The Dow Jones Industrial Average on Wednesday morning was getting a boost from Nike Inc.’s shares, but the broader market was stumbling amid news that Congress was moving to launch a formal impeachment inquiry against President Trump.
Separately, shares of Philip Morris and Altria were both climbing after ending merger talks.
What are major indexes doing?
The Dow Jones Industrial Average DJIA, +0.03% rose 30 points, or 0.1%, at 26,834, while the S&P 500 SPX, -0.26% gave up 0.1% at 2,963. The Nasdaq Composite Index COMP, -0.50% was off 0.3% at 7,969.
What’s driving the market?
After Tuesday’s market close, House Speaker Nancy Pelosi announced an impeachment inquiry into Trump following a growing chorus of criticism following reports the president pressed Ukraine’s president to investigate Democratic presidential candidate Joseph Biden and his son.
News reports that such an announcement was imminent was blamed for putting some pressure on stocks in Tuesday’s session. Analysts said the inquiry is a potential drag for stocks, though the potential may be limited barring an indication that support for Trump is slipping in the Republican-controlled Senate. A vote by the House to impeach would be followed by a trial in the Senate, which would decide the president’s fate.
Read: Why Trump impeachment threat is rattling stock-market investors — at least for now
“Given how this increases the prospect of heightened political uncertainty in the world’s largest economy and compounds the list of geopolitical factors, risk assets and global equities in particular remain in the firing line,” said Lukman Otunuga, senior research analyst at FXTM, in a note.
Analysts questioned, however, whether the impeachment cloud would have a lasting effect on stocks.
See: How Pelosi’s impeachment inquiry into Trump could be a plus for one stock sector
“We would note that this is only a small step on the road to impeachment, which would ultimately require a 2/3 majority in the Republican-controlled Senate and that it is not clear yet whether the House will vote to endorse the inquiry, so leading to charges against Trump,” said Adam Cole, chief currency strategist at RBC Capital Markets, in a note.
Other factors were also blamed for Tuesday’s market weakness, including continued uncertainty around U.S.-China trade as well as some downbeat consumer-confidence data.
In other events expected Wednesday, U.S. August home sales are published at 10 a.m.
Chicago Fed President Charles Evans, Kansas City Fed President Esther George, Fed governor Lael Brainard and Dallas Fed President Robert Kaplan all speak at various events today.
Which stocks are worth watching?
Philip Morris International Inc. PM, +5.81% and Altria Group Inc. MO, +0.34% surprised the market early Wednesday with the news that they are ending their merger talks and will instead focus on launching a smokeless tobacco product in the U.S. Shares of Philip Morris were up 5%, those for Altria were off 0.1%.
Shares of Nike Inc. NKE, +5.05% were up 5.4% as the apparel and footwear maker on Tuesday reported first-quarter earnings and sales that topped Wall Street expectations, including a jump in China.
Best Buy Co. Inc. BBY, -0.87% on Wednesday unveiled financial targets, including $1 billion in additional cost reductions and annual enterprise revenue of $50 billion by 2025. Its shares were down 0.2%.
How are other markets performing?
U.S. Treasury yields rose on Wednesday as inflows into haven assets took a breather, following House Speaker Nancy Pelosi’s decision to move ahead with impeachment proceedings against President Donald Trump on Tuesday. The 10-year Treasury note yield TMUBMUSD10Y, -0.16% was up 1.4 basis points to 1.649%.
Oil futures fell Wednesday as investors await official data on U.S. crude inventories after a trade group reported a rise in stocks late Tuesday. Also weighing on prices were news reports saying Saudi Arabia had restored most crude production, recovering from attacks on its facilities earlier this month. West Texas Intermediate crude for November delivery CLX19, -2.69% fell $1.06, or 1.9%, to $56.23 a barrel, while November Brent crude BRNX19, -2.66%, the global benchmark, was off $1.27, or 2%, at $60.85 a barrel.
In Asia overnight Wednesday, the China CSI 300 000300, -0.77% was little changed around 3,870 while Japan’s Nikkei 225 index NIK, -0.36% was also steady at 22,020. European stocks were lower Wednesday with the Stoxx Europe 600 index SXXP, -1.12% off 1.0% at 385.77.
Add Comment