Stocks Close Modestly Higher Ahead Of Several Key Events - U.S. Commentary

(RTTNews) - Stocks showed a lack of direction over the course of the trading session on Wednesday but managed to end the day modestly higher. The higher close on the day came on the heels of the pullback seen over the two previous sessions.

The major averages closed in positive territory but still off the record highs set last Friday. The Dow rose 37.46 points or 0.2 percent to 21,173.69, the Nasdaq climbed 22.32 points or 0.4 percent to 6,297.38 and the S&P 500 edged up 3.81 points or 0.2 percent to 2,433.14.

Traders seemed reluctant to make more significant moves ahead of several potentially market-moving events on both sides of the Atlantic on Thursday.

Former FBI Director James Comey's testimony before the Senate Intelligence Committee is likely to be in the spotlight tomorrow.

Comey's prepared statement released by the committee appears to confirm some recent reports about his interactions with President Donald Trump, including the president's request for loyalty.

In the statement, Comey notes that Trump told him, "I need loyalty, I expect loyalty" during a dinner at the White House in January.

Comey also seems to confirm reports that Trump wanted him to drop an investigation of former National Security Adviser Michael Flynn's contact with Russian officials.

A day before Comey is due to testify, Trump announced on Twitter that he intends to nominate former Justice Department official Christopher Wray as the new FBI Director.

U.K. voters will also head to the polls on Thursday in a closely watched election, while the European Central Bank is scheduled to make its latest monetary policy announcement.

Among individual stocks, shares of Ambarella (AMBA) fell sharply after the video-compression chipmaker reported better than expected fiscal first quarter results but provided disappointing guidance for the current quarter.

Truck and engine maker Navistar (NAV) also posted a notable loss after reporting a wider than expected second quarter loss despite better than expected revenues.

On the other hand, shares of Sears Holdings (SHLD) rebounded after a report from Business Insider said the company is closing more than 72 stores.

Sector News

Airline stocks showed a strong move to the upside over the course of the trading session, driving the NYSE Arca Airline Index up by 1.6 percent. With the gain, the index reached its best closing level in over fifteen years.

Hawaiian Airlines parent Hawaiian Holdings (HA) posted a substantial gain after raising its expectations for growth in second quarter operating revenue per available seat mile.

Significant strength was also visible among banking and trucking stocks, with the Dow Jones Banks Index and the Dow Jones Trucking Index climbing by 1.1 percent and 1 percent, respectively.

On the other hand, energy stocks saw substantial weakness amid a steep drop by the price of crude oil. Crude oil for July delivery plunged $2.47 to $45.72 a barrel following the release of a report showing an unexpected weekly increase in crude oil inventories.

Reflecting the weakness in the energy sector, the Philadelphia Oil Service Index plummeted by 4.5 percent, the NYSE Natural Gas Index tumbled by 3.2 percent and the NYSE Arca Oil & Gas Index slumped by 1.7 percent.

Other Markets

In overseas trading, stock markets across the Asia-Pacific region turned in another mixed performance on Wednesday. Hong Kong's Hang Seng Index edged down by 0.1 percent, while Japan's Nikkei 225 Index inched slightly higher and China's Shanghai Composite Index jumped by 1.2 percent.

Meanwhile, the major European markets all ended the day in negative territory. While the U.K.'s FTSE 100 Index fell by 0.6 percent, the German DAX Index and the French CAC 40 Index both edged down by 0.1 percent.

In the bond market, treasuries moved lower over the course of the session after initially showing a lack of direction. As a result, the yield on the benchmark ten-year note, which moves opposite of its price, rose by 3.1 basis points to 2.178 percent.

Looking Ahead

Comey's testimony, the U.K. election and the ECB announcement will be in focus during trading on Thursday, likely overshadowing the Labor Department's report on weekly jobless claims.