U.S. stocks are up across the board this morning as a slight recovery in crude oil prices has led to a year-end surge in energy stocks.
By Paolo Palazzi-Xirinachs
Tuesday, December 29, 2015
Crude prices have edged up as colder weather has finally settled in Europe and North America, raising hopes of a short-term uptick in the tepid demand that has plagued the commodity this year – at least partially exacerbated by what scientists are calling the warmest year on record.
These gains have led to advancing issues outpacing declining issues this morning on the NYSE by 4.4 to 1. Large and small-cap stocks are also both strong, while the S&P 500 index is up 0.89%. Among individual stocks, the top percentage gainers this morning in the S&P 500 are CONSOL Energy Inc. and Kohl's Corporation.
The global oil glut and China’s economic weakness are dually fanning the biggest annual drop in commodity prices in seven years, according to a Bloomberg gauge of raw materials. That’s undermining corporate earnings and hindering central bank attempts to ignite inflation. Global equities are on track for the worst year since 2011, while the S&P 500 is flat for the year.
In other economic news, annualized U.S. single-family home prices rose in October at a slightly faster pace than in September and above market expectations, according to the S&P/Case Shiller composite index of 20 metropolitan areas released today, showing it gained 5.5% in October on a year-over-year basis compared with 5.4% in the year to September. It was just above the 5.4% estimate from a Reuters’ sponsored poll of economists.
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