Stock Market News For Jun 28, 2019

Broader markets rebounded on Thursday after investors turned optimistic about a near-term trade deal between the United States and China. According to reports, President Donald Trump will be presented with conditions by Chinese President Xi Jinping at the G-20 summit to bring the prolonged U.S.-China trade war to an end. Bank shares also gained ahead of the results of the Fed’s stress test results, boosting broader markets.

The Dow Jones Industrial Average (DJI) decreased less than 0.1%, to close at 26,526.58. The S&P 500 gained 0.4% to close at 2,924.92. The Nasdaq Composite Index climbed 0.7%, finishing at 7,967.76. The CBOE Volatility Index (VIX) decreased 2.41% to close at 15.82. Advancers outnumbered decliners on the NYSE by a 2.43-to-1 ratio. A 2.81-to-1 ratio favored advancers on Nasdaq.

How Did the Benchmarks Perform?

The Dow dropped 10.2 points, declining for the third session on Thursday. Shares of Boeing (NYSE:BA) slid 2.9% after the Federal Aviation Administration said on Jun 26 that Boeing must address an issue with its 737 MAX before the national grounding order on the jet was removed. Boeing carries a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

The S&P 500 gained 11.1 points. The broader market index was largely lifted by gains in bank stocks ahead of the Fed’s stress tests results. Shares of Citigroup (NYSE:C) , Wells Fargo (NYSE:WFC) and JPMorgan (NYSE:JPM) gained 1.4%, 1.1% and 0.3%, respectively. Morgan Stanley (NYSE:MS) Goldman Sachs (NYSE:GS) ,each gained 1.2%.

The tech-laden Nasdaq also climbed 57.8 points higher on Thursday. Chip stocks were trading high on Thursday, with the iShares PHLX Semiconductor ETF (SOXX) rising 1.4%.

Wall Street Uncertain About Tariff Ceasefire

According to CNBC, China is seeking to seal a trade deal with the United States at the G-20 summit,. President Xi is expected to offer Trump a set of terms that must be accepted by U.S. in order to resolve the trade war, The Wall Street Journal reported.

These terms include removing the ban on sale of American technology to Huawei Technologies Co., eliminating retaliatory import duties and withdrawing from its stated position that China would have to purchase additional American exports.

Larry Kudlow, National Economic Council director, said that no preconditions are set for the U.S.-China trade meet and that U.S. may go ahead with additional tariffs.

Economic Data

The Department of Commerce’s final estimate for GDP left the metric unchanged at the previously estimated level of 3.1%. The economy expanded at a 2.2% pace in the October-November period.

According to the Labor Department, initial claims for unemployment benefits increased to 227,000 during the week ended Jun 22, exceeding the estimated level of 218,000.

Stocks That Made Headlines

Accenture (NYSE:ACN) Q3 Earnings Surpass Estimates, FY19 View Up

Accenture plc (NYSE:C) reported impressive third-quarter fiscal 2019 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. (Read more)

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>