Author: Stephen Culp
NEW YORK (Reuters) – Wall Street fought for direction after coming out of the opening door on Wednesday, as fears of investors over global economic slowdown slowed down the spirit of hunters on bargain on the first trading day of the new year.
Consumer discretion drew S & P and Nasdaq into a positive territory, while healthcare companies sought Dow.
Health () and so-called. Defense sectors, such as real estate <.splrcr> and utilities (), provided the largest withdrawal for the S & P 500.
The session began to move sharply after separate reports showed a slowdown in China's plant and eurozone activities, suggesting that the current trade dispute between the United States and China took the toll on global production.
As 2019 is the worst year for US stocks for decades in the rearview mirror, some analysts see the "January effect" that attracts investors on the table.
"We had a bad quarter and negative returns for the year," said Bucky Hellwig, senior vice president of BB & T (NYSE 🙂 Wealth Management in Birmingham, Alabama. "However, we could see a friendlier Fed than we did last year and we could see a shift in trade talks."
"Shares are inexpensive and investors want to invest money in the new year," Hellwig added.
Dow Jones Industrial Average () grew 20.04 points or 0.09 percent to 23.347.5, while S & P 500 () rose 8.71 points or 0.35 percent to 2.515.56 and Nasdaq Composite ) added 53.58 points, or 0.81 percent to 6.688.85.
Of the 11 major sectors in the S & P 500, six were in a positive area.
Energy () stocks enjoyed the highest percentage in the S & P 500, fueled by a 1.7 percent drop in crude oil prices. The group was the worst S & P sector in 2018.
Banks got the boost Barclays (LON :), when a broker wrote in a survey to help the sector outgrow S & P this year. Financial gains gained, Dow Jones's industrial average, rose to Goldman Sachs (N 🙂 and JPMorgan (N :).
Tesla Inc. (O 🙂 delivered shorter than expected Model 3 limousines in the fourth quarter and reduced car prices in the US due to the loss of green tax credit. Shares of electric car makers slipped 6.5 percent.
General Electric Co (N 🙂 jumped for 6.6 percent in heavy trading because hunters at cheap prices bought shares after a 56.6 percent fall in 2018.
In the coming weeks, the reporting period for the fourth quarter will be in progress. Analysts believe that S & P 500 has a profit of 15.8 percent, which is significantly less than 28.4 percent in the third quarter.
Investors on Friday watched PMI's report on US plant operations and pay figures at the Ministry of Labor Friday due to signs of cracking in a rather strong US economy.
The closure of the US federal government entered its twelfth day before the Democrats took over the helm of the US House of Representatives, raising the scene of a possible congestion at the congress because MPs wrestled around funding for the US-Mexico border wall.
Progress issues exceeded the number of those who shrunk to NYSE at a ratio of 1.98 to 1; at Nasdaq, the ratio of 1.99 to 1 favored progress.
The S & P 500 has not announced the new 52-week maximum and 3 new drops; Nasdaq Composite recorded 9 new and 58 new downs.