Oil and gas companies got a boost from rising oil prices. Banks and health care companies were also pulling the market lower, while consumer-focused stocks and telecom sector companies moved higher. Markets in Southeast Asia were mostly higher.
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The rally was broad-based, but gains were particularly strong for energy shares.
The Dow Jones industrial average declined 0.2 per cent to finish at 18,495.66 points and the S&P 500 lost 0.29 per cent, to 2175.49 points. The S&P 500 index added 0.5 percent to 2,185.79, up 0.13 percent the high it set on Friday.
The Nasdaq Composite was up 25.26 points, or 0.49 per cent, at 5,229.85. Moreover, investors digested a number of earnings results from companies including Perrigo, JD.com and Disney.
A strong jobs report last Friday boosted investors’ confidence in the USA economy. The retailers’ earnings fueled optimism for the US government’s latest monthly tally of retail sales Friday.
In corporate news, Nvidia Corp rallied in pre-market trade after the graphics chip maker reported better-than-expected results late on Thursday.
Crude oil gained 3.6 percent to $43.20 a barrel in NY. Brent crude, used to price worldwide oils, added 93 cents, or 2 percent, to close at $46.97 a barrel in London. Brent crude, used to price global oils, slid 93 cents, or 2.1%, to close at 44.05 dollars per barrel in London. He has been telling clients these companies need several more quarters of good news to show they have made sustainable improvements. The contract fell 25 cents on Tuesday, ending a rally after the USA government raised the forecast on domestic crude production. Materials stocks also rose 0.4% thanks to solid gains at chemical and mining companies. The stock lost 48 cents to $3.25.
SCORCHED: Traders sought shade from SunPower after the solar products and service company tumbled 29.9 percent. The company said its power plant business is struggling amid growing competition and project delays. The stock added 38 cents, or 3.8 percent, to $10.32.
The U.S. Energy Information Administration (EIA) reported an increase in crude inventories. Devon Energy added 4.4%, while Chesapeake Energy rose 4.8%. Transocean slid the most among stocks in the S&P 500, shedding 42 cents, or 4.1 percent, to $9.95. Stocks were still poised to post gains for the week though.
“Given the dearth of alternative investment, USA stocks look relatively better”, Faucher said. The energy sector advanced 1.3% on the news, including a 4.8% jump in Chesapeake Energy Corporation (NYSE:CHK), which announced it would pay almost $340 million to exit the Barnett Shale in Texas. Silver futures lost a little less than 1 percent to $19.98 on the day.
The S&P energy index jumped 1.68 per cent, making it the top gainer among the 10 major sectors of the benchmark, led by gains in Exxon and Chevron. The Standard & Poor’s 500 index rose 11 points or 0.5 percent to 2,186.
The S&P 500 is up 1.18 points, or 0.1 percent.
The Nasdaq is down 16.54 points, or 0.3 percent.
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The yield on the 10-year Treasury bond rose to 1.57%. The closely watched EUR/USD pair fell 0.19 percent to 1.1139 euros. In currency markets, the dollar strengthened to 100.99 yen from 101.93 on Thursday.
