MARKET SNAPSHOT: U.S. Stocks Volatile After Fed Minutes, White House Political Turmoil
August 16 2017 - 3:12PM
Dow Jones News
By Sue Chang, MarketWatch , Ryan Vlastelica
Trump's decision to disband advisory panels contributing to
uncertainty
U.S. stocks were volatile on Wednesday after Federal Reserve
minutes suggested that the central bank is wrestling with sluggish
inflation but eager to commence an unwind of its $4.5 trillion
asset portfolio.Benchmarks tipped higher following the minutes but
have traded unsteadily, reflecting uncertainty about the strategic
path for the central bank and political tensions facing President
Donald Trump that could upend his pro-growth agenda.
The S&P 500 rose 2 points, or 0.1%, at 2,466, with the
materials sector leading gains, while energy, off 1.2%, and banks,
down 0.4%, led decliners.
The Dow Jones Industrial Average climbed 28 points, or 0.1%, to
22,029. If the Dow defends its gains to end positive, it will
extend its winning streak to a fourth session. Meanwhile, the
technology-laden Nasdaq Composite Index rose 8 points, or 0.1%, at
6,341.
The minutes from the Fed's meeting in July
(http://www.marketwatch.com/story/fed-eyes-september-debt-drawdown-some-want-patient-on-rates-2017-08-16)
showed that most Fed officials wanted to wait until the next
monetary meeting to unveil details on its planned unwinding of its
$4.5 trillion in bondholdings, indicating an announcement is
possible in September. The Fed also discussed the surprisingly low
inflation readings, with a few officials noting that the Fed could
be patient before raising interest rates again.
Stocks have skidded on Wednesday as President Trump disbanded a
pair of advisory panels
(http://www.marketwatch.com/story/trump-business-councils-disband-amid-wave-of-ceo-exits-2017-08-16)
following departures of corporate leaders after widespread
criticism over Trump's reaction and remarks to violence in
Charlottesville, Va., over the weekend.
(https://twitter.com/realDonaldTrump/status/897869174323728385)
The latest drama has sparked nervousness over the possible
derailment of Trump's economic agenda, including tax and regulatory
reforms, said Kent Engelke, chief economic strategist at Capitol
Securities Management.
Still, recent trading has had an upward bias, even given an
uncertain geopolitical environment that pressured stocks last week.
The Dow has risen in 13 of the past 16 sessions, excluding
Wednesday, and major indexes are within striking distance of record
levels.
Even news that housing starts fell 5.6% in July
(http://www.marketwatch.com/story/housing-starts-stumble-in-july-as-new-home-construction-churns-gradually-higher-2017-08-16)
isn't dragging on the market as the weak number is a result of
tight supply rather than weak demand, according to Engelke.
U.S. stocks closed mixed on Tuesday
(http://www.marketwatch.com/story/us-stocks-eye-opening-gains-as-north-korea-pulls-back-on-guam-threat-2017-08-15),
with the Dow average ending slightly higher for a third straight
session, though the S&P 500 index and Nasdaq Composite Index
finishing with small losses. The mixed session came after retail
sales beat forecasts and as tensions between the U.S. and North
Korea eased after Kim Jong Un decided not to launch a threatened
missile attack on Guam.
Stock movers:Target Corp. (TGT) rose 3.8% after the retailer
reported an increase in same-store sales
(http://www.marketwatch.com/story/target-sees-sales-growth-as-it-plans-store-refresh-2017-08-16-74853019)
and lifted its full-year adjusted profit outlook.
Shares of Urban Outfitters Inc.(URBN) soared 17% after the
retailer late Tuesday reported earnings that easily beat estimates
(http://www.marketwatch.com/story/urban-outfitters-shares-rally-after-sales-earnings-beat-2017-08-15).
Agilent Technologies Inc.(A) also reported profit above
forecasts
(http://www.marketwatch.com/story/agilent-shares-rise-more-than-4-after-company-reports-sales-eps-above-forecast-2017-08-15),
sending shares 4.3% higher as one of the biggest percentage gainers
among S&P 500 components.
Shares of Campbell Soup Co. (CPB) and 3M Co.(MMM) were both up
0.4% after chief executives of the two companies stepped down from
Trump's manufacturing initiative in protest over his failure to
denounce neo-Nazi and white supremacists who were the center of
chaos over the weekend.
In other earnings on Wednesday, Cisco Systems Inc.(CSCO) and
NetApp Inc. (NTAP) are scheduled to report after the market closes.
Both stocks were higher in midday trading.
Other markets:Asian markets closed mixed
(http://www.marketwatch.com/story/asian-markets-take-a-breather-after-early-week-rebound-2017-08-15),
while European stocks headed higher for a third straight day
(http://www.marketwatch.com/topics/columns/europe-markets).
The ICE Dollar Index reversed gains and gold rose following the
Fed minutes. Oil prices
(http://www.marketwatch.com/story/oil-prices-rise-on-hopes-for-another-big-drop-in-us-inventories-2017-08-16)
slid after the Energy Information Administration said crude
supplies fell for a seventh week but domestic production reached
rose to the highest weekly level in over two years.
--Sara Sjolin contributed to this article.
(END) Dow Jones Newswires
August 16, 2017 14:57 ET (18:57 GMT)
Copyright (c) 2017 Dow Jones & Company, Inc.