US stocks closed firmer on Wednesday after relief over the tone of the Federal Reserve’s rate meeting minutes.
Although there was dissent from hawks who wanted a September rate hike, the majority of the FOMC still backed a hold position.
The hawks, although in a minority, did warn that to delay a rate hike could spur recession down the road. Read more.
Even after the minutes, market expectations for a December rate hike are less than 60%.
The S&P 500 market bellwether closed up 0.1% at 2139 and led by retailer Best Buy Co (NYSE:BBY) up 3.8% to $39.77.
The S&P Midcap 400 closed up 0.3% to 1526, and was led higher by Corrections Corporation of America (NYSE:CXW) up 7.2% to $14.36.
The S&P Smallcap 600 finished up 0.2% at 745 and led by Voxx Intl Corp (NASDAQ:VOXX) up 49% to $3.80 after the electronics maker reported quarterly earnings after the closing bell on Tuesday.
Early trading
US stocks opened narrowly changed on Wednesday as trepidation set in over the Federal Reserve rate meeting minutes due later in the session and oil prices began to tumble on ebbing hopes of Russia’s support for OPEC supply cuts.
The US benchmark WTI was down 1.4% to $50.08 after growing uncertainty over Russia’s willingness to cut production even as global oil supplies increased last month.
The increase in oil production comes at a time when producers inside the Organization of Petroleum Exporting Countries are in discussions with Russia, a non-OPEC player, on ways to chip away the glut and pull prices up. OPEC agreed in Algiers this month to cut supplies of oil at a finalising meeting in November.
The S&P 500 market bellwether was both sides of unchanged and last seen flat at 2136. Indicating how threadbare market activity was, the best gains of the session so far came from two retail stocks with little news-wise to show.
Kroger Company (NYSE:KR) whose shares were up 2.7% to $30.92 on no fresh news.
Best Buy (NYSE:BBY) was next, at up 2.4% to $39.25. Analysts said the stock was trading on technical factors as investors may be interested in a cross of the next upside pivot targets of $39.28 and $40.00.
Meanwhile, the top fallers were Cisco Systems (NASDAQ:CSCO) down 3.1% to $30.08, and Alcoa (NYSE:AA) extending losses from poor earnings on Tuesday, down a further 3% to $27.08.
The September FOMC meeting was considered by pundits to have been the most fractious in living memory and certainly the market view now is that the central bank will finally hike rates one year on in December. Fed officials William Dudley and Esther George were also due to speak later this session.
Things were more directional for the S&P Midcap 400 which gained 0.14% to 1523 and there was no mistake about who was leading it, quite firmly at that. Corrections Corporation of America (NYSE:CXW) was up 9% to $14.60. Although no fresh news, on September 27, the company announced a restructuring of its corporate operations and implementation of a cost reduction plan.
The S&P Smallcap 600 was up 0.3% to 746 and led higher by Voxx Intl Corp (NASDAQ:VOXX) up 27.5% to $3.25 after the electronics maker reported quarterly earnings after the closing bell on Tuesday.
Pre-Open
US shares are indicated opening softer on Wednesday as investors turned anxious ahead of Fed meeting minutes and OPEC supply details.
The S&P 500 future points to a 0.2% decline at the opening.
Wall Street is anxiously awaiting minutes from the Federal Reserve's latest meeting, due to be released at 1400 EDT (1800 GMT).
Investors are watching for clues on the pressure Chair Janet Yellen may have faced from inside and outside the Fed to raise interest rates -- which have been kept steady since December 2015. Many pundits have claimed the September meeting was the most fractious from the central bank in living memory.
The odds of a rate hike in December have increased in recent weeks after a string of positive reports on the US economy.
Immediately either side of the minutes, Fed officials William Dudley and Esther George are delivering speeches which may arouse market reaction.
The latest twists in the oil price saga may afford some direction as energy club OPEC is set to give an update on Wednesday on just how much crude the cartel's members are pumping. The group has reached a tentative deal to cut production - but the details must still be agreed.
The US benchmark West Texas Intermediate was edging up 0.1% to $50.85 per barrel.
Among stocks, Kinder Morgan (NYSE:KMI), the largest energy infrastructure company in North America, is down 1.2% at $20.80 in pre-market trading after trespassers broke into its pipeline location in Washington.
But Apple Inc (NASDAQ:AAPL) shares were higher pre-market at $117.20, up 0.8%, after rival Samsung Electronics (OTCMKTS:SSNLF) woes over the disastrous Note 7 just won’t go away.
The Korean company is coming under financial pressure after killing off its fire-prone Galaxy Note 7 smartphone.
The company on Wednesday cut its profit estimate for the July to September quarter by $2.3bn to $4.6bn.
Shares dipped 0.7% in Seoul, bringing total losses for the week to 10%.