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Current Futures: Dow +6.00, S&P +1.50, NASDAQ +14.75
U.S. markets found the strength to post small gains on Wednesday, after three consecutive days in which the major U.S. indexes traded only in the red.
Most of the gains were seen in the healthcare sector, as U.S. legislators are aiming to make the medical services accessible for most citizens, something that should increase the sectors’ profitability. TheLFB-Forex.com Trade Team notes that every company from the healthcare sector advanced on Wednesday, which helped the sector advance as much as 2.5%. Consequently, the biotechnology sector rose more than 3% on Wednesday as investors consider this sector to benefit from the new healthcare plan as well.
Even though most sectors advanced on Wednesday, the financial sector traded deep into red territory. This happened after the rating agency S&P downgraded 18 banks, from which five were cut to junk, which means that their debt is seen very close to the default level. Wells Fargo, Capital One and KeyCorp are among the banks that now have a lower rating, as a consequence of the new set of regulations and harder business conditions. In other news from the financial sector, JP Morgan, Morgan Stanley, Goldman Sachs, U.S. Bancorp and BB&T Corp paid back their bailout funds to the U.S. Treasury this morning.
During the U.S. session, a release showed that inflation rose 0.1% in May, less than what the market had expected. From one year ago in May, inflation is down 1.3%, the biggest decrease since 1950, TheLFB-Forex.com Trade Team notes. At the same time, the core read is standing 1.8% higher from year ago, suggesting that the relationship between the core and the headline numbers had been lost lately.
On Wednesday, the Dow Jones index gained 17.00 points (0.20%) to 8,521.67, while the S&P 500 advanced 1.65 points (0.18%) to 913.62
Crude oil for May delivery was recently trading at $71.00 per barrel, higher by $0.50.
Gold for May delivery was recently trading up by $5.30 to $937.50
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