Markets Bounce Back from Early Weakness; Commodities Also Advance

A 5% collapse in Chinese markets and a bumpy open couldn’t keep U.S. markets down for long; before lunchtime, the major indices had recovered and bounced back into the black. At the closing bell, the Dow Jones Industrial Average (DJIA – 9,279) tacked on 62 points, the S&P 500 Index (SPX – 996.56) rose 6.89 points, and the Nasdaq Composite (COMP – 1,969) climbed 13.32 points. All three indices gained about two-thirds of one percent on the day. Advancers led decliners by a margin of 57 to 40 on the NYSE and 57 to 38 on the NASDAQ.

Commodities moved higher as well, with oil climbing above $71 a barrel. This morning, the Energy Department reported that crude supplies declined by 8.4 million barrels last week, flying in the face of the 1.1 million build expected by analysts. Gold headed higher as well to rise along with stocks.

Deere & Co. (DE) was active today after reporting third-quarter profit of 99 cents per share, easily topping analysts’ consensus view of 56 cents. The rub? The company’s full-year forecast implied a lackluster fourth quarter. The shares lost nearly 3% in today’s trading. Elsewhere, Merck & Co. (MRK) gained 2.5% after a judge upheld the company’s patent on asthma medication Singulair. Teva Pharmaceutical (TEVA) had been seeking the rights to make a generic version of the drug. TEVA still managed a 1.3% move higher in Wednesday’s trading.

Gap (GPS) is on the earnings calendar for tomorrow afternoon, along with Aeropostale (ARO) and Intuit (INTU). Before the open, we’ll hear from HJ Heinz (HNZ), Sears Holdings (SHLD), and Children’s Place (PLCE), to name a few. Initial jobless claims are due at 8:30 ET and leading indicators for July will hit the Street at 10:00, along with the Philadelphia Fed Index.