Dow Rebounds in Mixed Trading; Nasdaq Slips

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Stocks were mixed Wednesday as investors looked to claw back the previous session’s declines while tracking debt-ceiling negotiations and the rolling global power crisis.

The Dow Jones Industrial Average, which turned negative for the month after Tuesday’s 570-point slump, rose 125 points, while the S&P 500 advanced 0.27%. 

The Nasdaq Composite, which started off in the green, ticked down 0.09% at last check. 

Benchmark 10-year note yields rose slightly to 1.537% after touching a high of 1.567% Tuesday.

Senate Majority Leader Chuck Schumer said Democrats were working on a plan to avoid a government shutdown.

JPMorgan  (JPM) – Get JPMorgan Chase & Co. (JPM) Report Chief Executive Jamie Dimon said he and his colleagues were preparing for a “potentially catastrophic” failure to raise the debt ceiling this week. Senate lawmakers continue to bicker into the final hours ahead of tomorrow’s deadline.

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Boeing  (BA) – Get Boeing Company Report was leading the Dow after the aerospace giant said a 737 Max test in China last month “went off without a hitch.” The could provide authorities with enough data to return the aircraft to service in the world’s biggest aviation market.

Micron  (MU) – Get Micron Technology, Inc. (MU) Report shares fell after one of the world’s biggest memory chipmakers said supply-chain disruptions in the tech sector would hit its current-quarter sales. Analysts at JPMorgan and Mizuho last week cut their price targets on the company.

Dollar Tree  (DLTR) – Get Dollar Tree, Inc. Report surged the most in more than two years Wednesday after the discount retailer said it would begin testing the sale of higher-priced items in some of its stores and boosted its share buyback program to $2.5 billion. 

West Texas Intermediate oil futures for November delivery were off slightly to $74.98 a barrel while Brent contracts for the same month, the global pricing benchmark, were marginally lower at $78.68 per barrel.

Morgan Stanley said in a report that Brent crude at $80 a barrel would be “destructive” to demand. 

“Oil prices have disconnected from the marginal cost of supply. They are traveling to the level where demand destruction kicks in,” Morgan Stanley said.