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The recovery from a brutal December rolls on.
Stocks lost steam late in the day after President Donald Trump walked out of a government shutdown meeting with Congressional leaders.
Energy stocks helped propel the market higher again. US oil prices spiked another 5.2% to $52.36 a barrel on reassuring comments from Saudi Arabia.
Crude has advanced eight straight days, the longest streak since July 2017. Apache (APA), Hess (HES) and ConocoPhillips (COP) climbed more than 3% apiece.
We were busy today. Here are some market movers:
What a difference a month makes.
Saudi Energy Minister Khalid al-Falih reassured investors on Wednesday that the country is on track to reduce crude output by its targeted amount.
Investors have worried that oil supply far outstrips demand, particularly as the global economy is expected to slow this year.
Remember the Christmas Eve massacre? The Dow plunged more than 650 points in on a trading day shortened by, eh, holiday festivities. Since then, the Dow has roared back 10%.
Our colleague Matt Egan explains what’s behind the stunning turnaround:
The Federal Reserve on Wednesday sent another signal that it won’t be moving quickly to raise rates in 2019.
Minutes of the US central bank’s last meeting in December showed that the Fed judged “the appropriate extent and timing of future policy firming [is] less clear than earlier,” because of an uncertain economy.
The Fed is wrestling with signs of weakening global growth in Europe and China and a sharp decline in stock prices.
At its final meeting in 2018, the central bank noted there were a number of headwinds that could pose downside risks to the US economy in the new year, including a sharper-than-expected slowdown in global economic growth, a more rapid waning of fiscal stimulus, an escalation in trade tensions and a greater-than-expected negative effect of rising interest rates.
The market value of Snapchat’s parent company keeps disappearing: Snap Inc. (SNAP) is down more than 3%.
Analysts at Jeffries cut Snap’s price target by $1 to $7 because of stagnating user growth. The messaging app is still recovering from a disastrous redesign unveiled last year.
The stock has lost nearly 60% of its value since January 2018.
There’s good news: Jeffries says “prudent financial management and a return to user growth” could double the stock over the next 2 years.
The rebound on Wall Street is carrying the Dow back near the 24,000 level.
The S&P 500 is trying for its first four-day win streak since September.
All three major indexes are up dramatically since Christmas Eve, when the Dow plummeted below 22,000.
Energy stocks are leading the way higher on Wednesday. Apache, Marathon Oil and EOG Resources all climbed 3% or more.
The group was boosted by a 5% surge for US oil prices. Crude is back above $52 a barrel and on pace to close higher for the eighth day in a row. That hasn’t happened since July 2017.
JCPenney (JCP) reported a 3.5% drop in holiday season sales after the market close on Tuesday. But that was actually not as bad as had been feared.
The company also announced it would close three more stores, and that it would have positive cash flow for the full fiscal year. Shares of JCPenney rose more than 11% today on the news.
JCPenney late last month fell below $1 for the first time in its history. The stock’s gain is encouraging, as the 110-year old company’s prospects for survival are dimming.
The partial shutdown of the US government is slowing the completion of CVS’ acquisition of health insurer Aetna.
In a court filing, the US Department of Justice said the “lapse in appropriations” is preventing the government’s antitrust lawyers from responding to public comments on the consent agreement.
“Once funding is restored, the Antitrust Division will resume its work and respond to public comments as promptly as possible,” the department said.
Shares of CVS (CVS) are down nearly 4%.
The two companies announced the $69 billion deal in December 2017. It’s the largest health insurance deal in history.
Apple supplier Skyworks Solutions (SWKS) warned investors that its first quarter sales would be lower than expected – but the stock is up because the warning wasn’t as bad as some had feared. ¯\_(ツ)_/¯
Skyworks CEO Liam Griffin cited “weakness across our largest smartphone customers,” which includes Apple.
Still, the less-bad-than-expected news sent other Apple suppliers up today, including Corning (GLW), Universal Display (OLED) and Qorvo. Apple (AAPL) itself is up 1.5%.
The dial on CNN Business’ Fear & Greed index is moving in a positive direction, our Paul R. La Monica notes:
Here’s what markets are doing at the open:
Oil prices also remain hot, with US crude soaring nearly 3% to $51.25 a barrel. Brent crude also climbed back above $60 a barrel.
Constellation Brands (STZ) plunged 10% after downgrading its outlook.
Apple CEO Tim Cook got a 22% pay raise last year. He took in $15.7 million, including a $3 million salary and $12 million cash bonus. Also …
Cook also received $605,063 for security expenses, including $294,082 in reimbursements for his personal air travel. Cook made a total of $12.8 million in 2017.
He and all other executives at Apple (AAPL) received their full bonuses and compensation last fiscal year, which ended in September. At that point, Apple’s stock had reached an all-time high and its market valuation soared to nearly $1.2 trillion – a record for an American company.
But since then Apple’s stock has lost a third of its value as investors worry about slumping demand for iPhones and the slowdown of the Chinese economy.
Cook is the lowest-paid of Apple’s top executives. Chief Financial Officer Luca Maestri, General Counsel Kate Adams, Apple Store chief Angel Ahrendts and Chief Operating Officer Jeff Williams all made more than $26.5 million. Unlike other executives, Cook chose not to accept Apple’s restricted stock units.
Constellation Brands stock plummeted roughly 12% before the market opened after it lowered its outlook for 2019.
The Corona-maker’s beer sales last quarter were strong, but wine and spirits sales lagged. Overall, Constellation’s sales grew 9% in the three months ending in November 2018. But profits fell 38% in that period because of high freight costs, among other factors.
The company said it expects wine and spirit sales to fall this year.
Constellation (STZ) also cited additional expenses tied to a major cannabis investment it made in the fall. The company completed its $4 billion investment in the Canadian cannabis company Canopy Growth in November.
When Constellation announced that it was increasing its stake last summer, its CEO called the pot industry “potentially one of the most significant global growth opportunities for the next decade.”
Lennar, the nation’s second largest home builder, said sales are slowing because of higher home prices and rising mortgage rates.
The company said in its fourth-quarter earnings report that it experienced weaker-than-expected sales. Shares are flat in premarket trading.
Here’s more from CNN Business’ Paul R. La Monica:
The US risks losing its AAA credit rating if the government shutdown drags on long enough, an executive with Fitch Ratings warned today.
Sound familiar? This happened in 2011. Back then, a standoff over raising the debt ceiling led Standard & Poor’s to take the unprecedented step of downgrading America’s AAA credit rating.
Flash forward to today. The debt limit will go back into effect in March, but the Treasury Department will be able to buy time by using extraordinary measures for a few months.
Fitch said in a report last Friday that “evidence of greater dysfunction” could pressure the US credit rating, especially given the rising federal deficit and slowing economic growth.
2:30 pm ET Update: Our colleague Alison Kosik received this statement from William Foster, VP and senior credit officer at Moody’s Investor Service:
US futures are pointing higher, suggesting that Wall Street could be headed for another day of gains.
Investors are hopeful that US-China trade talks, which just concluded in Beijing, may bring good news about a deal.
The decision to extend negotiations for a third day had been interpreted as a sign that things are moving in a positive direction.
On Tuesday, the Nasdaq and Dow extended winning streaks by posting gains of 1.1%. The S&P 500 added 1%.
Wednesday was the first day some investors were able to unload shares from Xiaomi after its market debut in July.
The result wasn’t pretty: Shares dropped 7% in Hong Kong to a record low. The Chinese smartphone maker is now trading 40% below its IPO price.
CEO Lei Jun, among other shareholders, responded to the sell-off by promising not to sell any shares for at least another year.
The decision was made to express “confidence in the long term value of the company,” they said in a statement.
