Investing.com -- U.S. stocks inched up on Wednesday, reversing sharp losses from earlier in the session, as investors reacted to a rally in crude futures and modest changes in the Federal Reserve's latest Beige Book update.
In an updated version of the Beige Book, the Fed said economic growth has been modest since its last release in mid-April, amid a tight labor market as wages continue to pick up. In addition, real estate and manufacturing conditions improved in a number of districts throughout the book, while consumer spending continued to lag. Also on Tuesday, the Institute for Supply Management (ISM) said that its Manufacturing Index for May ticked up 0.5 to 51.3, considerably above consensus forecasts of 50.6. Last week, Fed chair Janet Yellen said it could be appropriate for the U.S. central bank to raise interest rates in the coming months if the economy and labor market continues to remain strong.
The Dow Jones Industrial Average added 2.47 or 0.01% to 17,789.67, while the NASDAQ Composite index gained 4.19 or 0.08% to 4,952.25, both using a late rally to turn positive on Wednesday afternoon. At session-lows, the Dow fell as much as 122 points. The S&P 500 Composite index, meanwhile, rose by 2.37 or 0.11% to 2,099.33, as eight of 10 sectors closed in the green. Stocks in the Health Care, Consumer Goods and Basic Materials industries led, each gaining more than 0.3% on the session. Stocks in the Telecommunications and Technology sectors lagged.
The top performer on the Dow was EI du Pont de Nemours and Company (NYSE:DD), which gained 0.99 or 1.51% to 66.40. DuPont finished just ahead of JPMorgan Chase & Co (NYSE:JPM), which added 0.42 or 0.64% to 65.69. Earlier, officials from the world's largest investment bank said they expect revenue from trading operation to increase exponentially in the second quarter on an annual basis. During the first three months of the year, revenues at JPMorgan slumped 3% amid massive declines in its fixed income business.
"We said January and February were weak months, and we recovered momentum in March," said Daniel Pinto, head of JPMorgan's investment bank division. "That momentum has continued into April and May. Essentially with higher client activity in fixed income, and with slightly weaker client activity in equities, mainly derivatives."
The worst performer was Apple Inc (NASDAQ:AAPL), which fell 1.40 or 1.40% to 98.46. Apple closed just below VZ Holding AG (SIX:VZN), which lost 0.47 or 0.92% to 50.43. Shares in Verizon retreated amid heavy profit taking, following two positive sessions dating back to late last week. Last Friday, the leading wireless service provider agreed on terms of a comprehensive deal with two labor unions, halting a six-week labor strike that involved 36,000 workers.
The biggest gainer on the NASDAQ was Endo International PLC (NASDAQ:ENDP), which added 0.81 or 5.12% to 16.62 after receiving a "strong buy rating" from five top Wall Street analysts. Shares in the specialty drugmaker are still down by more than 80% over the last 52 weeks, including 71% over the last three months. The worst performer was Yahoo! Inc (NASDAQ:YHOO), which lost 1.29 or 3.40% to 36.65.
The top performer on the S&P 500 was Michael Kors Holdings Limited (NYSE:KORS), which gained 2.83 or 6.62% to 45.55, after the London-based luxury goods maker topped analysts' earnings forecast over the first quarter. It came as Michael Kors' saw its revenue surged nearly 8%, amid an uptick in handbag and accessories sales. The worst performer was FCX, which lost 0.48 or 4.33% to 10.60. Shares in Freeport-McMoran Copper & Gold Inc (NYSE:FCX) fell considerably as gold futures retreated back toward near three-month lows. Since hitting 15-month highs in early-May at $1,300 an ounce, gold has slid approximately 6%.
On the New York Stock Exchange, advancing issues outnumbered declining ones by a 1,997-1,031 margin.