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Stock Market News for Aug 29, 2019

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Benchmarks closed in the green on Wednesday led by gain in energy and financial stocks. However, the gains were limited due to further inversion in yield curve and trade war concerns.

The Dow Jones Industrial Average (DJI) rose 1 % or 258.2 points to close at 26,036.10. The S&P 500 gained 18.78 points or 0.7% to close at 2,887.94. The Nasdaq Composite Index closed at 7,856.88, rising 0.4%. The fear-gauge CBOE Volatility Index (VIX) decreased nearly 5% to close at 19.35. Advancers outnumbered decliners on the NYSE by a 2.91-to-1 ratio. On Nasdaq, a 2.64-to-1 ratio favored advancers.

Financial & Energy Stocks Boost Wall Street

On Wednesday, the financial sector was up by 0.9% after suffering losses from the fear of recession caused by the deepening of the 2-year /10-year Treasury yield curve inversion.

Data from the U.S. Energy Information Administration, in the meantime, showed that inventories fell by 10 million barrels last week, helping energy stocks to jump as crude oil prices rose. Crude oil gained settled at $55.78 per barrel allowing the S&P 500 energy sector to jump 1.4%.

Stocks of Cimarex Energy Co. rose 10.6%, which led the energy sector. While ConocoPhillips (COP - Free Report) , Exxon Mobil Corporation (XOM - Free Report) and Chevron Corporation (CVX - Free Report) stocks rose by 1.9%, 0.7% and 0.9%, respectively. Cimarex Energy, ConocoPhillips, Exxon Mobil and Chevron stocks carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Trade Tension Prevails

After a week of trade tussle, the U.S. Trade Representative’s office on Wednesday confirmed that the White House is scheduled to impose the first round of tariffs on $300 billion worth of Chinese imports.

China, on the other hand, is expected to impose retaliatory tariffs of 5% to 10% on $75 million of U.S. goods. After the news tech stocks fell 0.1% which was led by Microsoft Corporation (MSFT - Free Report) , sliding 0.1%.

Yield Curve Inverts Again

On Wednesday stocks traded lower initially as the U.S. Treasury yield continued to dip. The 10-year Treasury yield and the 2-year rate fell to negative 6 basis point, which is the highest inversion since 2007. The 10-year Treasury note closed at 1.469% sliding 1.61% and the 2-year yield closed at 1.504%. The 30-year Treasury yield rate fell to record low by 2% closing at 1.930%.

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