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U.S. stock markets closed mostly higher on Wednesday after Senate Democrats passed a budget resolution for the $3.5 trillion bill. The confidence of market participants was also boosted after the core Consumer Price Index for July came in lower than expected while the Consumer Price Index was also in-line with expectations. The Dow and the S&P 500 closed the day in green, at fresh record highs, while the Nasdaq Composite ended the day in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.6% or 220.30 points, closing at 35,484.97, a new record high, continuing its gains from Tuesday. Notably, 25 components of the 30-stock index ended in green while 5 finished the day in red. Some of the major gainers of the Dow were Walgreens Boots Alliance, Inc. (WBA - Free Report) and Dow Inc. (DOW - Free Report) that gained 2.7% and 1.8%, respectively. Dow carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq Composite closed the day at 14,765.13, down 0.2%, continuing its losses from Tuesday, on the back of weak performance by large-cap technology stocks. The S&P 500 rose 0.3%, closing the day at 4,447.70, another record closing high and continuing its gains from the previous session. The Materials Select Sector SPDR (XLB) and the Industrials Select Sector SPDR (XLI) gained 1.4% and 1.3%, respectively. Ten out of eleven sectors of the benchmark index closed in the positive zone while one closed in the red.
The fear-gauge CBOE Volatility Index (VIX) was down 4.4% to 16.06. A total of 8.62 billion shares were traded on Wednesday, lower than the last 20-session average of 9.55 billion. Advancers outnumbered decliners on the NYSE by a 2.08-to-1 ratio. On Nasdaq, a 1.15-to-1 ratio favored advancing issues.
Senate Democrats Approved Budget Resolution of $3.5 Trillion Plan
Wall Street moved mostly higher on Wednesday after the Senate Democrats passed a budget resolution for the $3.5 trillion bill on Wednesday morning, a day after the Senate passed the $1 trillion infrastructure bill. The budget resolution for the $3.5 trillion bill was voted 50-49 along the party lines.
The plan includes $726 billion investment for ensuring universal pre-school education of 3-year and 4-year olds, $332 billion spending for the Banking Committee that will include instructions for investment in public housing, $198 billion spending for the Energy and Natural Resources Committee, and so on.
Economic Data
The confidence of market participants was boosted in Wednesday’s session with the Dow and the S&P 500 notching fresh closing highs after the U.S. Bureau of Labor Statistics reported that the core Consumer Price Index (CPI) for July, which excludes the volatile food and energy, increased lower than expected while the CPI was also in-line with expectations.
The report stated that the CPI increased 0.5% in July, in-line with the consensus estimate and lower than the rise of 0.9% in June. The report further stated that the indexes of shelter, food, energy, and new vehicles increased in July, which contributed to the monthly seasonally adjusted increase of all items.
The core CPI rose 0.3% in July, lower than the consensus estimate of an increase of 0.4% and also lower than the June reading of 0.9% rise. The report stated that this marked the smallest monthly increase for core CPI in four months. The indexes for recreation, medical care, and personal care also increased in July while the indexes for motor vehicle insurance and airline fares declined during the month.
The Energy Information Administration reported that U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) for the week ending Aug 6, decreased by 0.4 million barrels per day from the previous week. The report stated that crude oil inventories are below the five-year average by about 6%.
Amid fresh fears of the Delta variant of coronavirus, Southwest Airlines (LUV - Free Report) gave a heads-up that unlike its previous expectation, it might not be profitable in the third quarter of 2021. (Read More)
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Stock Market News for Aug 12, 2021
U.S. stock markets closed mostly higher on Wednesday after Senate Democrats passed a budget resolution for the $3.5 trillion bill. The confidence of market participants was also boosted after the core Consumer Price Index for July came in lower than expected while the Consumer Price Index was also in-line with expectations. The Dow and the S&P 500 closed the day in green, at fresh record highs, while the Nasdaq Composite ended the day in red.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) rose 0.6% or 220.30 points, closing at 35,484.97, a new record high, continuing its gains from Tuesday. Notably, 25 components of the 30-stock index ended in green while 5 finished the day in red. Some of the major gainers of the Dow were Walgreens Boots Alliance, Inc. (WBA - Free Report) and Dow Inc. (DOW - Free Report) that gained 2.7% and 1.8%, respectively. Dow carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The tech-heavy Nasdaq Composite closed the day at 14,765.13, down 0.2%, continuing its losses from Tuesday, on the back of weak performance by large-cap technology stocks. The S&P 500 rose 0.3%, closing the day at 4,447.70, another record closing high and continuing its gains from the previous session. The Materials Select Sector SPDR (XLB) and the Industrials Select Sector SPDR (XLI) gained 1.4% and 1.3%, respectively. Ten out of eleven sectors of the benchmark index closed in the positive zone while one closed in the red.
The fear-gauge CBOE Volatility Index (VIX) was down 4.4% to 16.06. A total of 8.62 billion shares were traded on Wednesday, lower than the last 20-session average of 9.55 billion. Advancers outnumbered decliners on the NYSE by a 2.08-to-1 ratio. On Nasdaq, a 1.15-to-1 ratio favored advancing issues.
Senate Democrats Approved Budget Resolution of $3.5 Trillion Plan
Wall Street moved mostly higher on Wednesday after the Senate Democrats passed a budget resolution for the $3.5 trillion bill on Wednesday morning, a day after the Senate passed the $1 trillion infrastructure bill. The budget resolution for the $3.5 trillion bill was voted 50-49 along the party lines.
The plan includes $726 billion investment for ensuring universal pre-school education of 3-year and 4-year olds, $332 billion spending for the Banking Committee that will include instructions for investment in public housing, $198 billion spending for the Energy and Natural Resources Committee, and so on.
Economic Data
The confidence of market participants was boosted in Wednesday’s session with the Dow and the S&P 500 notching fresh closing highs after the U.S. Bureau of Labor Statistics reported that the core Consumer Price Index (CPI) for July, which excludes the volatile food and energy, increased lower than expected while the CPI was also in-line with expectations.
The report stated that the CPI increased 0.5% in July, in-line with the consensus estimate and lower than the rise of 0.9% in June. The report further stated that the indexes of shelter, food, energy, and new vehicles increased in July, which contributed to the monthly seasonally adjusted increase of all items.
The core CPI rose 0.3% in July, lower than the consensus estimate of an increase of 0.4% and also lower than the June reading of 0.9% rise. The report stated that this marked the smallest monthly increase for core CPI in four months. The indexes for recreation, medical care, and personal care also increased in July while the indexes for motor vehicle insurance and airline fares declined during the month.
The Energy Information Administration reported that U.S. commercial crude oil inventories (excluding those in the Strategic Petroleum Reserve) for the week ending Aug 6, decreased by 0.4 million barrels per day from the previous week. The report stated that crude oil inventories are below the five-year average by about 6%.
Stocks That Made Headline
Southwest Q3 Profitability View Dim on Delta Variant Woes
Amid fresh fears of the Delta variant of coronavirus, Southwest Airlines (LUV - Free Report) gave a heads-up that unlike its previous expectation, it might not be profitable in the third quarter of 2021. (Read More)