Oil firms after data; Brexit, Fed give dollar support

Wed Mar 29, 2017 5:04pm EDT
 
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By Rodrigo Campos

NEW YORK (Reuters) - Stocks rose slightly on Wall Street on Wednesday and a global equities index ticked lower, while crude futures hit a nine-day high after a smaller-than-expected build in U.S. inventories.

The U.S. dollar rose with support from remarks by various Federal Reserve officials. Chicago Fed President Charles Evans said he favors further interest rate hikes this year, while Boston Fed President Eric Rosengren said the Fed should raise rates three more times in 2017.

Weighing on the euro and pound, Prime Minister Theresa May formally began Britain's divorce from the European Union, a decision pitching her country into the unknown.

On Tuesday, the Scottish Parliament backed a bid to hold an independence referendum that could break up the UK, adding another layer of uncertainty for investors.

Gains in the energy sector .SPNY, up 1.22 percent, kept the S&P 500 afloat, while the Dow fell for the ninth session of the last 10. Traders continue to assess the execution risk from a Trump administration that failed to pass its first major piece of legislation despite holding majorities in both chambers of Congress.

"The policy risk has increased ... but economic data still remains solid and therefore earnings should be good," said Walter Todd, chief investment officer of Greenwood Capital in Greenwood, South Carolina. "Absent some revelation on the policy front, I think (earnings are) the next catalyst for the market."

The Dow Jones Industrial Average .DJI fell 42.18 points, or 0.2 percent, to close at 20,659.32, the S&P 500 .SPX gained 2.56 points, or 0.11 percent, to 2,361.13 and the Nasdaq Composite .IXIC added 22.41 points, or 0.38 percent, to 5,897.55.

It was among the lightest trading volume days on Wall Street so far this year.   Continued...

 
An employee pumps petrol into a car at a petrol station in Hanoi, Vietnam December 20, 2106. REUTERS/Kham