Dow Rebounds in Mixed Trading; Nasdaq Slips

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Stocks were mixed Wednesday as investors looked to claw back the previous session’s declines while tracking debt-ceiling negotiations and the rolling global power crisis.

© TheStreet Dow Rebounds in Mixed Trading; Nasdaq Slips

The Dow Jones Industrial Average, which turned negative for the month after Tuesday’s 570-point slump, rose 125 points, while the S&P 500 advanced 0.27%.

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The Nasdaq Composite, which started off in the green, ticked down 0.09% at last check.

Benchmark 10-year note yields rose slightly to 1.537% after touching a high of 1.567% Tuesday.

Senate Majority Leader Chuck Schumer said Democrats were working on a plan to avoid a government shutdown.

JPMorgan Chief Executive Jamie Dimon said he and his colleagues were preparing for a “potentially catastrophic” failure to raise the debt ceiling this week. Senate lawmakers continue to bicker into the final hours ahead of tomorrow’s deadline.

Boeing was leading the Dow after the aerospace giant said a 737 Max test in China last month “went off without a hitch.” The could provide authorities with enough data to return the aircraft to service in the world’s biggest aviation market.

Micron shares fell after one of the world’s biggest memory chipmakers said supply-chain disruptions in the tech sector would hit its current-quarter sales. Analysts at JPMorgan and Mizuho last week cut their price targets on the company.

Dollar Tree surged the most in more than two years Wednesday after the discount retailer said it would begin testing the sale of higher-priced items in some of its stores and boosted its share buyback program to $2.5 billion.

West Texas Intermediate oil futures for November delivery were off slightly to $74.98 a barrel while Brent contracts for the same month, the global pricing benchmark, were marginally lower at $78.68 per barrel.

Morgan Stanley said in a report that Brent crude at $80 a barrel would be “destructive” to demand.

“Oil prices have disconnected from the marginal cost of supply. They are traveling to the level where demand destruction kicks in,” Morgan Stanley said.

This article was originally published by TheStreet.

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