Stocks powered higher, with the Dow jumping 175 points and the S&P regaining its 50-day moving average, helped by an upswing in crude oil prices and a rebound in the tech (+1.4%) and health care (+1.4%) sectors.
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The table below shows that, for the second week in a row, the biggest positive percentage change in sector bet-related assets invested over the past one-month and three-month periods went to energy.
Oil jumped by more than 3 percent to its highest since November 2015 on growing Nigerian output disruptions and after Goldman Sachs Group Inc. said the market had ended nearly two years of oversupply and flipped to a deficit. As the earnings season draws to a close, analysts estimate income at S&P 500 companies fell 7.4 per cent in the first quarter, compared with forecast for flat growth earlier this year.
Investors have been keeping a sharp eye on data for clues regarding the path of interest rate hikes. The S&P 500 gained 20.05 points, or 0.98 percent, to 2,066.66. Meanwhile, June West Texas Intermediate crude rose $1.51, or 3.3%, to settle at $47.72 a barrel on the New York Mercantile Exchange.
Despite a better-than-expected retail sales report, investors sold as a number of brick-and-mortar retailers delivered weak quarterly reports.
Seven of the 10 major S&P 500 sectors were higher Monday, with the energy index’s 1.24 percent rise leading the gainers.
At Friday’s close, the Dow Jones Industrial Average fell 185 points to 17,535, the S&P 500 lost 18 points at 2,047, the Nasdaq dropped 20 points to 4,718, and the Russell 2000 was off 6 points at 1,102.
Tribune Publishing soared 23 per cent as Gannett raised the all-cash offer in its hostile takeover bid. In addition to planned remarks from several Federal Reserve officials, the Fed is scheduled on Wednesday to release minutes of its last meeting. “The price of oil and other commodities seem to be catching a bid so there’s hope there will be improvement in the industrial side of the economy”.
The stock bounced Monday following news that Warren Buffett’s Berkshire Hathaway (NYSE: BRK -B) bought over $1 billion worth of shares, but further selling would carry a negative implication for the overall market.
Anacor Pharmaceuticals jumped 54.5 per cent to $US98.94 after Pfizer said it would buy the drugmaker in a deal valued at $US5.2 billion. Range Resources plunged $4.32, or 10 percent, to $37.69. Germany’s market remained closed for the Whit Monday holiday. Anacor gave one of the biggest boosts to the Nasdaq Biotechnology index, which gained 2.6 percent.
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Among currencies, the US dollar moved higher in the previous week. Prices have continued to climb since then, closing as high as $46.65 on Thursday.
