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Stock Market News for July 12, 2017

The Dow and the S&P 500 ended nearly flat on Tuesday, while the Nasdaq posted its gain for a third consecutive session, influenced by recent political events. Initially, the broader markets moved lower following disclosure of emails by Donald Trump Jr. containing "high level and sensitive information" regarding Hillary Clinton that would aid the Trump presidential campaign.

However, broader markets recovered as Senate Republican leader Mitch McConnell announced delay in the start of Senate’s summer recess, providing lawmakers additional time to progress on the new health care law. Additionally, energy shares moved north due to uptick in oil prices as Energy Information Administration (EIA) lowered its projection for U.S. output.

For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article.

The Dow Jones Industrial Average (DJI) advanced marginally by 0.55 points to close at 21,409.07. The S&P 500 fell 0.1% to end at 2,425.53. The tech-heavy Nasdaq Composite Index advanced 0.3% to finish at 6,193.30. A total of around 5.9 billion shares were traded on Tuesday, lower than the last 20-session average of 6.9 billion shares. Advancers outnumbered declining stocks on the NYSE by a 1.10 to 1 ratio.

Donald Trump Jr. Disclose Emails

Investors digested two major political developments in U.S. on Tuesday. Initially, broader markets had dropped following the disclosure of a series of emails by Donald Trump Jr. that were exchanged with Rob Goldstone, who has connections with President Donald Trump.

The emails offered Trump Jr. "high level and sensitive information" from the Russian Government that would implicate Hillary Clinton, a move intended to support Trump’s presidential campaign. The exchange of emails was reported to have taken place before Trump Jr. met with Russian attorney Natalia Veselnitskaya on June 9, 2016. Speaking to NBC news, Veselnitskaya however ruled out the fact that she had any association with the Kremlin.

The meeting is important as Robert Mueller, a special counsel and congressional committees are probing whether the Trump campaign had any connection with the Kremlin. This development raised concerns that the controversy related to Russian interference in Trump’s presidential campaign would worsen.

Delay in Senate’s Summer Recess

Meanwhile, broader markets recovered from its initial losses after Senate majority Leader Mitch McConnell declared delay in the start of Senate’s summer recess. McConnell delayed Senate’s summer recess till third week of August providing lawmakers extra time to progress on major legislative issues including health care Bill.

This delay raised prospects for the passage of the new health care law that is crucial toward implementing Trump’s other pro-growth agendas including tax reforms. This in turn helped the broader markets to pare initial losses.

Energy Shares Gain

Oil prices continued to move north on Tuesday, following the release of a report by the EIA. The government agency lowered its 2018 U.S. output projection by 1% to 9.90 million barrels per day. Moreover, speculation about a possible production cut from Libya and Nigeria boosted oil prices.

The increase in oil prices had a positive impact on the energy shares. WTI crude prices advanced by $0.64, or 1.4%, to $45.04 a barrel. The broader Energy Select Sector SPDR (XLE) advanced 0.6%, emerging as the best performing sector of S&P 500. Some of its key holdings, including EOG Resources EOG and Halliburton Co HAL increased 1.1% and 0.9% respectively. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Economic Data

As per the Commerce Department, wholesale inventories increased 0.4% in May, posting their largest gain since December 2016. The figure came in well above the consensus estimate of an increase of 0.3%. Meanwhile, as per the Labor Department job openings in May declined to 5.7 million.

Stocks that made Headlines

Abercrombie Denies Sale Transaction, Stock Plunges 21%

Shares of Abercrombie & Fitch Co. ANF have fallen nearly 21%, after talks of selling itself were suspended by the company. (Read More)

Halcón to Vend Williston Assets, Eyes Delaware Basin

Shares of US-based upstream company Halcón Resources Corporation HK moved up 51.35% to eventually close at $6.75 on Jul 12. (Read More)

More Stock News: 8 Companies Verge on Apple-Like Run                                                             

Did you miss Apple's 9X stock explosion after they launched their iPhone in 2007? Now 2017 looks to be a pivotal year to get in on another emerging technology expected to rock the market. Demand could soar from almost nothing to $42 billion by 2025. Reports suggest it could save 10 million lives per decade which could in turn save $200 billion in U.S. healthcare costs.

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Halliburton Company (HAL): Free Stock Analysis Report
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Abercrombie & Fitch Company (ANF): Free Stock Analysis Report
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