Dow drops close to 100 to hit new record
US stocks rebounded on Wednesday as strong earnings results and economic optimism pushed the Dow Jones Industrial Average to an all-time high.
The Dow Jones Industrials gained 97.31 points to end the session at 34,230.34.
The S&P 500 rose 2.93 points to 4,167.59.
The NASDAQ Composite abandoned previous gains and finished behind Tuesday’s close of 51.08 points to 13,582.42, as Amazon, Netflix and Facebook all fell more than 1%.
General Motors shares climbed more than 4% after earnings beat expectations. Activision Blizzard traded 3% higher after strong results.
Inventories of raw materials jumped. Chevron and Dow were the two biggest winners of the Dow Jones. ConocoPhillips jumped more than 5% thanks in part to an upgrade to buy from Bank of America.
The Biden administration announced Wednesday that it supports lifting intellectual patent protection for COVID-19 vaccines, as countries struggle to manufacture life-saving doses.
The stocks of the major pharmaceutical companies that produced vaccines fell in the wake of the news. Moderna fell more than 6%.
Exercise equipment maker Peloton fell more than 14% after announcing a recall of its treadmill product over safety concerns.
US stocks hit their lowest for the day following comments from Treasury Secretary Janet Yellen that interest rates may have to rise somewhat to keep the economy from overheating.
Later today, the former Fed chairman tempered her remarks somewhat, saying she respects the independence of the central bank and does not try to influence decision-making in that country.
The private payroll increased by 742,000 jobs in April, according to ADP. This result was below the expectations of 800,000 jobs of economists surveyed by Dow Jones.
ADP revised its March report up to 48,000 jobs. These figures precede Friday’s closely watched employment report.
The IHS Markit U.S. Service Purchasing Managers Index stood at 64.7 for April, ahead of the projected reading of 63.3, according to economists polled by Dow Jones.
The Institute for Supply Management’s non-manufacturing index, however, was slightly below expectations at 62.7. PMIs are calculated such that values greater than 50 represent expansion in an economic sector.
10-year Treasury bill prices gained ground, weighing yields down to 1.57% from 1.59% on Tuesday. Treasury prices and yields move in opposite directions.
Oil prices fell 41 cents to US $ 65.28 per barrel.
Gold prices rebounded from $ 10.40 to US $ 1,786.40 per ounce.