Dow Jones Analysis: Healthcare Gains 1.5% Offset Materials Loss Near Records

Major U.S. Stock Indices Show Mixed Performance as Dow Hits Fresh Record

The major U.S. stock index futures are mixed shortly after the opening on Wednesday. The Dow Jones Industrial Average did hit a fresh record high earlier in the session before turning lower.

At 14:55 GMT, the blue chip Dow is at 49,380.02, down 82.06 or -0.17%. The benchmark S&P 500 Index is trading 6,953.14, up 8.32 or +0.12% and the Nasdaq Composite is at 23,614.687, up 67.514 or +0.29%.

Sector Performance: Healthcare Leads While Materials Lag

The major sectors also reflect the mixed results with 6 out of 11 sectors lower. Healthcare is leading with a 1.52% gain, followed by communication services, up 0.66% and consumer discretionary at 0.55%.

Materials is the worst performer, posting a 1.14% loss. Next is financials, down 1.03% and utilities, off by 0.71%.

Technology is nearly flat with a 0.06% gain.

Top Stock Movers: Intel Surges While Energy Storage Names Tumble

Switching to stocks, Intel Corp is the biggest gainer, up 6.47%. Valero Energy continues to impress this week with a 5.05% gain on Wednesday. Eli Lilly is up 4.88%, helping to boost the healthcare sector.

Western Digital, First Solar and Seagate Technology are all down over 8.50%.

Commodity Price Swings Drive Market Direction

The mixed sectors and stocks suggest there is no major theme in the market. However, the volatility in crude oil and the steep break in gold and silver suggest today’s trade may be greatly influenced by commodity-linked stocks.

Venezuela Oil Deal Boosts Energy Refiners

Crude oil is grabbing headlines today as prices dropped after President Trump said interim leaders in Venezuela will be turning over as much as 50 million barrels of oil to the U.S., driving concerns over increasing oil supply.

While this move directly impacts supply, it also drives demand for shares of oil refiners like Valero Energy and Marathon Petroleum, which are up 5.05% and 2%, respectively. CNBC is reporting that oil sales from Venezuela will continue indefinitely and sanctions would be reduced. Chevron is also higher. The energy giant strengthened after the Financial Times reported Chevron plans to make a bid on some of Lukoil’s assets, alongside private equity firm Quantum Capital.

Technical Analysis: S&P 500 Futures Eye Record High at 7,014

Technically, the trend is up despite today’s mixed trade. March E-mini S&P 500 Index futures inched through a recent double-top at 6,988.00, putting the market in a position to extend the rally into the futures record high at 7,014.00.

The market is well supported by three trend indicators: the uptrend line at 6,986.25, the 50-day moving average at 6,885.87 and the swing bottom at 6,866.75.

More Information in our Economic Calendar.