The Dow Jones Industrial Average climbed more than 200 points in early trading, led by big earnings-driven gains for 3M Co. and Procter & Gamble Co.as well as a rebound in oil prices after an early selloff. The S&P 500 opened 8 points, or 0.5%, higher at 1,885. The Dow Jones Industrial Average gained 270.47 points, or 1.7 percent, to 16,155.69.
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The S&P 500 is down 3.27 points, or 0.2 percent.
“The macroeconomic reality is catching up to equity valuations, and you’re seeing folks say, ‘I’m going to take my winnings and get out of the way for a while, ‘” said Jeff Buetow, chief investment officer at Innealta Capital in Austin, Texas.
The S&P 500 has declined 23.95 points, 1.3 per cent.
Boeing gave 2016 guidance that fell well short of Wall Street expectations, overshadowing the company’s stronger- than-expected earnings.
Oil’s rally today was sparked by comments from Iraq’s oil minister on Tuesday saying that he could see room for negotiations between OPEC and non-OPEC oil producers about tackling the market oversupply that is now putting negative pressure on crude prices.
The Nasdaq is down 439.74 points, or 8.8 per cent.
While the U.S. Federal Reserve is not expected to move on interest rates at its two-day meeting, which began on Tuesday, investors will parse the Fed’s commentary to gauge how recent global turmoil affects the likelihood of future rate hikes.
Shares of Dynegy and NRG Energy slumped 11.5 percent and 9.6 percent, respectively, after the U.S. Supreme Court upheld a major Obama administration electricity markets regulation.
The S&P 500 index showed three new 52-week highs and seven new lows, while the Nasdaq recorded five new highs and 60 lows.
Dow member United Technologies gained 1.8 per cent as earnings per share beat analyst forecasts even as fourth quarter sales of US$14.3 billion (S$20 billion) missed expectations.
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FirstMerit soared 18.4 per cent on news it will be acquired by Huntington Bancshares for US$3.4 billion in a deal that unites two banks in the midwestern state of Ohio. The specialty glassmaker’s fourth-quarter profit and sales beat estimates, while the company said it expects the first quarter will be 2016’s weakest with growth recovering as the year progresses.
