Stocks added gains on Wednesday in a broad-based rally as investors went on a buying spree. Spurred by data released showing US manufacturing had its best year since 2014 expanding in December at its quickest pace in three months.
The Federal Reserve released minutes from its December meeting showing consensus for gradual rate hikes in 2018 and dissent on how many. The Federal Open Markets Committee minutes showed economic projections by Fed members and stated: "The Committee expects that economic conditions will evolve in a manner that will warrant only gradual increases in the federal funds rate."
he central bank said it would be largely accomodative in determing size and timing of future adjustments to its target range for the fed rate. On the commodities front, oil soared to its highest since December 2014. West Texas Intermediate oil for February delivery rose $1.26 at $61.63 a barrel. Gold slipped from its four-month high on Tuesday down 0.2% to $1,315.24 an ounce.
The Dow jumped +0.40% to a record high. NASDAQ rose +0.84% to another record high. The S&P 500 cruised past 2,700 barrier for the first time and finished up +0.64% powered by technology gains. The sector advanced +1.09%. Energy rose +1.53%. The biggest movers on the market-weighted index was electricity and natural gas company, Scana, up +22.59% on news that rival Dominion Energy (-3.85%) would buy it. Ulta Beauty rose +6.75% and Nvidia was up +6.58%. Other leading tech issues was Advanced Micro Devices up +5.19%.
(4:05 PM EST)
- Dow 24,922.68 +0.40%
- S&P 500 2,713.07 +0.64%
- NASDAQ 7,065.53 +0.84%
- Russell 2000 1,552.41 +0.16%
- NYSE Composite 12,958.66 +0.43%
- Gold 1,316.0 -0.01%
- Oil WTI $61.79 +2.35% (3:58PM EDT)
- 10-Year Treasury 2.446 +0.14%
Intel plunged in early trading on reports that its chip had a special design flaw that meant a slowdown in computers that used it of up to 50%. However, the company rebutted claims calling them inaccurate and said the flaw was present in other chips. Intel closed down -3.39%.
American Express is the latest company to announce that changes from the tax law will impact fourth quarter earnings by $2.4 bn and will end in a net loss reported Bloomberg. The company closed up +0.62% at close.
Political news slightly overshadows good economic news as squabbling between President Trump and his former adviser, Steve Bannon hits the skids following the Guardian release of book excerpts. The book written by Michael Wolff claimed Bannon called a meeting between Russians and Trump's senior advisers, which comprised Trump's son-in-law Jared Kushner, his son Donald Trump Jnr and Paul Manafort, as "treasonous" and "unpatriotic".
Concluding our market summary with Trump's to-the-point quote about Bannon in response: "When he was fired, he not only lost his job, he lost his mind.”