Stocks managed to advance on Wednesday, as investors continued to watch the Ukrainian situation unfold.
Although the Dow Jones Industrial Average took a slight dip on Wednesday, stocks generally advanced, despite global anxiety over the antics of Vladimir Putin.
The economic slowdown in China continued to weigh heavily on the minds of investors, as the S&P 500 spent most of the day in the red, before breaking into positive territory during the last ten minutes of the session.
The Dow Jones Industrial Average (DIA) lost 11 points to finish Wednesday’s trading session at 16,340 for a 0.07 percent decline. The S&P 500 (SPY) rose 0.03 percent to 1,868.
The Nasdaq 100 (QQQ) climbed 0.42 percent to finish at 3,707. The Russell 2000 (IWM) advanced 0.36 percent to 1,191.
In other major markets, oil (USO) sank 1.28 percent to close at $35.35.
On London’s ICE Futures Europe Exchange, May futures for Brent crude oil declined 41 cents (0.38 percent) to $107.47/bbl. (BNO).
April gold futures advanced $20.40 (1.52 percent) to $1,367.10 per ounce (GLD).
The transportation sector was back in the express lane during Wednesday’s trading session, as the Dow Jones Transportation Average advanced 0.34 percent to 7,585 (IYT).
In Japan, the exchange rate for the yen remained the dominant factor in stock market activity. Japanese stocks dropped as the yen strengthened to 102.92 per dollar during the last 20 minutes of Wednesday’s trading session in Tokyo. A stronger yen causes Japanese exports to be less competitively priced in foreign markets (FXY). The Nikkei 225 Stock Average sank 2.59 percent to 14,830 (EWJ).
Although investors worldwide remained worried about China’s economic slowdown and its impact on copper prices, it was just another day in mainland China. Nothing to see here … Move along now. The Shanghai Composite Index declined by a mere 0.17 percent to 1,997 (FXI). Nevertheless, the gamblers in Hong Kong were more mindful of the risks ahead. Hong Kong’s Hang Seng Index fell 1.65 percent to 21,901 (EWH).
Ongoing tension over Russia’s plans for Crimea was not the only thing which kept European investors in a risk-averse mood on Wednesday. Eurostat reported that industrial production in the Eurozone declined by 0.2 percent in January, despite economists’ expectations of a 0.5 percent advance. The Euro STOXX 50 Index finished Wednesday’s session with a 0.88 percent drop to 3,065 – crossing below its 50-day moving average of 3,091. Its Relative Strength Index is 43.73 (FEZ).
Technical indicators revealed that the S&P 500 rose further above its 50-day moving average of 1,828 on Wednesday, after advancing 0.03 percent to 1,868. Its Relative Strength Index (RSI) rose from 60.68 to 60.88. The MACD is dropping toward the signal line, suggesting that the S&P could resume its decline during the immediate future.
On Wednesday, four sectors advanced and five sectors declined. The industrial sector took the hardest hit, falling 0.19 percent.
Consumer Discretionary (XLY): -0.15%
Technology: (XLK): +0.17%
Industrials (XLI): -0.19%
Materials: (XLB): -0.04%
Energy (XLE): +0.01%
Financials: (XLF): -0.18%
Utilities (XLU): +1.26%
Health Care: (XLV): -0.02%
Consumer Staples (XLP): +0.21%
Bottom line: Although investors remained anxious about China’s economic slowdown and the situation in the Ukraine, stocks generally advanced on Wednesday, although the Dow lacked the energy to make it through a late-day attempt to break out of the red.
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