Wall Street recovered losses and traded stronger on Tuesday, bolstered by industrial stocks and getting some technical support as investors tried to overlook the latest provocation from North Korea that initially sent equities spiraling lower.
The benchmarks bounced up after falling below their 100-day moving averages during the session. The gains on the S&P 500 were also led by information technology and consumer staples, while materials and financials were in the red. The S&P, Dow Jones Industrial Average and Nasdaq Composite haven’t closed below the 100-day price trend indicators since November last year.
Still, U.S. markets initially took their cues from counterparts overseas, selling off in the pre-market and early in the regular session after North Korea fired a missile into the sea over northern Japan. Haven investments including gold and US Treasuries climbed.
President Donald Trump’s comments that “all options are on the table” with regard to the reclusive Asian nation bolstered defense stocks, and Boeing (BA) was one of the top performers on the Dow. Raytheon (RTN) and General Dynamics (GD) also rose.
But Trump was focused more on Texas and the impacts of Tropical Storm Harvey, as he visited the state and rain continued to fall. Gasoline prices climbed again as refinery outages from flooding continued to hinder the industry. Marathon Petroleum (MPC) fell 2.1% and LyondellBasell Industries (LYB) lost 0.8%.
In economic data, the August Consumer Confidence Index rose to 122.9 from a revised 120, beating estimates for 120.6. The June Case Shiller Home Price Index was up 0.1%, missing estimates for 0.3%. Wednesday’s calendar offers the weekly Mortgage Bankers’ Association applications index, August ADP private payrolls, and preliminary Q2 gross domestic product.