We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Wall Street closed slightly higher on Wednesday, led by energy stocks. Investors weighed in their expectations from the Fed Jackson Hole conference, more specifically Fed chair Jerome Powell’s speech slated for Friday, for future outlook. All the three major stock indexes ended in the green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.2% or 59.64 points, to close at 32,969.23. Seventeen components of the 30-stock index ended in the positive territory, while 13 ended in the negative.
The tech-heavy Nasdaq Composite went up by 50.23 points or 0.4% to 12,431.53.
The S&P 500 rose 0.3% or 12.04 points to end at 4,140.77. All the 11 broad sectors of the benchmark index closed in the green. The Energy Select Sector SPDR (XLE), the Real Estate Select Sector SPDR (XLRE) and the Communication Services Select Sector SPDR (XLC) rose 1.2%, 0.8% and 0.6%, respectively.
The fear-gauge CBOE Volatility Index (VIX) decreased 5.4% to 22.82. A total of 8.9 billion shares were traded Wednesday, lower than the last 20-session average of 10.9 billion. Advancers outnumbered decliners on the NYSE by a 1.71-to-1 ratio. On the Nasdaq, a 1.56-to-1 ratio favored the advancing issues.
Focus on Powell’s Upcoming Speech at Jackson Hole
Investors are eagerly awaiting the Fed Jackson Hole meet. Jerome Powell's speech remains the focus to get a hang on how aggressive the Fed is likely to be, especially since it will coincide with the PCE inflation data, the Fed’s favorite inflation tracker, coming out. President Biden’s blanket waiver of student loans may also force the Fed’s hand to conclude that inflation is not going away anytime soon. Powell is expected to reinforce Fed’s goal of squashing inflation by further tightening of monetary policy. Indications about a 75-basis-point interest rate hike from the September meeting is not being ruled out, and market participants remain apprehensive.
Energy Sector Drives Late-session Rally
Both crude oil benchmarks hit three-week highs on Wednesday after the Saudi energy minister said that OPEC could consider the possibility of cutting production. Brent crude settled up $1.00 to $101.22/barrel, while WTI crude settled up $1.15 to $94.89/barrel. Any cut in production can be leveled up by Iranian Oil returning to the market if they are able to secure a nuclear deal with the West. But this notion took a hit, and the energy sector jumped 1.2% as progress on reviving the Iran nuclear deal had a minor setback on news that the U.S. won't consider additional concessions demanded by Iran. As a result, energy prices rose and induced a late-session rally pushing the day’s trading into the green after an indifferent start.
According to a government report, for the week ending August 19, 2022, U.S. commercial crude oil inventories decreased by 3.3 million barrels from the previous week. Coming in at 421.7 million barrels, they are 6% below the five-year average for this time of the year.
The U.S. Census Bureau reported that new orders for manufactured durable goods in July decreased less than $0.1 billion, or remained virtually unchanged at $273.5 billion. This follows a 2.2% increase in June.
The National Association of Realtors reported that pending home sales slid by 1% in July, a second straight month of decline, but fared well against the consensus of a 3% decline for the period. The fall in June was revised up to 8.9%.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
Stock Market News for Aug 25, 2022
Wall Street closed slightly higher on Wednesday, led by energy stocks. Investors weighed in their expectations from the Fed Jackson Hole conference, more specifically Fed chair Jerome Powell’s speech slated for Friday, for future outlook. All the three major stock indexes ended in the green.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) gained 0.2% or 59.64 points, to close at 32,969.23. Seventeen components of the 30-stock index ended in the positive territory, while 13 ended in the negative.
The tech-heavy Nasdaq Composite went up by 50.23 points or 0.4% to 12,431.53.
The S&P 500 rose 0.3% or 12.04 points to end at 4,140.77. All the 11 broad sectors of the benchmark index closed in the green. The Energy Select Sector SPDR (XLE), the Real Estate Select Sector SPDR (XLRE) and the Communication Services Select Sector SPDR (XLC) rose 1.2%, 0.8% and 0.6%, respectively.
The fear-gauge CBOE Volatility Index (VIX) decreased 5.4% to 22.82. A total of 8.9 billion shares were traded Wednesday, lower than the last 20-session average of 10.9 billion. Advancers outnumbered decliners on the NYSE by a 1.71-to-1 ratio. On the Nasdaq, a 1.56-to-1 ratio favored the advancing issues.
Focus on Powell’s Upcoming Speech at Jackson Hole
Investors are eagerly awaiting the Fed Jackson Hole meet. Jerome Powell's speech remains the focus to get a hang on how aggressive the Fed is likely to be, especially since it will coincide with the PCE inflation data, the Fed’s favorite inflation tracker, coming out. President Biden’s blanket waiver of student loans may also force the Fed’s hand to conclude that inflation is not going away anytime soon. Powell is expected to reinforce Fed’s goal of squashing inflation by further tightening of monetary policy. Indications about a 75-basis-point interest rate hike from the September meeting is not being ruled out, and market participants remain apprehensive.
Energy Sector Drives Late-session Rally
Both crude oil benchmarks hit three-week highs on Wednesday after the Saudi energy minister said that OPEC could consider the possibility of cutting production. Brent crude settled up $1.00 to $101.22/barrel, while WTI crude settled up $1.15 to $94.89/barrel. Any cut in production can be leveled up by Iranian Oil returning to the market if they are able to secure a nuclear deal with the West. But this notion took a hit, and the energy sector jumped 1.2% as progress on reviving the Iran nuclear deal had a minor setback on news that the U.S. won't consider additional concessions demanded by Iran. As a result, energy prices rose and induced a late-session rally pushing the day’s trading into the green after an indifferent start.
Consequently, shares of Marathon Petroleum Corporation (MPC - Free Report) and Devon Energy Corporation (DVN - Free Report) advanced 1.3% and 2.2%, respectively. Marathon Petroleum carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Economic Data
According to a government report, for the week ending August 19, 2022, U.S. commercial crude oil inventories decreased by 3.3 million barrels from the previous week. Coming in at 421.7 million barrels, they are 6% below the five-year average for this time of the year.
The U.S. Census Bureau reported that new orders for manufactured durable goods in July decreased less than $0.1 billion, or remained virtually unchanged at $273.5 billion. This follows a 2.2% increase in June.
The National Association of Realtors reported that pending home sales slid by 1% in July, a second straight month of decline, but fared well against the consensus of a 3% decline for the period. The fall in June was revised up to 8.9%.