Closing Stock Market SummaryThe S&P 500 declined 0.2% on Wednesday, as investors remained cautious about a U.S.-China trade deal. The benchmark index was on pace to end a two-day slide, being up was much as 0.5% on optimism that a trade deal may still get done, but the recovery attempt faded in last 30 minutes of trading.
The Nasdaq Composite lost 0.3%, and the Russell 2000 lost 0.5%. The Dow Jones Industrial Average (unch) managed to finish unchanged.
President Trump pumped some optimism into the market after he tweeted that China's Vice Premier was coming to Washington to make a deal. Press Secretary Sarah Sanders later chimed in that the White House received an indication that China wants to make a deal. Both remarks sent stocks higher in a knee-jerk reaction despite both statements being nearly identical and neither giving the market any new information.
China had already confirmed it was planning on coming to the U.S. this week, and it wouldn't have done so if it didn't intend to work on a trade deal. The one new component, if true, is that Reuters indicated sources that China backtracked on nearly all aspects of a trade deal last week.
The report raises uncertainty about when, if it all, a deal might get done with the tariff rate on $200 billion of Chinese imports set to increase on Friday. Nevertheless, the stock market traded with modest, but broad-based, gains during the afternoon before fading into the close.
Most of the S&P 500 sectors finished little changed. The utilities (-1.4%) and communication services (-0.4%) sectors underperformed, while the health care (+0.1%) and real estate (+0.1%) sectors outperformed.
Shares of Lyft (LYFT 52.91, -6.43) dropped 10.8% after the company missed earnings estimates by a wide margin. The stock was also pressured by many ride-hailing drivers around the world turning off their apps Wednesday in protest for better pay, benefits, and worker protections.
U.S. Treasuries lost steam, sending yields higher, as equities gained traction during the day. The 2-yr yield increased two basis points to 2.30%, and the 10-yr yield increased three basis points to 2.48%. The U.S. Dollar Index held firm, finishing unchanged at 97.62. WTI crude rose 1.2% to $62.12/bbl following bullish inventory data out of the Energy Information Administration.
In economic data, the weekly MBA Mortgage Applications Index increased 2.7% following a 4.3% decline in the prior week.
Looking ahead, investors will receive the weekly Initial and Continuing Claims report, the Producer Price Index for April, the Trade Balance report for March, and Wholesale Inventories for March on Thursday.
- Nasdaq Composite +19.7% YTD
- Russell 2000 +16.8% YTD
- S&P 500 +14.9% YTD
- Dow Jones Industrial Average +11.3% YTD