Helped by Oil Prices, Wall Street is Up

Helped by Oil Prices, Wall Street is Up

The S&P 500 and the Dow are moving higher in late morning trading today as an unexpected rise in oil boosted the energy sector, but gains on Nasdaq have been limited as Tesla dragged down tech enthusiasm.  



oil industry
oil industry

The electric carmaker's shares have reversed premarket gains to trade down 4.5% after analysts expressed doubts about the company's ability to deliver vehicles ahead of schedule.

Oil prices have surged about 3% percent as a huge wildfire in Canada's oil sands region and escalating tensions in Libya have stoked concerns amongst investors of a near-term shortage in supply. Oil majors Exxon (XOM.N) and Chevron (CVX.N) are both up about 1%.

Investors are also keeping an eye on the jobs data for April, which is due on Friday. Economists are predicting that nonfarm payrolls likely rose by 202K after rising 215K in March, while the unemployment rate is forecast to hold at 5%.  A strengthening labor market could influence the pace of future rate hikes. Traders, however, seem to be pricing in only one increase later this year. A private sector jobs report released by ADP on Wednesday showed that private employers created only 156K jobs last month, which was significantly below economists’ estimates.

Photo: iStock

 


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