Stock Market News For Feb 14, 2019
Zacks Investment Research | Feb 13, 2019 09:30PM ET
Wall Street rally continued in Wednesday buoyed by positive developments on the trade war front. Moreover, President Trump’s statement which negated the possibility of a second government shutdown also boosted investors’ confidence. All three major stock indexes closed in the green.
The Dow Jones Industrial Average (DJI) closed at 25,543.27, rising 0.5% or 117.51 points. Meanwhile, the S&P 500 Index (INX) increased 0.3% to close at 2,753.03. The Nasdaq Composite Index (IXIC) closed at 7,420.38, gaining 0.1%. A total of 6.91 billion shares were traded on Wednesday, lower than the last 20-session average of 7.45 billion shares. Advancers outnumbered decliners on the NYSE by 1.86-to-1 ratio. On the Nasdaq, advancers had an edge over decliners by 1.42-to-1 ratio. The CBOE VIX decreased 1.4% to close at 15.65.
How Did the Benchmarks Perform?
The Dow ended in positive territory for two straight-days. Notably, 23 stocks of the 30-stocks blue-chip index finished in the green while seven ended in the red. The tech-heavy Nasdaq Composite finished in the green for four consecutive days, due to good performance by large-cap tech stocks.
The S&P 500 closed in positive territory for four successive days. The Energy Select Sector SPDR (XLE (NYSE:XLE)) gained 1.3%. Notably, ten out of 11 sectors of the benchmark index closed in the green while one ended in red.
Positive Developments on Trade War Front
Trade negotiations between the United States and China entered the third day on Feb 13. Both the countries are hopeful that this fresh round of negotiations would result in an amicable solution to the ongoing tariff war.
While such discussions have been termed as only working-level, U.S. Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer are expected in Beijing on Feb 14 for the next level of talks. Investors are also optimistic regarding these negotiations.
Meanwhile, on Feb 12, President Donald Trump said that he would consider extending the deadline of the current trade truce period which will come to an end on Mar 1. On Feb 13, South China Morning Post reported that Chinese President Xi Jinping is likely to meet high-level U.S. trade delegation on Feb 15 to resolve this 11 month old tariff related problem.
Consequently, shares of trade-sensitive stocks such as The Travelers Companies Inc. (NYSE:TRV) and Caterpillar Inc. (NYSE:CAT) rose 0.6% and 0.3%, respectively. Caterpillar carries a Zacks Rank #3 (Hold). You can see Original post
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