Wall St. Boosted By Energy And Earnings News
US markets were rising sharply Tuesday morning as higher oil prices and some positive earnings news helped to bolster the sagging indices.
By Paolo Palazzi-Xirinachs
Tuesday, January 26, 2016 - 00:00
Consumer stocks got a lift from strong fourth-quarter results from companies like Procter & Gamble and the handbag maker Coach. Bank stocks also rose. Near midday EST, the Dow Jones industrial average rose 1.7% and the S&P 500 gained 1.3%. The Nasdaq composite index rose 1%.
Investors are still reeling from a turbulent start to 2016, which saw Wall Street post its worst-ever start to a year and a two-day recovery late last week that was largely wiped out on Monday. "I think the market is just oversold on a near-term basis," said Jeffrey Saut, chief investment strategist at Raymond James Financial, to Reuters. "We're getting a rally here and it's not because of any particular event," he said, adding that traders were likely taking up positions ahead of Apple's earnings report. Shares of Apple (AAPL.O), which is scheduled to report results after the close, were nearly flat. The iPhone maker's comments on its China business will be in sharp focus, amid broader concerns of a slowdown in demand.
Energy stocks made early gains as the price of United States crude oil rose 75 cents to $31.09 a barrel in New York. It had fallen almost 6% on Monday. Brent crude, a benchmark for international oils, gained 92 cents to $31.42 a barrel in London. Also, Exxon Mobil shares picked up 2.1%, and shares of Chevron rose 3.3%.
Consumer confidence improved in January to a three-month high as Americans grew more upbeat about the prospects for the economy, labor market and their incomes. The Conference Board’s index of sentiment advanced to 98.1 in January from a revised 96.3 a month earlier, the New York-based private research group said today.
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