Energy, financial stocks give Wall Street modest lift US Market
The Dow Jones industrial average rose 41.23 points, or 0.23 percent, to 18,355, the S&P 500 gained 6.75 points, or 0.31 percent, to 2,163.78 and the Nasdaq Composite added 22.01 points, or 0.43 percent, to 5,159.74.
Wall Street advanced modestly on Wednesday after a sharp rise in oil prices boosted energy shares, while better-than-anticipated data on the labor market helped financial stocks. US oil prices CLc1 jumped more than 3 percent to settle at USD 40.83 a barrel after a larger-than-expected gasoline draw offset a surprise build in US crude stockpiles. WTI crude had settled below USD 40 for the first time since April on Tuesday.
The S&P energy index .SPNY was up 1.8 percent as the best performing of the 10 major S&P groups. "The focus, at least near term, is definitely on energy prices and if we can hold USD 40 (oil) the market is fine here. If it can’t hold USD 40, there is going to be more pressure on the overall market," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills,
"It’s back to worries about oil and excess supply and demand that is OK but not great." Data showed the US private sector added 179,000 jobs in July, beating estimates of 170,000. The report comes ahead of the more comprehensive national payrolls report on Friday. If the labor market is able to build on its recent strength, it could make the case for the Federal Reserve to raise benchmark US interest rates later this year. Chicago Federal Reserve Bank President Charles Evans said on Wednesday that one rate hike may be appropriate this year, despite his worry that inflation is still undershooting the US central bank's 2 percent target.
The possibility of a rate hike this year helped support financial stocks, along with a 7.3 percent jump in American International Group (AIG.N) after the largest commercial insurer in the United States and Canada reported an operating profit that beat analysts' estimate.
The S&P financial sector rose 1 percent. Healthcare shares were lower, weighed down by a 2.7 percent drop in Biogen. Reuters reported the company has not received any formal expressions of interest from potential acquirers a day after buyout reports on Tuesday sent the stock up more than 9 percent.
The Dow Jones industrial average rose 41.23 points, or 0.23 percent, to 18,355, the S&P 500 gained 6.75 points, or 0.31 percent, to 2,163.78 and the Nasdaq Composite added 22.01 points, or 0.43 percent, to 5,159.74. Advancing issues outnumbered declining ones on the NYSE by a 2.10-to-1 ratio; on Nasdaq, a 1.92-to-1 ratio favored advancers.
The S&P 500 posted 10 new 52-week highs and one new low; the Nasdaq Composite recorded 69 new highs and 35 new lows.
About 6.67 billion shares changed hands in US exchanges, compared with the 6.6 billion daily average over the last 20 sessions.
The Dow Jones industrial average rose 41.23 points, or 0.23 percent, to 18,355, the S&P 500 gained 6.75 points, or 0.31 percent, to 2,163.78 and the Nasdaq Composite added 22.01 points, or 0.43 percent, to 5,159.74.
Wall Street advanced modestly on Wednesday after a sharp rise in oil prices boosted energy shares, while better-than-anticipated data on the labor market helped financial stocks. US oil prices CLc1 jumped more than 3 percent to settle at USD 40.83 a barrel after a larger-than-expected gasoline draw offset a surprise build in US crude stockpiles. WTI crude had settled below USD 40 for the first time since April on Tuesday.
The S&P energy index .SPNY was up 1.8 percent as the best performing of the 10 major S&P groups. "The focus, at least near term, is definitely on energy prices and if we can hold USD 40 (oil) the market is fine here. If it can’t hold USD 40, there is going to be more pressure on the overall market," said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills,
"It’s back to worries about oil and excess supply and demand that is OK but not great." Data showed the US private sector added 179,000 jobs in July, beating estimates of 170,000. The report comes ahead of the more comprehensive national payrolls report on Friday. If the labor market is able to build on its recent strength, it could make the case for the Federal Reserve to raise benchmark US interest rates later this year. Chicago Federal Reserve Bank President Charles Evans said on Wednesday that one rate hike may be appropriate this year, despite his worry that inflation is still undershooting the US central bank's 2 percent target.
The possibility of a rate hike this year helped support financial stocks, along with a 7.3 percent jump in American International Group (AIG.N) after the largest commercial insurer in the United States and Canada reported an operating profit that beat analysts' estimate.
The S&P financial sector rose 1 percent. Healthcare shares were lower, weighed down by a 2.7 percent drop in Biogen. Reuters reported the company has not received any formal expressions of interest from potential acquirers a day after buyout reports on Tuesday sent the stock up more than 9 percent.
The Dow Jones industrial average rose 41.23 points, or 0.23 percent, to 18,355, the S&P 500 gained 6.75 points, or 0.31 percent, to 2,163.78 and the Nasdaq Composite added 22.01 points, or 0.43 percent, to 5,159.74. Advancing issues outnumbered declining ones on the NYSE by a 2.10-to-1 ratio; on Nasdaq, a 1.92-to-1 ratio favored advancers.
The S&P 500 posted 10 new 52-week highs and one new low; the Nasdaq Composite recorded 69 new highs and 35 new lows.
About 6.67 billion shares changed hands in US exchanges, compared with the 6.6 billion daily average over the last 20 sessions.
