Stocks and Treasuries both advanced Wednesday as investors digested a slew of economic data releases during an abbreviated session. The Dow added 179 points to an all-time high of 26,966. The S&P 500 and Nasdaq Composite both climbed 0.8%, with each index notching a new record closing level.
Trade relations were also in focus after White House trade advisor Peter Navarro suggested that negotiating a new deal with China “is a very complicated process,” and it “will take time.” On the data front, ISM’s gauge of the U.S. service sector in June declined more than expected to the weakest level in nearly two years. A separate survey showed private payrolls increased by 102,000 in June, below projections of 140,000. An additional report showed the U.S. trade balance widened to a five-month high in May as imports surged the most since 2015. Another release showed factory orders fell 0.7% in May, below expectations of a 0.6% dip. Amid the soft data updates, the yield on the 10-year note fell three basis points to 1.95%, the lowest level since 2016.
All 11 S&P 500 sectors finished in positive territory amid light trading volume. In corporate news, Symantec jumped 13.6% on news that the company has been engaged in takeover talks with Broadcom. Tesla rallied 4.6% after the electric car maker beat previous production and delivery records during the second quarter.
In commodities, WTI crude added 0.9% to $56.76/barrel despite a government report revealing U.S. crude inventories dropped less-than-anticipated last week. COMEX gold climbed 0.8% to $1,419.70/ounce.