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Slim Victory Leaves Stocks at Fresh Record Highs
08-Nov-17 16:30 ET
Dow +6.13 at 23563.36, Nasdaq +21.34 at 6789.13, S&P +3.74 at 2594.38

https://www.briefing.com/investor/markets/stock-market-update/2017/11/8/slim-victory-leaves-stocks-at-fresh-record-highs.htm

[BRIEFING.COM] Equities ticked higher on Wednesday, with all three major indices--the Nasdaq (+0.3%), the S&P 500 (+0.1%), and the Dow (unch)--finishing at new record highs.

Technology shares outperformed in the midweek session, with video game developers showing particular strength. Take-Two Interactive (TTWO 117.65, +11.26)--which owns labels like Rockstar Games and 2K Games--jumped 10.6% after reporting better-than-expected revenues for its fiscal second quarter and issuing above-consensus sales guidance for the holiday season.

Meanwhile, the S&P 500's consumer staples sector finished at the top of the sector standings, settling higher by 1.1%. Heavyweights like Wal-Mart (WMT 90.26, +1.31), PepsiCo (PEP 112.00, +1.53), Kraft Heinz (KHC 79.58, +1.40), Costco (COST 169.05, +2.77), and Walgreens Boot Alliance (WBA 68.90, +0.98) all finished with gains between 1.4% and 1.8%.

Conversely, the heavily-weighted financial sector (-0.6%) moved lower for the fourth session in a row, keeping the broader market's gain in check. Within the group, lenders like Bank of America (BAC 26.79, -0.39), Wells Fargo (WFC 54.26, -0.79), and JPMorgan Chase (JPM 97.64, -1.11) finished with losses between 1.1% and 1.4%.

In other corporate news, Snap (SNAP 12.91, -2.21) tumbled 14.6% after reporting below-consensus revenues and daily active user growth for the third quarter. Snap shares were down as much as 22.0% in overnight trading, but strengthened following news that Chinese tech giant Tencent (TCEHY 49.77, +0.01) has purchased a 12.0% stake in the social media company.

Shares of Time Warner (TWX 88.50, -6.16) also declined on Wednesday, finishing lower by 6.5%, following a Financial Times report that the U.S. Department of Justice may force the company to sell CNN in order to be acquired by AT&T (T 33.44, +0.37). An alternative option would be selling AT&T's satellite television unit DirecTV--according to the New York Times.

Elsewhere, crude oil futures had a volatile session following the Department of Energy's weekly inventory report, which showed that U.S. stockpiles unexpectedly increased by 2.2 million barrels last week. In the end, WTI crude futures settled lower by 0.4% at a price of $56.81/bbl, and energy stocks within the S&P 500 finished behind the broader market, moving lower by 0.4%.

U.S. Treasures moved lower during the midweek session, sending yields higher across the curve; the benchmark 10-yr yield climbed two basis points to 2.33%. Meanwhile, the U.S. Dollar Index slipped 0.1% to 94.75, gold climbed 0.6% to $1,283.70/ozt, and the CBOE Volatility Index (VIX 9.76, -0.13) dropped 1.3%.

Wednesday's economic data was limited to the weekly MBA Mortgage Applications Index--which was unchanged from the prior week.

On Thursday, investors will receive two economic reports--the weekly Initial Claims Report (Briefing.com consensus 231K) and September Wholesale Inventories (Briefing.com consensus +0.3%). The two pieces of data will be released at 8:30 ET and 10:00 ET, respectively.

In addition, the Senate's version of a tax reform bill is scheduled to be released on Thursday.

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