US stocks are heading for a fifth daily gain Monday, March 7, 2016, as energy companies jumped along with the price of crude oil and natural gas.
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The Dow Jones Industrial Average fell 77 points, or 0.5%, to 16,004 at the open. The Nasdaq composite gave up 36 points, or 0.8%, to 4,671.
The benchmark price for iron ore, a key steelmaking ingredient, rallied to a nine-month high after Chinese leaders said they would prioritize economic growth over restructuring this year, signaling the potential for more stimulus.
Stocks fell broadly on Tuesday as investors around the world fled risky bets on worrisome trade data out of China and a slump in the price of crude oil. These oil producers are expected to hold another meeting this month to discuss the details of a production freeze, with the possibility of including more oil producing countries into their agreement.
Murphy Oil plunged 15 percent and oil rig operator Transocean lost 10 percent.
The S&P 500 index showed 27 new 52-week highs and one new low, while the Nasdaq recorded 37 new highs and 34 new lows. A weaker dollar weighed on Japanese stocks following the release of revised data showing Japan’s economy contracted in October-December.
The Dow stayed above 17,000 on Monday, after breaching the psychologically important level on Friday, while the S&P 500 hovered near the 2,000 mark. The Hang Seng fell less than 0.1% today while the Nikkei dropped 0.8% and the Shanghai Composite declined 1.3%.
The CBOE Volatility Index (VIX) (^VIX), widely considered the best gauge of fear in the market, traded above 18.
Traders were also discouraged by weak trade figures from China.
The Bank for International Settlements on Sunday warned that central banks are running out of policy options (http://www.marketwatch.com/story/bank-for-international-settlements-says-negative-rates-could-have-consequences-2016-03-07) and of the “unintended consequences” of negative interest rates.
Friday’s strong United States jobs report further calmed concerns, helping to push up the yield on the 10-year Treasury note to 1.902 per cent from 1.883 per cent Friday.
CURRENCIES: The euro was little changed at $1.1026, up from $1.1013. The yen was at 112.70 yen against the greenback.
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