US Markets Stay Up As Crude Soars
US markets are mostly higher on Tuesday as the price of oil has soared, sending shares of energy companies even higher. Oil prices jumped nearly 6% today on bets OPEC members will agree to cut output, while stocks edged higher, led by technology shares that had fallen recently.
By Paolo Palazzi-Xirinachs
Tuesday, November 15, 2016 - 00:00
Oil producers in the Organization of the Petroleum Exporting Countries (OPEC) are set to meet on Nov. 30 and discuss output limits, and hopes for a deal boosted prices. An outline deal was reached in September but negotiations on the details are proving difficult, officials say.
Benchmark United States crude oil gained $2.01, to $45.33 a barrel in electronic trading on the New York Mercantile Exchange. Brent crude, used to price international oils, rose $1.88, to $46.31 in London. Among energy stocks, Exxon Mobil rose 1.5% and Schlumberger gained 2.4%, while Apache added 5%.
In early afternoon trading, the Dow Jones industrial had lost as much as 0.15% but was on an upswing, and the S&P 500 index was up 0.32%. The Nasdaq composite index also gained 0.83%.
Tuesday’s trading was a partial reversal of the moves investors have made since the election of Mr. Trump to the presidency one week ago. Tech stocks have been losing ground recently, but shares of Microsoft picked up 1.9% and Nvidia stock rose 3.2%.
Bond prices rose and yields slipped. The yield on the 10-year Treasury note declined to 2.22% from 2.27%. Companies that pay large dividends, like phone companies, also reversed direction and rose. however, the bond market could struggle with Mr. Trump in the White House: If taxes are cut and government spending rises sharply, that could lead to rising deficits that would trouble investors in government debt.
Banks returned some of their recent post-election gains. JPMorgan Chase stock fell 1.2%.
In Germany, the DAX gained 0.4%, and in France, the CAC 40 rose 0.6%, while the FTSE 100 closed up 0.6% in Britain.
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