gold-slips-as-risk-on-trade-returns-to-favor-stocks-2018-05-30)
were inching up, while U.S. oil futures jumped.
Which stocks are in focus?
Shares in Salesforce.com Inc.(CRM)rose 3.4% after the maker of
software for customer relationship management posted quarterly
results and an annual outlook that beat forecasts
(http://www.marketwatch.com/story/salesforce-rises-after-hours-as-earnings-yearly-outlook-top-street-views-2018-05-29).
But Michael Kors Holdings Ltd.'s stock (KORS) skidded 9.5% after
the fashion house posted its results and signaled it remains open
to making acquisitions
(http://www.marketwatch.com/story/michael-kors-tops-estimates-ceo-still-open-to-acquisitions-2018-05-30).
HP Inc.'s stock (HPQ) was higher after the maker of computers
and printers posted a revenue beat late Tuesday
(http://www.marketwatch.com/story/hp-shares-fall-after-revenue-beat-2018-05-29),
but earnings just matched forecasts.
Dick's Sporting Goods Inc.(DKS)stock jumped 22%
(http://www.marketwatch.com/story/dicks-profit-jumps-as-gun-policy-has-muted-impact-2018-05-30)
after the retailer reported first-quarter earnings and revenue that
beat expectations and raised its guidance.
DSW Inc.(DSW) shares dropped 10%, pulling back from the previous
session's 2-year closing high, after the discount shoe and
accessories retailer reported better-than-expected fiscal
first-quarter earnings and revenue, while keeping its outlook
unchanged.
Which economic reports are on tap?
The U.S. added 178,000 private-sector jobs in May
(http://www.marketwatch.com/story/us-jobs-growth-continues-in-may-as-labor-market-tightens-adp-says-2018-05-30),
payrolls processor ADP said Wednesday. April's figure, meanwhile,
was reduced by 41,000 to 163,000.
Meanwhile, the first revision of the gross domestic product
(http://www.marketwatch.com/story/us-economy-grew-slightly-slower-22-in-first-quarter-revised-gdp-figures-show-2018-05-30)showed
the U.S. economy grew a touch softer in the first quarter than
originally reported, mainly because of a slower buildup in
inventories. GDP was trimmed to an annual 2.2% pace from 2.3%.
The trade gap in goods--
(http://www.marketwatch.com/story/us-trade-deficit-falls-slightly-in-april-2018-05-30)services
are excluded--fell 0.6% to $68.2 billion from $68.6.
Check out:MarketWatch's Economic Calendar
(http://www.marketwatch.com/economy-politics/calendars/economic)
The Federal Reserve's Beige Book is due for release at 2 p.m.
Eastern, but no Fed officials are slated to deliver speeches on
Wednesday.
--Barbara Kollmeyer contributed to this article
(END) Dow Jones Newswires
May 30, 2018 11:54 ET (15:54 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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