MARKET SNAPSHOT: U.S. Stocks Rise As Investors Keep Wary Eye On Boeing, Brexit Developments
March 13 2019 - 1:41PM
Dow Jones News
By Sue Chang and Chris Matthews, MarketWatch
Boeing shares attempt to snap seven-day losing streak
U.S. stocks rose Wednesday, putting the S&P 500 and the
Nasdaq on track for a third straight day of gains, as investors
weighed conflicting data on the U.S. economy with concerns tied to
the U.K.'s exit from the European Union.
Shares of Boeing Co. remained in the spotlight in the aftermath
of a series of groundings of its 737 Max 8 fleet by regulators
outside the U.S.
How are major indexes performing?
The Dow Jones Industrial Average rose 170 points, or 0.7%, to
25,725, while the S&P 500 index added 23 points, or 0.9%, to
2,815. The Nasdaq Composite Index advanced 67 points, or 0.9%, at
7,658.
What's driving the market?
U.S. investors continue to parse data on the U.S. economy, with
a report on durable goods orders coming in surprisingly strong
(http://www.marketwatch.com/story/durable-goods-orders-rise-in-january-for-3rd-straight-month-and-investment-rebounds-2019-03-13),
following previous reports showing a sharp slowdown in business
investment.
The Commerce Department report also showed core capital orders,
a key measure of business investment, rising 0.8% in January after
falling sharply the two months previous.
The cost of wholesale goods rose 0.1% in February
(http://www.marketwatch.com/story/wholesale-prices-creep-higher-in-february-but-inflation-poses-little-threat-ppi-shows-2019-03-13),
below the 0.2% increase expected by economists, per a MarketWatch
poll. The 12-month increase in producer prices fell from 2.5% to
2.3%, well below last summer's peak of 3% growth.
U.S. construction spending rose 1.3% in January, the largest
increase since April, after a 0.8% decrease in December, the
Commerce Department said.
British lawmakers on Tuesday rejected Prime Minister Theresa
May's revised Brexit deal in a 242-391 vote and now are looking at
a second vote on whether an exit without a pact with Europe's trade
bloc can be taken off the table before a March 29 deadline. A
so-called hard-Brexit scenario has stoked volatility in Britain's
currency and has the potential to unsettle financial markets,
experts say.
What are strategists saying?
"The rebound in underlying capital goods orders in January is
still consistent with a slowdown in business equipment investment
growth in the first quarter, although it suggests that slowdown
will not be as sharp as signaled by some of the incoming survey
evidence," wrote Michael Pearce senior U.S. economist with Capital
Economics in a note.
"With the February producer price figures showing few signs of a
pickup in inflation in the pipeline, there is still a strong case
for the Fed to remain patient," he added.
David Madden market analyst at CMC Markets UK, said the
investment climate is "gloomy this morning as Brexit still hangs
over the markets. Theresa May's withdrawal agreement was voted down
yesterday, which wasn't a huge surprise."
Which stocks are in focus?
Boeing (BA) shares edged up 0.1%, attempting to snap a seven-day
losing streak. A pair of crashes involving its 737 Max 8 jets have
weighed on the aviation and defense maker's stock and the Dow,
where it is a key component.
Shares of Rite Aid Corp.(RAD) rose 5.1% after the drugstore
chain's Chief Executive John Standley said he would step down.
Shares of Express Inc. (EXPR) fell 5.3% after the fashion
apparel retailer
(http://www.marketwatch.com/story/expresss-stock-plunges-after-sales-miss-downbeat-outlook-offsets-adjusted-profit-beat-2019-03-13)
beat fourth-quarter profit expectations but missed on net sales and
provided first-quarter outlook that was worse than forecasts.
Take-Two Interactive Software (TTWO)stock climbed 4.7% on rumors
that Sony Corp. (6758.TO) "is in advanced board level discussions
to acquire Take-Two Interactive in a mostly cash deal," that would
value the company at $130 share, according to Joel Kulina, head of
technology and media trading at Wedbush Securities.
How are other markets trading?
Asian markets closed lower
(http://www.marketwatch.com/story/asian-markets-lower-amid-weight-of-global-uncertainties-2019-03-12),
with Japan's Nikkei 225 losing 1%, Hong Kong's Hang Seng Index
shedding 0.4% and China's Shanghai Composite Index retreating
1.1%.
European stocks were higher, with the Stoxx Europe 600 rising
0.6%.
The price of oil continued to rise
(http://www.marketwatch.com/story/oil-aims-for-3-day-win-streak-us-benchmark-trades-near-four-month-high-2019-03-13),
while gold also gained ground. The U.S. dollar , meanwhile, edged
lower
(http://www.marketwatch.com/story/dollar-weaker-as-british-pound-bounces-higher-ahead-of-hard-brexit-vote-2019-03-13).
--Mark DeCambre contributed to this report
(END) Dow Jones Newswires
March 13, 2019 13:26 ET (17:26 GMT)
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