What's moving markets today
US financial markets continue to recover from a horrible December.
- The Nasdaq narrowly advanced on Wednesday, notching its eighth straight gain. That’s the longest win streak since August.
- The Dowjumped 63 points, or 0.2%. It's now less than 1,000 points from the all-time high set in early October.
- And the S&P 500 closed up 0.2% to its highest level since early December.
Markets initially fell and then quickly rebounded after the release of the minutes from the last Federal Reserve meeting
CVS Health (CVS) plunged 8%, its worst day since November 2016, after it issued disappointing guidance. New York-listed shares of UBS (UBS) fell 4% after the banks was hit with a $5.1 billion penalty from a French court.
There's a 20% to 25% chance of an economic recession in the United States over the next year, according to S&P Global Ratings.
The ratings firm raised its recession odds on Wednesday from its previous estimate of 15% to 20% in November.
"Regardless of whether a recession arrives...the growth pace of the world's largest economy will likely slow," Beth Ann Bovino, chief US economist at S&P, wrote in the report.
S&P said that four of its 10 leading indicators of near-term growth momentum "weakened" since then. And two of those signals -- the S&P 500 and the Federal Reserve's loan survey -- are outright negative.
But the good news is that while recession chances may have climbed, S&P still believes there is a very good chance the current economic expansion becomes the longest in American history. It would only have to continue until July to hit that mark.
The stock markets aren't doing much of anything. Investors are bracing for the release of minutes from the Federal Reserve's January meeting at 2 p.m. ET.
Here's where they stand:
- The Dow is flat.
- Nasdaq inched up .25%.
- S&P has drifted 5 points higher.
Garmin (GRMN) is up a whopping 16% after beating on earnings.
Devon Energy is transforming itself into a pure-play American oil producer -- and Wall Street loves it.
Shares of the Oklahoma-based company spiked 11% on Wednesday after it revealed plans to ditch assets in Canada and the gas-rich Barnett Shale.
Devon (DVN) said the makeover will make the new company a "high-return US oil growth business." It will be able to grow oil volumes at a "mid-teens" rate and generate free cash flow -- at just $46 a barrel.
Devon expects to ditch its Canadian and Barnett Shale assets by the end of 2019, via a sale or spin-off.
It's a fresh reminder of how oil companies large and small are zeroing in on the Permian Basin and other US shale oilfields to generate growth. BP's (BP) recent bets on American shale are already paying off, while ExxonMobil's (XOM) Permian Basin investments allowed the oil giant to halt a recent production slump.
US shale strength lifted Devon's fourth-quarter output above the Street's view. And Devon also felt confident enough to ramp up its buyback plan by $1 billion and boost the dividend by 13%.
Wall Street has yet to awaken from its President's Day slumber.
US markets opened little changed on Wednesday.
The quiet start comes after US stocks closed narrowly higher on Tuesday.
CVS (CVS) tumbled 8% as its earnings beat was overshadowed by cautious guidance that badly missed expectations. Southwest (LUV) fell 5% after the airline cancelled hundreds of flights due to an “operational emergency.”
Tesla (TSLA) dipped 1% after announcing the exit of its general counsel after just two months on the job. The Elon Musk-run company also disclosed plans to sell more stock to pay for the acquisition of battery maker Maxwell Technologies (MXWL).
Traders will shift their attention at 2 pm ET to the release of the minutes from the most recent Federal Reserve meeting. Wall Street is looking for more insight into what led to the Fed's abrupt reversal from hawkish to dovish.