U.S. stocks inched higher Wednesday, as a rebound in commodity prices gave investors a respite from gloomy data pointing to decelerating growth in China and tepid improvement in the eurozone’s manufacturing sector.
The S&P 500 SPX, -0.13% advanced 6 points, or 0.3%, to 1,942, with seven of its 10 main sectors trading higher. Health-care and energy stocks led gains. The Dow Jones Industrial Average DJIA, -0.39% added 11 points to 16,342. The Nasdaq Composite COMP, +0.08% was up 23 point, or 0.5%, to 4,780.
“The S&P 500 has been moving in lockstep with crude oil prices over the past few weeks, said Arthur Hogan, chief market Strategist at Wunderlich Securities, suggesting fear and sentiment are driving markets right now.
“Investors want to know when China’s data stop deteriorating and start improving,” Hogan said.
The latest Chinese factory gauge underscored concerns about slowing growth in the world’s second-largest economy. The preliminary Caixin China Manufacturing Purchasing Managers’ Index fell to the lowest level since the financial crisis and missed analyst forecasts. Stocks ended mostly lower in Asia after the numbers, with the Shanghai Composite Index SHCOMP, -2.19% down 2.2%.
Economic data from Europe missed expectations but pointed to a slow recovery. Meanwhile European Central Bank’s President Mario Draghi said macroeconomic conditions weakened over the summer. European stock markets SXXP, +0.62% pared some of the gains but were still higher.
“Everything seem to be locked in a delicate balance of buyers and sellers, even more than usual. And every dip has been furiously bought, but every rally has been sold. You really get the sense that both sides are locked in a stalemate,” Chris Beauchamp, senior market analyst at IG.
U.S. stock markets ended Tuesday firmly lower as a slump in commodity prices reignited fears about slowing global growth. Commodity prices bounced back on Wednesday, with crude oil CLX5, +0.28% jumping closer to $47 a barrel, while metals rose almost across the board.
The ICE dollar index DXY, +0.11% traded slightly lower on Wednesday.
Data: U.S. manufacturers matched the slowest pace of growth in September in 22 months, according to the “flash” or preliminary reading from the Markit research firm.
Atlanta Federal Reserve President Dennis Lockhart will give a speech to the Columbus Rotary Club in Columbus, Ga., at 12:30 p.m. Eastern. Lockhart is a voting member of the Federal Open Market Committee this year. On Monday, Lockhart indicated he was willing to consider an interest-rate increase this year.
Movers and shakers: Shares of CarMax, Inc. KMX, -1.19% fell 2.9%, after falling 4.7% on Tuesday following disappointing quarterly results, making it the top decliner on the S&P 500.
J.C. Penney Co. Inc. JCP, +0.32% promoted John Tighe to the role of chief merchant starting Oct. 1, replacing Elizabeth Sweney, who has held the job since 2012. Shares rose 1%.
MetLife Inc. MET, +1.15% shares rose 1.5% after the company late Tuesday said it would raise its stock buyback program to $1 billion, on top of $1 billion the insurer bought back in the first quarter.
