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Boeing remains in the hot seat.
U.S. stocks rose Wednesday, putting the S&P 500 and the Nasdaq on track for a third straight day of gains, as investors weighed conflicting data on the U.S. economy with concerns tied to the U.K.’s exit from the European Union.
Boeing remained in the spotlight as concerns about the safety of its cutting edge 737 Max 8 continued unabated following the second deadly crash involving the model in Ethiopia over the weekend.
How are major indexes performing?
The Dow Jones Industrial Average DJIA, +0.58% came off earlier highs to rise 84 points, or 0.3%, to 25,640, while the S&P 500 index SPX, +0.69% added 19 points, or 0.7%, to 2,810. The Nasdaq Composite Index COMP, +0.69% advanced 60 points, or 0.8%, at 7,651.
What’s driving the market?
Boeing Co. BA, +0.46% shares fell more than 3% after President Donald Trump told reporters that U.S. regulators will ground 737 Max 8 and 9 in line with similar decisions in other countries.
Investors continue to parse data on the U.S. economy, with a report on durable goods orders coming in surprisingly strong, following previous reports showing a sharp slowdown in business investment.
The Commerce Department report also showed core capital orders, a key measure of business investment, rising 0.8% in January after falling sharply the two months previous.
The cost of wholesale goods rose 0.1% in February, below the 0.2% increase expected by economists, per a MarketWatch poll. The 12-month increase in producer prices fell from 2.5% to 2.3%, well below last summer’s peak of 3% growth.
U.S. construction spending increased 1.3% in January, the largest increase since April, after a 0.8% decrease in December, the Commerce Department said.
British lawmakers on Tuesday rejected Prime Minister Theresa May’s revised Brexit deal in a 242-391 vote and now are looking at a second vote on whether an exit without a pact with Europe’s trade bloc can be taken off the table before a March 29 deadline. A so-called hard-Brexit scenario has stoked volatility in Britain’s currency and has the potential to unsettle financial markets, experts say.
What are strategists saying?
“The rebound in underlying capital goods orders in January is still consistent with a slowdown in business equipment investment growth in the first quarter, although it suggests that slowdown won’t be as sharp as signaled by some of the incoming survey evidence,” wrote Michael Pearce senior U.S. economist with Capital Economics in a note.
“With the February producer price figures showing few signs of a pickup in inflation in the pipeline, there is still a strong case for the Fed to remain patient,” he added.
David Madden market analyst at CMC Markets UK, said the investment climate is “gloomy this morning as Brexit still hangs over the markets. Theresa May’s withdrawal agreement was voted down yesterday, which wasn’t a huge surprise.”
Which stocks are in focus?
Shares of Rite Aid Corp. RAD, +6.10% rose 3.6% after the drugstore chain’s Chief Executive John Standley said he would step down.
Shares of Express Inc. EXPR, -10.12% sank 11% after the fashion apparel retailer beat fourth-quarter profit expectations but missed on net sales and provided first-quarter outlook that was worse than forecasts.
Take-Two Interactive Software TTWO, +6.88% stock climbed 5.2% after Joel Kulina, head of technology and media trading at Wedbush Securities, referenced rumors about potential takeover interest from Sony Corp. SNE, +0.76% in his note to clients.
How are other markets trading?
Asian markets closed lower, with Japan’s Nikkei 225 NIK, -0.99% losing 1%, Hong Kong’s Hang Seng Index HSI, -0.39% shedding 0.4% and China’s Shanghai Composite Index SHCOMP, -1.09% retreating 1.1%.
European stocks were higher, with the Stoxx Europe 600 SXXP, +0.63% rising 0.6%.
The price of oil CLJ9, +2.60% continued to rise, while gold GCJ9, +0.96% settled higher and the U.S. dollar DXY, -0.59% edged lower.
—Mark DeCambre contributed to this article
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