Stocks opened higher Wednesday, but gains quickly narrowed as an early rebound attempt among tech stocks weakened.
The Dow Jones industrial average powered up 0.5% with CAterpillarCAT, Walt DisneyDIS and JPMorganJPM leading the advance. Th S&P 500 grabbed a 0.4% gain and the Nasdaq composite fought to hold its 0.2% advance.
Cat Climbs, Expedia Gets Upgrade, FANG Stocks Fade
The Dow industrials were almost unanimously positive, led by Caterpillar’s 2% advance that followed news of some restructuring in its executive offices.
Apple climbed 0.4% as buyers moved in on some beaten down tech-sector stocks. Apple is in the seventh week of a consolidation below a May 15 high.
The FANG stocks opened higher but quickly trimmed their opening gains. Netflix (NFLX) remained up 0.2% and Facebook (FB) showed a 0.3% gain. Netflix and Amazon (AMZN) are testing support at their 10-week moving averages, while Alphabet (GOOGL) and Netflix ended Tuesday below their 10-week lines.
Spectranetics (SPNC) spiked 26% on news that Dutch health-tech giant Philips would acquire the company for $2.15 billion. Spectranetics makes devices used in minimally invasive laser surgery. Shares ended Tuesday in buy range, above a 30.25 buy point in a six-week cup base.
Custom meal delivery service Blue Apron (APRN) slashed its expected IPO price to between 10 and 11 a share, down from earlier estimates of 15 to 17. The reduction trimmed the upper end of the company’s expected take from its 30-million-share offering to around $330 million, vs. the prior ceiling near $510 million. The shares were not yet trading early Wednesday.
Oil Dips, Trade Gap Narrows; Pending Home Sales On Deck
In oil prices, West Texas Intermediate dipped 0.2%, holding just above $44 a barrel ahead of the Energy Information Administration’s weekly inventories report, due at at 10:30 a.m. ET.
The U.S. trade gap narrowed in May to $65.9 billion, the Commerce Department estimated, down from a $67.1 deficit in April. Economist consensus had projected a smaller decrease, to $66 billion.
Pending home sales numbers for May are expected from the National Association of Realtors at 10 a.m. ET.
Global investors had an eye on an expanding ransomware cyberattack making its way from Europe to the U.S. and South America. Bloomberg reported the Petya virus that disabled computers at more than 80 companies in Russia and Ukraine on Tuesday and demanded users pay $300 million in cryptocurrency had spread Wednesday to more than 2,000 users. They included port operations in New York, Rotterdam and Argentina, and government systems in Kiev.
The wave of tech-stock selling that hit U.S. markets Tuesday washed across Asia overnight, driving markets in Tokyo, Hong Kong and Shanghai to sharp losses. Europe’s markets were down in afternoon trade, with Frankfurt’s DAX down 0.2% and the CAC-40 in Paris off a fraction, while London’s FTSE 100 slipped 0.4%.