Major Averages Close Mixed For Fourth Consecutive Session
The major U.S. stock indexes once again moved in opposite directions during trading on Tuesday, closing mixed for the fourth consecutive session. While the Nasdaq extended the sharp pullback seen in the previous session, the Dow and the S&P 500 moved to the upside.
The Nasdaq climbed well off its worst levels of the day but still closed down 79.62 points or 0.5 percent at 15,775.14. Meanwhile, the Dow climbed 194.55 points or 0.6 percent to 35,813.80 and the S&P 500 rose 7.76 points or 0.2 percent at 4,690.70.
The tech-heavy Nasdaq pulled back further off the record intraday high set in early trading on Monday, as a continued increase in treasury yields weighed on high-growth tech stocks.
Yields have moved notably higher since President Joe Biden announced his intention to nominate Jerome Powell for a second term as Fed Chair.
While Biden also intends to nominate current Fed Governor Lael Brainard as Vice Chair, she was seen as a potentially more dovish alternative to Powell.
With the upward move on the day, the yield on the benchmark ten-year note ended the session at its highest closing level in a month.
On the other hand, the Dow benefited from strong gains by financial giants Goldman Sachs (GS) and JPMorgan Chase (JPM).
Overall trading activity was somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines ahead of the release of a slew of reports on Wednesday.
Some traders may also be looking to get a head start on the Thanksgiving Day holiday, as the markets will be closed on Thursday and open for just a half-day on Friday.
Sector News
Energy stocks saw substantial strength on the day, regaining ground amid a continued rebound by the price of crude oil. Crude for January surged up $1.75 to $78.50 a barrel.
Reflecting the strength in the energy sector, the Philadelphia Oil Service Index spiked by 3.7 percent, the NYSE Arca Oil Index shot up by 3 percent and the NYSE Arca Natural Gas Index jumped by 2 percent.
Considerable strength also emerged among banking stocks, as reflected by the 1.6 percent gain posted by the KBW Bank Index.
Steel and brokerage stocks also saw notable strength on the day, while significant weakness was visible among gold, software and airline stocks.
Other Markets
In overseas trading, stock markets across the Asia-Pacific region turned in a mixed performance on Tuesday, with the Japanese markets closed for a holiday. China’s Shanghai Composite Index rose by 0.2 percent, while Hong Kong’s Hang Seng Index tumbled by 1.2 percent.
Meanwhile, European stocks moved mostly lower over the course of the session. The German DAX Index slumped by 1.1 percent and the French CAC 40 Index slid by 0.9 percent, although the U.K.’s FTSE 100 Index bucked the downtrend and inched up by 0.2 percent.
In the bond market, treasuries extended the notable pullback seen in the previous session. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, is up by 3 basis points at 1.655 percent.
Looking Ahead
Following a quiet day on the U.S. economic front, trading on Wednesday may be impacted by reaction to a slew of data.
Traders are likely to keep an eye on reports on weekly jobless claims, durable goods orders, new home sales and personal income and spending as well as the minutes of the latest Fed meeting.
On the earnings front, Dell (DELL), Gap (GPS) are HP Inc. (HPQ) are among the companies releasing their quarterly results after the close of today’s trading.
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