Stocks are rising Wednesday afternoon as stocks break out of a two-day slump. Energy companies are jumping as the price of oil rises 5 percent. Health care companies are also trading higher, led by drugmakers. The market is coming off its worst day in about a month.
KEEPING SCORE: The Dow Jones industrial average gained 53 points, or 0.3 percent, to 17,656 as of 3 p.m. Eastern time. The Standard & Poor’s 500 index rose 15 points, or 0.7 percent, to 2,059. The Nasdaq composite index picked up 54 points, or 1.1 percent, to 4,898.
ENERGY: Energy companies gained ground as benchmark U.S. crude rose $1.86, or 5.2 percent, to close at $37.75 a barrel in New York. Brent crude, a benchmark for international oils, added $1.97, or 5.2 percent, to close at $39.84 a barrel in London. The price of oil has skidded in recent days before making small gains Tuesday. The price of heating oil climbed 6.6 cents, or 6.1 percent, to $1.14 a gallon.
Chevron advanced $1.68, or 1.8 percent, to $94.35 and Hess rose $2.71, or 5.3 percent, to $53.97. Exxon Mobil picked up 86 cents, or 1 percent, to $83.07.
UNDONE DEAL: Oilfield services companies Halliburton and Baker Hughes traded higher after the U.S. government sued to block them from combining. Halliburton had agreed to buy its rival for more than $34 billion in November 2014, after oil prices began to fall. Baker Hughes gained $3.11, or 7.9 percent, to $42.47. Halliburton climbed $2.23, or 6.5 percent, to $36.63.
ANOTHER BREAKUP: Health care stocks also surged. Pfizer and Allergan both rose after they called off their merger after the Treasury Department introduced new tax rules that made the deal far less appealing. Pfizer, which agreed to pay $160 billion for the Botox maker, added $1.35, or 4.3 percent, to $32.71. Allergan, which dropped 15 percent on Tuesday, regained $7.74, or 3.3 percent, to $244.29.
Biotechnology companies also rose. Cancer drug maker Celgene gained $5.25, or 5.1 percent, to $107.37 and Vertex Pharmaceuticals climbed $6.32, or 7.5 percent, to $90.48.
STELLAR: Constellation Brands rose $7.76, or 5.1 percent, to $159.12. The owner of Corona, Negra Modelo and Pacifico beers reported solid quarterly results and raised its profit forecasts for the year.
DIM THE LIGHTS: Lighting maker Cree said its sales will fall far short of expectations because of new product delays and software problems. The company said it may take a loss in the third quarter. Its stock lost $4.51, or 15.5 percent, to $24.54.
PAY UP: Electronic payment processing company Global Payments gained $6.09, or 9.3 percent, to $71.24 after it posted strong quarterly results.
HOG TIED: Harley-Davidson took the biggest loss on the S&P 500, as it gave up $3.36, or 6.7 percent, to $46.49. Analyst John Tomlinson of ITG Investment Research said he thinks the motorcycle company lost market share over the first three months of this year, and said he thinks its retail sales in the U.S. will drop in the first quarter.
GLASS GAINS: Owens-Illinois stock rose 74 cents, or 4.8 percent, to $16.20. Citi Investment Research analyst Anthony Pettinari upgraded the glass maker’s stock, saying he thinks the company’s profits will start growing again.
DIVIDEND DROP: Telecom stocks fell after AT&T and Verizon, the largest publicly traded companies in the industry, prepared to pay billions of dollars in quarterly dividends.
METALS: Gold fell $5.80 to $1,223.80 an ounce. Silver declined six cents to $15.05 an ounce. Copper inched up less than one cent to $2.14 a pound.
OVERSEAS: Britain’s FTSE 100 rose 1.2 percent and the CAC 40 in France gained 0.8 percent. Germany’s DAX rose 0.6 percent. Japan’s Nikkei 225 closed 0.1 percent lower and the Hang Seng index in Hong Kong rose 0.2 percent. South Korea’s KOSPI rose 0.4 percent.
BONDS, CURRENCIES: Bond prices fell. The yield on the 10-year U.S. Treasury note rose to 1.75 percent from 1.72 percent. The U.S. dollar dipped to 109.69 yen from 110.49 yen. The euro rose to $1.1419 from $1.1385.
BEFORE YOU GO…
… we’d like to ask for your support. More people are reading the Mississippi Business Journal than ever before, but advertising revenues for all conventional media are falling fast. Unlike many, we do not use a pay wall, because we want to continue providing Mississippi’s most comprehensive business news each and every day. But that takes time, money and hard work. We do it because it is important to us … and equally important to you, if you value the flow of trustworthy news and information which have always kept America strong and free for more than 200 years.
If those who read our content will help fund it, we can continue to bring you the very best in news and information. Please consider joining us as a valued member, or if you prefer, make a one-time contribution.Click for more info