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Chinese gaming stocks have plunged over fears of a crackdown in Macau.
(Paul Yeung/Bloomberg)
Stocks were mixed on Wednesday, as investors remain anxious about the global economy. Rising Covid-19 cases around the globe are denting sales for many companies.
In afternoon trading, the
Dow Jones Industrial Average
was up 198 points, or 0.6%, after the index tumbled 292 points on Tuesday to close at 34,577. The
S&P 500
rose 0.7%, and the
Nasdaq Composite
was up 0.4%. The S&P 500 is still down almost 1.5% from its all-time high, hit Sept. 2. The 10-year Treasury yield rose to 1.32%.
Industrial production in the U.S. rose 0.4% month-over-month in August, in line with estimates. Production rose 5.9% year-over-year.
“Stronger demand for durable goods suggest further upside to production after supply issues are resolved into next year,” wrote Andrew Hollenhorst, Citigroup economist.
The
Industrial Select Sector SPDR
Exchange-Traded Fund (XLI), many components of which benefit from strong spending on equipment, rose 1%
As companies continue to invest in new equipment for longer-term growth, “industrial production and capital expenditures, that’s going to be working in the market’s favor,” said Yung-Yu Ma, chief investment strategist at BMO Wealth Management.
Overseas, Hong Kong’s
Hang Seng Index
fell 1.8% as Asian investors focused on a sharp slowing in Chinese retail sales. The consensus expectation was for August retail sales to grow 7% year over year, but the reading came in at just 2.5%. Industrial production rose 5.3%, below expectations for 5.8%.
“The no tolerance for Covid spread and the consumer reaction was clearly apparent in the retail sales figure out of China for August,” writes Peter Boockvar, chief investment officer at Bleakley Advisory Group.
The pan-European
Stoxx 600
declined 0.8%, with the spotlight falling on U.K. inflation, which rose to 3.2% in August in the biggest-ever yearly leap.
Analysts have noted that investor sentiment more broadly is mixed as concerns continued to center on whether a market correction is coming.
“Yesterday, the S&P 500 closed -0.32% away from its 50-day moving average, and the index has only closed below that trailing average on one occasion since March 8 (back on June 18),” noted Jim Reid, a strategist at Deutsche Bank. “Overall we…
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