MARKET SNAPSHOT: S&P 500, Nasdaq Set For 3rd Gain In A Row, As Investors Watch Boeing, Brexit Issues
13 März 2019 - 8:29PM
Dow Jones News
By Sue Chang and Chris Matthews, MarketWatch
Boeing shares extend losses as U.S. prepare to ground 737 Max
8
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.
Boeing remained in the spotlight as concerns about the safety of
its cutting edge 737 Max 8 continued unabated following the second
deadly crash involving the model in Ethiopia over the weekend.
How are major indexes performing?
The Dow Jones Industrial Average came off earlier highs to rise
84 points, or 0.3%, to 25,640, while the S&P 500 index added 19
points, or 0.7%, to 2,810. The Nasdaq Composite Index advanced 60
points, or 0.8%, at 7,651.
What's driving the market?
Boeing Co. (BA) shares fell more than 3% after President Donald
Trump told reporters that U.S. regulators will ground 737 Max 8 and
9
(http://www.marketwatch.com/story/us-to-ground-boeing-737-max-8-and-9-jets-trump-says-2019-03-13)
in line with similar decisions in other countries.
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 increased 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
won't 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?
Shares of Rite Aid Corp.(RAD) rose 3.6% after the drugstore
chain's Chief Executive John Standley said he would step down.
Shares of Express Inc. (EXPR) sank 11% 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 5.2% after
Joel Kulina, head of technology and media trading at Wedbush
Securities, referenced rumors about potential takeover interest
from Sony Corp. (6758.TO) in his note to clients.
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 settled higher and the U.S. dollar 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 article
(END) Dow Jones Newswires
March 13, 2019 15:14 ET (19:14 GMT)
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