By Victor Reklaitis, MarketWatch , Ryan Vlastelica
S&P 500 on track for seventh gain of past eight sessions
U.S. stocks rose on Wednesday, in a partial rebound from the
previous session's decline as fears ebbed that the upcoming release
of minutes from the Federal Reserve's January meeting would point
to a more hawkish stance by the central bank.
Read more:5 things to watch in the Fed minutes
(http://www.marketwatch.com/story/five-things-to-watch-in-the-fed-minutes-2018-02-20)
What are the main benchmarks doing?
The Dow Jones Industrial Average rose 100 points, or 0.4%, to
25,061. The S&P 500 rose 14 points to 2,730, a gain of 0.5%.
The Nasdaq Composite Index added 53 points, or 0.7%, to 7,288.
Recent trading has been volatile, with equities posting sharp
swings in both directions. Stocks tumbled on Tuesday, putting an
end to a six-day rally for the Dow and S&P, although the major
indexes were coming off their biggest one-week percentage gain in
years last week.
Both the Dow and the S&P are on track for their seventh
positive session of the past eight.
What could drive markets?
The Fed minutes are scheduled for release at 2 p.m. Eastern
Time.
The Dow industrials are down 4.2% for the month, thanks in part
to signs of an uptick in inflation
(http://www.marketwatch.com/story/why-this-investment-pro-thinks-wall-streets-inflation-fears-are-overblown-2018-02-13)
and bets the U.S. central bank won't delay in raising interest
rates further. Higher rates can lure money out of equities. Much of
the recent gyrations have come on concerns that inflation could be
returning to markets, which could lead the Fed to become more
aggressive in combating such a scenario.
See:Higher inflation, tax-and-spend boom has investors looking
for Fed clues
(http://www.marketwatch.com/story/higher-inflation-trump-tax-and-spend-boom-leave-investors-looking-for-fed-clues-2018-02-17)
What are strategists saying?
"The minutes will certainly be the highlight of the week given
the interest-rate debate that's playing out across all asset
classes, but investors aren't expecting much of a surprise. We had
overreacted to the idea of inflation, and now investors are
focusing on the growth scenario, which is very much intact," said
Peter Kenny, senior market strategist at Global Markets Advisory
Group.
"Inflation isn't running ahead of the Fed's target, and the Fed
is being very transparent about what it is seeing and how it will
expect to react to it, so until we see the next round of data that
gives us a close look at where inflation is, I think markets will
further stabilize."
What data and speakers are driving trading?
An index that tracks U.S. manufacturers rose to a nearly 3
1/2-year high in February
(http://www.marketwatch.com/story/us-businesses-grow-rapidly-at-start-of-2018-ihs-markit-finds-2018-02-21)
and a gauge for service-oriented companies hit a six-month peak,
according to IHS Markit's flash PMI.
Separately, existing-home sales fell 3.2% in January.
In an interview on Bloomberg Television, Minneapolis Fed
President Neel Kashkari said he has "hope" that inflation is
picking up
(http://www.marketwatch.com/story/fed-cant-make-policy-on-market-blips-kashkari-says-2018-02-21),
and that the U.S. central bank "can't make policy based on market
blips, up and down."
Check out:MarketWatch's Economic Calendar
(http://www.marketwatch.com/economy-politics/calendars/economic)
Which stocks are in focus?
The day's gains were broad, with seven of the 11 primary S&P
500 sectors higher on the day. Leading the advance was industrials,
which rose 1%. Airline stocks were among the sector's biggest
gainers; Alaska Air Group(ALK) rose 3.1%, while American Airlines
Group (AAL) was up 2.6%.
Separately, material stocks rose 0.8% while the consumer
discretionary industry was up 0.7%.
Shares in Walmart Inc.(WMT)fell 2.7%, extending a sharp selloff
on Tuesday that represented its largest one-day percentage drop in
30 years
(http://www.marketwatch.com/story/walmarts-stock-is-on-track-for-its-worst-point-drop-in-its-history-as-a-publicly-traded-entity-2018-02-20).
The results came in the wake of the retail king's quarterly
earnings report; analysts worried about a slowdown in online sales
and pressure on profit margins
(http://www.marketwatch.com/story/walmart-execs-grilled-on-disappointing-online-growth-on-earnings-call-2018-02-20).
Walmart bucked the trend of generally strong quarterly results
this quarter; Goldman Sachs referred to the current seas as "one of
the strongest earnings seasons on record."
Read more:The stock market is ignoring 'one of the strongest
earnings seasons on record'
(http://www.marketwatch.com/story/inflation-fears-have-stock-market-investors-ignoring-one-of-the-strongest-earnings-seasons-on-record-2018-02-21)
Owens Corning (OC) fell 4.4% despite reporting fourth-quarter
earnings that beat expectations
(http://www.marketwatch.com/story/owens-corning-earnings-beat-on-insulation-sales-2018-02-21).
Pay-TV giant Dish Network Corp.(DISH) lost 2.5% after it
reported a drop
(http://www.marketwatch.com/story/dish-earnings-buoyed-by-12-billion-tax-benefit-2018-02-21)
in its fourth-quarter revenue.
Devon Energy Corp.(DVN) sank 8.4% after it reported
fourth-quarter results that missed expectations and gave a downbeat
outlook
(http://www.marketwatch.com/story/devon-energy-shares-slide-6-after-earnings-miss-disappointing-guidance-2018-02-21).
Foot Locker Inc.'s stock (FL)rose 1.8% after the retailer late
Tuesday announced a hike in its dividend and a spending plan
focused on online initiatives
(http://www.marketwatch.com/story/foot-locker-raises-dividend-cuts-yearly-capital-plan-to-focus-on-online-sales-2018-02-20).
Shares in LendingClub Corp.(LC)tumbled 6% after the lender late
Tuesday posted quarterly results that missed expectations
(http://www.marketwatch.com/story/lendingclub-shares-fall-after-quarterly-earnings-miss-2018-02-20).
How are other assets performing?
European stocks were losing ground, while Asian markets mostly
closed higher
(http://www.marketwatch.com/story/asian-markets-get-off-to-shaky-start-after-down-day-on-wall-street-2018-02-20).
Oil futures
(http://www.marketwatch.com/story/crude-prices-slip-further-ahead-of-us-supply-data-2018-02-21)dropped
as traders waited for a report on U.S. supplies. The ICE U.S.
Dollar Index edged higher, and gold futures were little
changed.
The yield on the 10-year Treasury note was around 2.88%, down
from 2.895% late Tuesday.
(END) Dow Jones Newswires
February 21, 2018 13:31 ET (18:31 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.