Investment and Insurance Products: NOT FDIC Insured, NO Bank Guarantee, MAY Lose Value
Stocks finished slightly higher Tuesday. The Dow added 14 points to 26064. The S&P 500 briefly traded above 2900 for the first time before closing up a point at a record level of 2897. The Nasdaq Composite gained 12 points to an all-time high of 8030.
The major averages extended gains as investors assessed the latest economic and geopolitical updates. Yesterday, U.S. equities were buoyed by news that the U.S. and Mexico agreed on framework for a new trade deal to replace NAFTA. On the data front, consumer confidence in August unexpectedly increased to the highest level since late 2000. Separately, the U.S. advance goods trade balance widened more than expected to a deficit of $72.2 billion in July. A preliminary reading on July wholesale inventories showed a 0.7% gain, above forecasts of a 0.2% advance.
Seven of 11 S&P 500 sectors finished in negative territory with Telecomm and Energy down the most. Technology and Consumer Discretionary stocks outperformed as shares of Qualcomm increased 3.6% to $69.78 and Netflix climbed 1.1% to $368.49. In earnings, DSW surged 20.2% to $32.70 after the shoe retailer bested earnings projections. In the M&A space, YUM! China climbed 3.9% to $37.20 amid reports the firm rejected a recent takeover attempt.
Breadth was negative on issues by roughly 6:5 on the NYSE and even on the Nasdaq. Composite NYSE volume was more than 3.6 billion shares.
Treasuries were lower with the yield of the benchmark 10-year note increasing three basis points to 2.88%. In commodities, WTI crude lost 0.4% to $68.62/barrel. COMEX gold fell 0.1% to $1,207.40/ounce despite a weaker dollar.