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Surge in crude oil pushes energy, other stocks higher

NEW YORK — Stocks are jumping Monday as the price of oil surges, lifting energy stocks. Mining and chemicals companies and banks are also climbing. The stock market is coming off its best week of the year.

KEEPING SCORE: The Dow Jones industrial average jumped 204 points, or 1.2 percent, to 16,595 as of 10:27 a.m. Eastern time. The Standard & Poor’s 500 index rose 26 points, or 1.3 percent, to 1,943. The Nasdaq composite advanced 60 points, or 1.3 percent, to 4,563. Last week was the best of the year for U.S. stocks.

ENERGY: Benchmark U.S. crude climbed $2.01, or 6.8 percent, to $31.65 a barrel in New York. Brent crude, which is used to price international oils, rose $1.70, or 5.1 percent, to $34.71 a barrel in London. Oil prices fell Friday after a weeklong rally.

The International Energy Agency said Monday that it doesn’t expect oil prices to recover significantly until 2017. Oil prices have dropped about 70 percent since mid-2014.

Chevron gained $2.03, or 2.3 percent, to $88.53 and Diamond Offshore Drilling rose $1.22, or 6.2 percent, to $20.84.

MATERIALS STOCKS: Chemicals and mining companies also rose. Alcoa rose 77 cents, or 9.8 percent, to $8.65 and Freeport-McMoran added 83 cents, or 12 percent, to $7.75. Dow Chemical rose 88 cents, or 1.9 percent, to $47.96.

THEY GO TOGETHER: “Stock market prices and oil prices have been tracking each other like a shadow through the first part of the year,” said Michael Scanlon, managing director and portfolio manager for John Hancock Asset Management.

Scanlon said that usually doesn’t happen for long stretches. He said the market is rising and falling with oil prices because when prices go down, investors get tend to get concerned about the health of the global economy, and when oil prices rise, they are reassured.

TIMBER: Lumber Liquidators plunged $2.88, or 20.3 percent, to $11.33 after the U.S. government said people exposed to some types of its laminate flooring were three times as likely to get cancer as it had originally predicted. The Centers for Disease Control and Prevention now says the risk of cancer is six to 30 cases per 100,000 people. It previously estimated two to nine cases per 100,000 people.

DATA CENTER DEAL: Data center operator Equinix will buy European competitor TelecityGroup for $3.3 billion. Equinix has more than 100 data centers in 15 countries, and will gain TelecityGroup’s 39 facilities in 11 European countries.

Equinix stock added $3.03, or 1 percent, to $302.40.

EAT UP: Food service company Sysco Corp. said it will buy Europe’s Brakes Group for $3.1 billion. Last year Sysco gave up on an effort to buy U.S. Foods for $3.35 billion after the Federal Trade Commission opposed the deal. Sysco gave up $2.46, or 5.5 percent, to $42.53.

HEALTHY QUARTER: Botox maker Allergan climbed after its quarterly results surpassed Wall Street projections. The stock rose $9.53, or 3.5 percent, to $285.28.

EUROPE: European stocks rose as investors hoped for more steps to stimulate the European Union economy. This week, finance ministers from the Group of 20 major rich and developing economies will meet, and they could take new steps to shore up global growth.

Germany’s DAX gained 1.9 percent and France’s CAC-40 added 1.8 percent. Britain’s FTSE 100 rose 1.8 percent.

BRITAIN: The pound fell about 2 percent as London Mayor Boris Johnson said he believes Britain should leave the European Union. Prime Minister David Cameron wants to keep the country within the 28-nation bloc, and voters will hold a referendum in June.

Analysts say the “stay” campaign is still likely to win, but the prospect of prolonged uncertainty is unnerving some investors.

The pound fell to $1.412 from $1.441 on Friday.

CURRENCY: The yield on the 10-year Treasury note held steady at 1.75 percent. The euro fell to $1.1020 from $1.1135 late Friday and the dollar rose to 113.08 yen from 112.56 yen.


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