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Market Snapshot: Stock market closes higher as energy, telecom sectors lead

U.S. shares shrugged off a wobbly start to shut upper Tuesday, with the Dow hiking by means of triple digits, as energy and telecommunications rallied. However, business worries were simmering under the skin as traders endured to observe the placement between the U.S. and China

How did major benchmarks fare?

The Dow Jones Industrial Average DJIA, +0.44% climbed 113.99 points, or 0.4%, to end at 25,971.06 after two consecutive losing periods. The S&P 500 SPX, +0.37% added 10.76 points, or 0.4%, to complete at 2,887.89 and the tech-laden Nasdaq Composite Index COMP, +0.61% complicated 48.31 points, or 0.6%, to 7,972.47. The Nasdaq and S&P broke a four-day losing streak on Monday.

Telecommunications were among the best performers while the energy sector got a lift from strong crude oil costs. Tech shares were also notable gainers with megacaps Apple Inc. AAPL, +2.53% Facebook Inc. FB, +1.07%  and Microsoft Corp. MSFT, +1.70%  all emerging sharply.

The acquire for Dow element Apple got here an afternoon ahead of the company’s annual iPhone event, which might also see the company announce upgrades to other products, including a most likely debut for a brand new model of the Apple Watch.

Read: Apple’s event will likely be about extra than simply the iPhone

What drove the marketplace?

Unresolved business problems endured to dog the marketplace after President Donald Trump just lately threatened China with fresh price lists. The newest transfer by means of Trump would have an effect on an extra $267 billion in Chinese goods, approaching best of an already-proposed $200 billion in price lists.

China has vowed to retaliate and plans to invite the World Trade Organization subsequent week for permission to impose sanctions at the U.S. for Washington’s noncompliance with a ruling in a dispute over U.S. dumping tasks, Reuters reported. That’s a part of a dispute that is going again to 2013.

Investors are fearful a couple of full-on business warfare that may have detrimental implications for international financial expansion.

EU and U.S. negotiators met Monday to talk over a pact that will steer clear of a trans-Atlantic spat. Although there was no major breakthrough, U.S. Trade Representative Robert Lighthizer and European Trade Commissioner Cecilia Malmström said they'd join up once more by means of the tip of September and start hammering out a deal in the coming months.

Investors are also facing detrimental seasonal problems, as the month of September is traditionally the weakest of the year, with a median loss of 1.05% since 1896.

Opinion: Resist the urge to promote if every other nine/11-scale assault sinks the inventory marketplace

What were strategists pronouncing?

Mike Antonelli, an fairness sales dealer at Robert W. Baird & Co., credited one of the vital turnaround to an “oversold bounce” as traders returned to the marketplace to search for bargains after the marketplace’s contemporary losing streak.

The inventory marketplace bolstered partially at the again of higher oil costs, which revived pastime in the energy sector, in step with Colin Cieszynski, leader marketplace strategist at SIA Wealth Management. Oil futures CLV8, +0.90% were up 2.eight%.

“You have to observe the business issue because international supply chains are so complex, and financial expansion has depend at the potency of those chains,” said Tom Plumb, leader investment officer of Plumb Funds.

“Having said that, folks talk in regards to the business issue as despite the fact that not anything will occur, or as despite the fact that the worst-case situation will occur. We assume it will be someplace in between, and while I'd steer clear of rising markets and China for some time, we have so much momentum in the U.S. that I'd expect any correction to be short lived,” he said.

Plumb said he was the usage of the hot weak point as an opportunity to shop for shares like Apple. “Any alternative to have to shop for this at a discount, you’ll be smartly served this year and subsequent,” he said.

Which shares were in focus?

Yum China Holdings Inc. YUMC, -13.35%  sank 13% after Bloomberg reported that Hillhouse Capital was shedding its pursuit of operator of Pizza Hut and KFC fast-food restaurants in China.

Shares of Integrated Device Technology Inc. IDTI, +10.65%  surged 11% after Japan’s Renesas Electronics Corp. said it will purchase the California-based chip maker in a $6.7 billion deal.

Sonos Inc. SONO, -22.03%  shares skidded 22% after the speaker maker’s first income report since its initial public providing showed a web loss and sales that were worse than those reported in the similar quarter a year ago. The speaker maker’s inventory had rallied into the release, soaring 13% in Monday’s consultation.

Tesla Inc. TSLA, -2.12%  fell 2.1% after it was downgraded by means of an analyst who cited the “erratic behavior” of Chief Executive Elon Musk.

Sonic Corp. SONC, +eight.23%  surged eight.2% after the fast-food restaurant chain gave an outlook that was above expectancies.

Francesca’s Holdings Corp. FRAN, -34.47%  tumbled 35% and hit all-time lows after the ladies’s clothing chain reported fiscal second-quarter income and sales that neglected expectancies, and supplied a downbeat outlook, bringing up “susceptible site visitors tendencies.”

MasTec Inc. MTZ, +0.82%  said it had approved a brand new $150 million inventory repurchase program, the largest in the infrastructure building company’s history. Shares rose 0.eight%.

Which financial experiences were in focus?

Small-business sentiment climbed to a report in August, in step with the National Federation of Independent Business.

Separately, the selection of process openings in the U.S. climbed to a report 6.94 million in July while the U.S. finances deficit in August was $211 billion, nearly double the distance all over the year-ago length.

What were other markets doing?

Stocks in Asia had a susceptible day with the Hang Seng HSI, -0.32%  taking flight to tug the Hong Kong marketplace into bear territory. European shares SXXP, -0.05%  were also mostly lower.

Gold GCZ8, -0.17% settled rather upper and the greenback index DXY, +0.11%  was flat.

—Barbara Kollmeyer contributed to this report

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