“The biggest risk to the market at the moment is a huge drop in oil prices”, James Woods, a strategist at Rivkin Securities in Sydney, said by phone. Investors welcomed the latest quarterly results from several big department store chains and other companies.
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At 9.37 am ET (9.37 pm Singapore time), the Dow Jones Industrial Average was up 78.11 points, or 0.42 per cent, at 18,573.77.
After more than a year without setting fresh records, the US benchmark S&P 500 stock index consistently has been reaching new peaks after breaking to an all-time high a month ago.
The Nasdaq Composite .IXIC added 0.54 percent to 5,232.70.
Energy companies led USA stocks slightly lower in afternoon trading Wednesday, following another slide in crude oil prices.
North American stock markets are rallying this morning amid signs of strength in the USA economy. Traders are looking ahead to Friday, when the government delivers its latest monthly retail sales figures.
OIL: A bigger-than-expected increase in USA oil stockpiles last week weighed on the price of crude, reversing an early gain.
Crude oil prices tipped lower, erasing earlier gains, after weekly inventories showed an unexpected increase.
Oil prices rebounded with the September crude contract jumping $1.36 at US$43.07 per barrel, while the Canadian dollar gained 0.26 of a USA cent to 76.81 cents US. Brent crude, used to price worldwide oils, was down 81 cents, or 1.8 percent, at $44.18 per barrel in London.
Several companies reported disappointing quarterly results or outlooks on Wednesday.
SHAKEN: Hamburger chain Shake Shack slumped 7.1 percent after it said sales at older locations slowed down in the latest quarter. The stock fell $1.40 to $48.71.
DOSE OF TROUBLE: Perrigo sank 10.5 percent after the pharmaceuticals company cut its guidance for the year, citing growing competition and falling prescription drug prices. The stock lost $9.99 to $85.10.
The International Energy Agency expects global demand for oil to grow less than previously expected next year due to a weaker economy. The stock lost $4.39 to $10.39. The rally was broad-based, but gains were particularly strong for energy shares. The stock added $4.72 to $37.36.
Oil prices jumped 5 percent on comments from the Saudi oil minister about possible action to stabilize prices and the International Energy Agency’s forecast that crude markets would rebalance in the next few months.
“The earnings beats that we’re getting are, to a large extent, being driven by better revenue performance”, Lefkowitz said.
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MARKETS OVERSEAS: In Europe, Germany’s DAX was up 0.9 percent, while France’s CAC 40 was up 1.2 percent. Britain’s FTSE 100 rose 0.7 percent. That composite is down 0.4% on the day. South Korea’s KOSPI slid 0.3 percent to 2,038.72 following the South Korean central bank’s decision to keep monetary policy rate unchanged. General Growth Properties fell 89 cents, or 2.9 percent, to $29.83, while Simon Property Group shed $4.01, or 1.8 percent, at $214.97. Silver added 32 cents, or 1.6 percent, to $20.17 an ounce. Copper gained 2 cents, or 0.9 percent, to $2.19 a pound.
