The Nasdaq ended in the green on Wednesday after the technology sector posted its second straight day of gains. Despite the recovery in tech stocks, both the Dow and the S&P 500 closed in the red after energy stocks fell yesterday following a sudden plunge in oil prices. S&P 500 posted declines for the fourth straight sessions, its longest stretch of losses since March.
The Dow Jones Industrial Average (DJIA) decreased 0.2%, to close at 24,140.91. The S&P 500 Index (INX) fell 0.30 points to close at 2,629.27. However, the tech-laden Nasdaq Composite Index (IXIC) closed at 6,776.38, gaining 0.2%. A total of 6.3 billion shares were traded on Wednesday, lower than the last 20-session average of 6.6 billion shares. Decliners outnumbered advancers on the NYSE by a 1.36-to-1 ratio. On Nasdaq, a 1.89-to-1 ratio favored declining issues. The CBOE VIX decreased 2.7% to close at 11.02.
Tech Stocks Up For 2 Straight-Days
Recently, valuation concerns resulted in a selloff of tech stocks. Additionally, worries over possible inclusion of the alternative minimum tax in the final version of the Republican tax Bill also weighed on investor sentiment. However, after the recent selloff, tech stocks have registered two straight days of gains since investors have bought the sector on the dip.
The Technology Select Sector SPDR (XLK) rose more than 0.6%, becoming the best performer among key S&P 500 sectors. Some of its key holdings, including Facebook, Inc. (FB - Free Report) , Amazon.com, Inc. (AMZN - Free Report) , Netflix, Inc. (NFLX - Free Report) and Alphabet Inc. (GOOGL - Free Report) increased 1.9%, 0.9%, 0.6% and 1.3%, respectively.
Oil Prices Down More Than 2%
The U.S. Energy Information Administration (EIA) reported that U.S. commercial crude oil inventories slumped 5.6 million barrels to 448.1 million for the week ended December 1. However, the EIA reported that gasoline inventories jumped 6.8 million barrels, in contrast to analysts’ forecasts of a rise of only 1.145 million barrels. This led to a decline in oil prices on Wednesday, which witnessed strong gains recently owing to OPEC and non-OPEC countries’ decision to extend crude output controls till the end of next year.
WTI crude fell 3% to $55.96 per barrel. Brent crude also declined 2.7% to $61.22 a barrel. Decrease in oil prices led the Energy Select Sector SPDR (XLE) to fall 1.3% and emerge as the biggest decliner among the S&P 500 sectors. Both the two key oil behemoths, Chevron Corporation (CVX - Free Report) and Exxon Mobil Corporation (XOM - Free Report) decreased 0.7%. While Chevron hasa Zacks Rank #3 (Hold), Exxon Mobil has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Stocks That Made Headlines
American Eagle Surges Despite Q3 Earnings & Sales Miss
Despite posting lower-than-expected earnings and sales for third-quarter fiscal 2017, shares of American Eagle Outfitters, Inc. (AEO - Free Report) rose yesterday. (Read More)
Dollar General Earnings & Sales Beat Estimates in Q3
Dollar General Corporation (DG - Free Report) delivered positive earnings surprise for the fourth consecutive quarter, when the company posted third-quarter fiscal 2017 results. (Read More)
Lululemon Jumps on Q3 Earnings & Sales Beat, Ups View
Lululemon Athletica Inc. (LULU - Free Report) delivered a robust third-quarter fiscal 2017 results, with both sales and earnings surpassing estimates and also improving year over year. (Read More)
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