Dow And S&P 500 Extend Upward Trend, Nasdaq Posts Slim Loss - U.S. Commentary

(RTTNews) - After trending higher in recent sessions, stocks experienced relatively choppy trading over the course of the trading day on Wednesday.

The major averages eventually ended the day mixed, as the Dow posted a strong gain but the Nasdaq closed in the red.

While the Nasdaq edged down 4.01 points or 0.1 percent to 3,725.01, the Dow jumped 135.54 points or 0.9 percent to 15,326.60. The S&P 500 rose 5.14 points or 0.3 percent to 1,689.13, closing higher for the seventh consecutive session.

The pullback by the Nasdaq came after the tech-heavy index closed higher for six straight sessions and reached its best closing level in nearly thirteen years on Tuesday.

A steep drop by shares of Apple (AAPL) weighed on the Nasdaq, with the tech giant falling by 5.4 percent amid disappointment with the price of its new lower-cost iPhone.

Meanwhile, the Dow and the S&P 500 added to the gains posted over the past few sessions, reaching their best closing levels in almost a month.

Ongoing uncertainty about the situation in Syria kept some traders on the sidelines following President Barack Obama's address to the nation last night.

While Obama continued to call for the regime of Syrian President Bashar al-Assad to be held accountable for the alleged use of chemical weapons, he asked Congress to delay a vote on taking military action in order to allow a new round of diplomatic efforts to play out.

Syria has agreed to a Russian proposal to give up its chemical weapons, although Obama said it is too early to tell whether the offer will succeed.

Obama noted that he's ordered the U.S. military to maintain their current posture to keep the pressure on Assad and to be in a position to respond if diplomacy fails.

In economic news, the Commerce Department released a report showing that U.S. wholesale inventories rose by less than expected in July.

The report said wholesale inventories inched up by 0.1 percent in July following a 0.2 percent decrease in June. Economists had expected inventories to rise by 0.3 percent.

Sector News

While many of the major sectors ended the day showing only modest moves, health insurance stocks showed a strong move to the upside. The Morgan Stanley Healthcare Payor Index rose by 1.5 percent, reaching a new record closing high.

Health Net (HNT) and Molina Healthcare (MOH) turned in two of the health insurance sector's best performances, advancing by 2.7 percent and 2.9 percent, respectively.

Housing stocks also turned in a strong performance on the day, resulting in a 1.2 percent gain by the Philadelphia Housing Sector Index. With the gain, the index reached its best closing level in a month.

Meanwhile, airline stocks came under pressure after showing a strong upward move over the past two weeks. After ending the previous session at a one-month closing high, the NYSE Arca Airline Index fell by 1.5 percent.

Utilities stocks also saw considerable weakness on the session, dragging the Dow Jones Utilities Average down by 1.1 percent. Exelon (EXC) and Edison International (EIX) posted notable losses.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region moved modestly higher during trading on Wednesday. Japan's Nikkei 225 Index closed just above the unchanged line, while China's Shanghai Composite Index edged up by 0.2 percent.

The major European markets also ended the day on the upside. While the German DAX Index rose by 0.6 percent, the U.K.'s FTSE 100 Index and the French CAC 40 Index both inched up by 0.1 percent.

In the bond market, treasuries closed moderately higher amid a positive reaction to the results of the Treasury Department's ten-year note auction. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its prices, fell by 3.9 basis points to 2.92 percent.

Looking Ahead

Trading on Thursday may be impacted by the release of the Labor Department's reports on weekly jobless claims and import and export prices.