Stocks rose by moderate margins on Wednesday, as traders did some bargain hunting on a day that was light on market-moving news. The major averages all closed in positive territory following a largely lackluster session, offsetting some of yesterday's steep losses.
With little economic news to go on today, traders looked to President Barack Obama, who delivered remarks regarding job creation and deficit reduction this afternoon at the White House following a meeting with Congressional leaders.
The President reiterated his proposals for more infrastructure spending, tax breaks for small businesses and incentives rewarding energy efficiency in American homes.
Earlier, traders were presented with a report from the Commerce Department showing that wholesale inventories increased by 0.3 percent in October following a revised 0.8 percent decrease in September.
The increase surprised economists, who had expected inventories to fall 0.5 percent compared to the 0.9 percent drop originally reported for the previous month. With the unexpected monthly increase, wholesale inventories rose for the first time since August of 2008.
Additionally, the Commerce Department said that wholesale sales increased by 1.2 percent in October following an upwardly revised 1.3 percent increase in the previous month.
On the healthcare reform front, reports indicated that a broad agreement was reached among Democratic Party healthcare negotiators, with a new health plan put forward to replace the government-run insurance option with a scaled-back non-profit plan.
Traders also digested the comments of a panel set up by Congress to oversee the Troubled Asset Relief Program or TARP released today. As per the report, the $700 billion bailout did succeed in preventing an all-out panic earlier in the year but fell short of many targets set by the Congress.
On a related note, Treasury Secretary Timothy Geithner revealed a letter sent to House and Senate leaders that the TARP program is being extended to October 2010. Geithner stated that the program's continuation would help to further stabilize the economy and respond to "unforeseen threats."
The major averages all saw some upside in late-session dealing, finishing near their best levels of the day. The Dow advanced by 51.08 points or 0.5 percent to 10,337.05, the Nasdaq closed up 10.74 points or 0.5 percent at 2,183.73 and the S&P 500 rose by 4.01 points or 0.4 percent to 1,095.95.
Sector News
Gold and steel stocks some saw some of the day's strongest gains, with the NYSE Arca Gold Bugs Index and the NYSE Arca Steel Index advancing by 2.8 percent and 2.4 percent, respectively. The gains helped the indices to bounce off of multi-week lows.
Computer hardware stocks also ended the day notably higher, driving the NYSE Arca Computer Hardware index up by 2.1 percent. The index finished the session at its best closing level in over two weeks.
Shares of Dell Inc. (DELL) helped to lead the sector higher, posting a gain of 2.3 percent. With the gain, the stock bounced off of the five-month closing low set on Tuesday.
On the other hand, healthcare provider stocks had a disappointing outing, with the Morgan Stanley Healthcare Provider Index falling by 1.4 percent on the session.
Healthcare related stocks continued to fluctuate as lawmakers continued to amend the closely watched healthcare reform bill.
Dow Components
3M (MMM) was the Dow's best performer, posting a gain of 3.4 percent. With the advance, the stock ended the session at its best closing price in nineteen months.
The upward move by 3M came after FBR Capital markets raised its price target on the diversified manufacturer to $100 from $98, citing the company's better-than-expected guidance for 2010 and bullish organic growth outlook. The broker maintained its "Outperform" rating on the stock and raised its earnings estimate for 2010.
Pfizer (PFE), Merck (MRK) and Hewlett Packard (HPQ) also rose, posting gains in excess of 2 percent, while United Technologies (UTX) saw the steepest loss in the blue chip index, falling by 1.2 percent. The stock ended the session at a one-month closing low.
Other Markets
In overseas trading, stocks markets across the Asia-Pacific region closed mostly lower on Wednesday. Japan's benchmark Nikkei 225 Index fell by 1.3 percent, while Hong Kong's Hang Seng Index fell by 1.4 percent.
The major European markets also saw moderate losses on the day. The U.K.'s FTSE 100 Index fell by 0.4 percent, while the German DAX Index and the French CAC 40 Index both dropped by 0.7 percent.
In the bond markets, treasuries closed lower following largely disappointing results of today's ten-year note auction. Subsequently, the yield on the benchmark ten-year note, which moves opposite of its price, closed at 3.423 percent, posting a gain of 3.1 basis points.
Looking Ahead
Thursday, trading may be livelier as data on jobless claims and the trade balance may give the markets a jolt following a series of days light on economic catalysts.
For comments and feedback contact: editorial@rttnews.com
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.