Investing.com – U.S. stocks closed mostly higher on Wednesday, led by energy, after crude prices closed above $49 for the first time in nearly three-weeks, while better than expected economic data lifted sentiment.
Investors piled into U.S. stocks, after better than expected housing data supported the narrative of a strengthening U.S. economy.
The U.S. National Association of Realtors said its pending home sales increased by 5.5% last month, which was far above economists’ forecast of a 2.4% increase.
Energy stocks led the move higher, driven by a strong rebound in crude prices, after the latest Energy Information Administration (EIA) report showed a smaller than expected rise in U.S. crude stockpiles.
On the New York Mercantile Exchange crude futures for April delivery added $1.14 to settle at $49.51 a barrel.
Elsewhere, a flurry of hawkish comments from several Federal Reserve officials had a muted impact on market moves.
San Francisco Federal Reserve President John Williams said Wednesday that his central bank colleagues should not "rule out more than three [rate] increases total for this year”, as the U.S economy is close to achieving the Federal Reserve’s dual mandate.
Meanwhile, Fed member Charles Evans said Wednesday, he has confidence that two total rate increases in 2017 seems “very safe” while Federal Reserve Bank of Boston President Eric Rosengren opted for a more bullish outlook, after he said the U.S. central bank should be prepared to raise interest rates a total of four times in 2017 to prevent the U.S. economy from overheating.
Investors also mulled over the effect of Brexit, after Article 50, the legal process by which Britain will leave the European Union (EU) was triggered on Wednesday.
In corporate earnings news, shares of Lululemon sank in after-hours trade, as the yoga apparel retailer revealed quarterly performance and forward guidance that missed analysts’ expectations.
The Dow Jones Industrial Average closed 0.20% lower at 20,659. The S&P 500 gained 0.11% and the Nasdaq Composite closed 0.38% higher at 5897.55
The top S&P 500 gainers included Vertex Pharmaceuticals Inc (NASDAQ:VRTX) up 20.5%, and Chesapeake Energy Corporation (NYSE:CHK) up 7.8%, while Nordstrom Inc (NYSE:JWN) added 5.4%.
F5 Networks Inc (NASDAQ:FFIV) down 3.4%, Mylan Inc (NASDAQ:MYL) down 3.3% and Arconic Inc (NYSE:ARNC) slumped 3.1%, were among the worst S&P 500 performers of the session.