There’s NO reason why stocks should move higher – but they did!

Stock Market Update Wednesday, August 28th, 2019

Stocks got off to a lower start this morning.

But after the first 30 minutes of trading, the major indices turned positive and continued to move higher throughout the session.

There’s absolutely no reason why stocks should move higher.

In fact, there were some concerning news:

  • The inverted yield curve between the 10-Year Note and 2-Year Note continued to be in the spotlight today. And was a big reason stocks overseas struggled, and U.S. stocks opened lower.
  • The 30-Year Bond dropped to a record low today. This morning the yield was 1.907%, dipping below its previous record low of 1.916%.

  • The U.S.-China trade war has a dealine coming up that traders are keeping a close eye on. On Sunday, the U.S. is set to impose tariffs on $300 billion worth of Chinese goods, and China has committed to respond with tariffs on the same day.

But a rally in energy stocks helped change the mood, and the major indices finished the day with gains.

Here’s where the major indices ended the day:

  • The S&P finished with a 0.7% gain. Up 19 points, the S&P ended at 2,888.
  • The DOW ended higher by 1.0%. Adding 258 points, the DOW closed at 26,036.
  • The NASDAQ was up 0.4%. With a 30 point gain, the NASDAQ finished at 7,857.

Crude Oil (CL) finished higher for the 2nd day in a row after a big drop in U.S. inventories. With a 1.5% gain, CL ended at $55.76 a barrel. Today’s Crude Oil inventories showed a 10 million barrel decreasein U.S. stock piles

Energy stocks did well after the move in oil.

Chevron (CVX) was higher by 0.9%, Exxon Mobil (XOM) was higher by 0.7%. The two stocks part of the DOW 30, helped the index lead the way today.

Here is the economic calendar for the week:

Real Time Economic Calendar provided by Investing.com.

This Stock Market Update was provided by Rockwell Trading Services LLC.

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