U.S. equities finished higher, pausing a two-day losing streak that came amid U.S.-China trade tensions, as comments yesterday from President Trump about his optimism of a deal helped to soothe the worries somewhat. Treasury yields were lower and the U.S. dollar was little changed following an unexpected rise in jobless claims and a cooler-than-expected read on import prices, while gold was higher. The energy sector was one of the leaders, getting a boost from a rise in crude oil prices following reports of attacks on tankers in the Gulf of Oman. News on the equity front surrounded some second-tier earnings reports, with shares of RH rallying after the home- furnishing retailer easily beat forecasts and upped its guidance, while Lululemon Athletica notched a nice gain in the wake of its upbeat results.
The Dow Jones Industrial Average (DJIA) increased 102 points (0.4%) to 26,107, the S&P 500 Index gained 12 points (0.4%) to 2,892, and the Nasdaq Composite advanced 44 points (0.6%) to 7,837. In moderate volume, 710 million shares were traded on the NYSE and 1.8 billion shares changed hands on the Nasdaq. WTI crude oil rose $1.14 to $52.28 per barrel and wholesale gasoline was up $0.03 at $1.72 per gallon. Elsewhere, the Bloomberg gold spot price rose $7.52 to $1,341.10 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was nearly unchanged at 97.04.
Weekly initial jobless claims rose by 3,000 to 222,000, compared estimates of a decline to 215,000, with the prior week’s figure being revised higher by 1,000 to 219,000. The four-week moving average increased by 2,500 to 217,750, while continuing claims gained 2,000 to 1,695,000, north of estimates of 1,668,000.
The Import Price Index fell 0.3% month-over-month (m/m) for May, below projections of a 0.2% decline, and following April’s downwardly-revised 0.1% gain. Compared to last year, prices were down 1.5%, versus forecasts of a 1.2% decline and compared to April’s upwardly-revised 0.1% increase.
Treasuries were higher, as the yield on the 2-year note dropped 5 basis points (bps) to 1.84%, the yield on the 10-year note lost 3 bps to 2.10%, and the 30-year bond rate decreased 2 bps to 2.60%.
©2019 Charles Schwab & Co., Inc., Member SIPC. All rights reserved.
Schwab Center for Financial Research (“SCFR”) is a division of Charles Schwab & Co., Inc. The information contained herein is obtained from third-party sources and believed to be reliable, but its accuracy or completeness is not guaranteed. This report is for informational purposes only and is not a solicitation, or a recommendation that any particular investor should purchase or sell any particular security. The investment information mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision. All expressions of opinions are subject to change without notice in reaction to shifting market conditions.