Wall Street closed lower on Wednesday, albeit in low volume trading, as a 2 percent drop in oil prices pulled its major indexes away from record levels.
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A report showing a bigger-than-expected increase in US oil stockpiles last week weighed on the price of crude, reversing an early gain.
HAPPY RETAILERS: Nordtsrom surged 7.8 percent a day after the department store chain reported earnings that beat Wall Street’s expectations. The Dow and the S&P 500 have hit highs together many times since then, mostly in 2013 and 2014. Health care and industrial companies were among the biggest decliners, while utilities and energy stocks led the gainers.
MARKETS OVERSEAS: In Europe, Germany’s DAX was up 0.9 percent, while France’s CAC 40 was up 1.2 percent.
The rally was broad-based, but gains were particularly strong for energy shares.
Oil prices also climbed as Saudi Energy Minister Khalid al-Falih said OPEC members and nonmembers would discuss the market situation, including any action that may be required to stabilise prices, during an informal meeting on September 26-28 in Algeria, Reuters reported.
Oil prices rose today, though crude futures pared gains after a report from Baker Hughes revealed a seventh straight weekly increase in USA rig counts.
The Nasdaq Composite was up 25.26 points, or 0.49 percent, at 5,229.85. Still, analysts predict a 2.7 percent earnings decline for index members, and forecasts for the current quarter ending in September have turned negative, indicating a sixth consecutive period of falling profits, the longest since the financial crisis.
The CBOE Volatility Index (VIX – 11.55) closed below 12 for the fourth time this week, losing 0.1 point, or 1.1%.
The S&P 500, an index of 500 blue chip United States companies, climbed 0.5 per cent to close at 2185 for the first time on Thursday. Brent crude, used to price worldwide oils, gained $1.99, or 4.3 percent, to close at $46.04 in London.
J.C. Penney said a pickup in sales helped trim the chain’s second-quarter loss from a year earlier.
The number of Americans filing applications for unemployment benefits was little changed last week, holding near four-decade lows that highlight a more robust labor market. Kimco Realty slid 33 cents, or 1.1 percent, to $30.74. Britain’s FTSE was down 0.1 percent.
CHINA CHURN: A Chinese official sought to reassure companies and investors that the growth in the world’s second-largest economy is stable after the government reported retail sales rose 10.2 percent in July from a year earlier, down from June’s 10.6 percent growth.
ENERGY FUTURES: In other energy trading, wholesale gasoline added 6 cents to $1.36 a gallon, while heating oil rose 6 cents to $1.38 a gallon. Bond prices are rising and the yield on the 10-year Treasury note fell to 1.50 percent.
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In currency markets, the dollar weakened to 101.27 yen from 101.93 on Thursday. On the Nasdaq, 1,861 issues rose and 858 fell. Macy’s stock rose $5.81, or 17.09 per cent, to US$39.81, even though it announced it would close 100 stores next year.
