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SEPTEMBER 25, 2019 / 4:51 pm
Wall Street bounces back as investors shrug off impeachment risk
DJ: 26,807.77 -142.22 NAS: 7,993.63
-118.84 S&P: 2,966.60
-25.18 9/24
DJ: 26,970.71 +162.94 NAS: 8,077.38 +83.76 S&P: 2,984.87
+18.27 9/25
NEW YORK (Reuters) - The
S&P 500 notched its biggest daily gain in two weeks on Wednesday as
investors shrugged off the news of an impeachment inquiry into President Donald
Trump, while Nike shares jumped on upbeat quarterly results. Democratic lawmakers on Tuesday moved to
launch a formal inquiry into whether to impeach Trump, and indexes weakened
briefly early Wednesday after the White House released a summary of a telephone
call between Trump and Ukraine’s president that is at the center of the
inquiry.
Stocks rose as investors
digested the news,
recovering from losses on Tuesday as the impeachment push gained momentum. “We’ll see what the Democrats do from here,
whether they move forward or not. It just doesn’t appear that it’s going to be the
distraction that yesterday the market thought it might become. So the market’s
having a good day based on that,” said Tim Ghriskey, chief investment
strategist at Inverness Counsel in New York, New York.
Helping sentiment, data showed that sales of new U.S. single-family homes rebounded
more than expected in August, a sign that the struggling housing market was
starting to get a lift from lower borrowing rates. Nike Inc (NKE.N)
shares jumped 4.2% after the company’s first-quarter results beat market
expectations.
The
Dow Jones Industrial Average .DJI rose 162.94 points, or 0.61%, to 26,970.71,
the S&P 500 .SPX gained 18.27 points, or 0.62%, to 2,984.87
and the Nasdaq Composite .IXIC added 83.76 points, or 1.05%, to 8,077.38. Among
the day’s top sector performers were technology and communication services. The
S&P 500 technology index .SPLRCT was up 1.2%, while the Philadelphia chip
index .SOX gained 1.8%.
“Good economic data is
fighting with political noise and good data is winning,” said Michael Antonelli, market strategist
at Robert W. Baird in Milwaukee. Adding
to the stronger tone, Trump
said a trade deal with China could happen sooner than expected, comments
that were in contrast to
his harsh rhetoric the day before.
Also on the trade front, Trump and Japanese Prime Minister Shinzo Abe
announced initial details of an emerging trade deal between the two countries,
with Trump saying it would open up Japanese markets to $7 billion worth of
American products.
Shares in Philip Morris (PM.N)
surged 5.2% after the tobacco company called off merger talks with Altria Group
Inc (MO.N) and said it would instead focus on the
U.S. launch of its tobacco-heating product, iQOS.
Advancing issues outnumbered declining ones on the NYSE by a
1.50-to-1 ratio; on Nasdaq, a 1.42-to-1 ratio favored advancers. The S&P 500 posted 11 new 52-week highs
and no new lows; the Nasdaq Composite recorded 29 new highs and 103 new lows.
Volume on U.S. exchanges
was 6.67 billion shares,
compared to the 7.2 billion average for the full session over the last 20
trading days.
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