MARKET SNAPSHOT: Stock Market Trades Near Records As Oil Rallies On Talk Of Output Deal
Metal prices rise after China promises to boost infrastructure spending
The Nasdaq Composite on Monday hit a fresh record intraday and the S&P 500 hovered near its all-time high, as a jump in oil prices to a two-week high lifted Wall Street sentiment.
The Nasdaq Composite Index gained 22 points, or 0.4%, to 6,141, setting a record in intraday trade of 6,146.27.
The S&P 500 index added 10 points, or 0.4%, to 2,400, trading above its all-time closing high set last week and within a hair's breadth of its intraday record of 2,403.87. All of its 11 main sectors were trading higher, led by energy and materials, up more than 1%.
The Dow Jones Industrial Average rose 73 points, or 0.4%, to 20,970. Cisco Systems Inc.(CSCO) and Johnson & Johnson(JNJ) were the top performers, up 2.4% and 1.5% respectively.
Crude-oil prices , on Monday surged more than 3% (http://www.marketwatch.com/story/crude-oil-jumps-to-2-week-high-as-saudis-russia-back-continued-output-cuts-2017-05-15) after energy ministers of Saudi Arabia and Russia said in a joint statement that they endorse a nine-month extension (http://www.marketwatch.com/story/saudi-arabia-russia-back-9-month-extension-to-opec-output-deal-2017-05-15) to current production cuts--three months longer than expected.
The proposed extension still needs to be confirmed when the 13 members of the Organization of the Petroleum Exporting Countries gather for a closely watched meeting in Vienna on May 25.
"The picture in oil market did not change at all. We are still dealing with a lot of supply and the U.S. is a swing supplier. Whenever oil reaches a certain price, U.S. producers enter the market," said Maris Ogg, president at Tower Bridge Advisors.
"However, it appears oil prices are no longer impacting earnings. The first-quarter earnings were good and the labor market is holding up, with a possible labor crunch coming. With this backdrop, we would want to stay invested in stocks," Ogg said.
The optimism over rising oil prices come as tensions rose over North Korea over the weekend. The country tested another ballistic missile over the Sea of Japan on Sunday (http://www.marketwatch.com/story/north-koreas-ballistic-missile-launch-viewed-as-challenge-to-new-president-in-south-2017-05-13), seen as a direct challenge to the newly elected president of South Korea, Moon Jae-in.
Stock movers: Energy companies were among biggest gainers on Monday (http://www.marketwatch.com/story/oil-stocks-surge-after-saudis-russians-endorse-extension-of-production-cuts-2017-05-15). Shares of Transocean Ltd.(RIG) climbed 4.4%, Chesapeake Energy Corp.(CHK) gained 3.7%, NRG Energy Inc.(NRG) added 3.8%, and Marathon Oil Corp.(MRO) gained 5.4%.
Meanwhile, shares of cybersecurity companies also advanced (http://www.marketwatch.com/story/anti-virus-stocks-rally-with-wannacry-cyber-attack-expected-to-go-on-the-rampage-again-2017-05-15) as the "WannaCry" virus was expected to continue to wreak havoc on Monday morning (http://www.marketwatch.com/story/cyberattacks-may-gear-up-again-monday-experts-fear-2017-05-14). Shares of Symantec Corp.(SYMC) gained 4.6%, Palo Alto Networks Inc.(PANW) added 4.4% and FireEye Inc.(FEYE) put on 6.5%. The PureFunds ISE Cyber Security ETF(HACK) jumped 3.2%.
Patheon NV(PTHN) soared 33% after Thermo Fisher Scientific Inc.(TMO) said it is buying the company for $7.2 billion including $2 billion of net debt (http://www.marketwatch.com/story/thermo-fisher-to-acquire-patheon-in-deal-valued-at-72-billion-including-2-billion-net-debt-2017-05-15).
In other deal news, Moody's Corp.(MCO) said it would buy Dutch business intelligence company Bureau van Dijk for EUR3 billion, or around $3.27 billion (http://www.marketwatch.com/story/moodys-to-pay-33-billion-to-buy-dutch-business-intelligence-company-bureau-van-dijk-2017-05-15). Shares were higher.
Shares of Alphabet Inc.(GOOGL)(GOOGL) gained 0.4% after Waymo LLC, the driverless car division of the Google parent, and ride-hailing startup Lyft Inc. said Sunday they would work together to develop autonomous vehicle technology (http://www.marketwatch.com/story/waymo-lyft-to-collaborate-on-self-driving-cars-2017-05-15).
The announcement is seen as another potential blow to rival Uber Technologies Inc., just as the company is headed for a court battle with Alphabet (http://www.marketwatch.com/story/the-biggest-heavyweight-silicon-valley-legal-fight-of-our-time-is-driving-forward-2017-05-13) over a key technology for self-driving cars.
Economic news: A gauge of New York-area manufacturing slumped back into negative territory in for the first time since the presidential election. The Empire state manufacturing index for May fell to negative 1, from positive 5.2 in April.
Separately, sentiment among home builders rebounded in May, buoyed by optimistic views of demand for housing.
Other markets: Stocks in Asia closed mostly higher (http://www.marketwatch.com/story/asian-markets-largely-surge-ahead-despite-global-risks-2017-05-14), with investors largely ignoring a batch of disappointing Chinese data and instead focusing on China's "One Belt, One Road" infrastructure program.
President Xi Jinping over the weekend said there will be more than $100 billion in fresh financing (http://www.marketwatch.com/story/xi-casts-china-as-guardian-of-globalization-as-he-pledges-100-billion-to-one-belt-one-road-2017-05-15) in support for the initiative, a bid to link regions via infrastructure projects that is seen as a bid to reshape the geopolitical world order by casting China as the protector of globalization.
The pledge to boost infrastructure spending also helped lift metals (http://www.marketwatch.com/story/gold-firms-platinum-surges-on-chinas-renewed-infrastructure-pledge-2017-05-15), with platinum logging the biggest gain at 1.6%. Gold was up 0.3% at $1,231.30 an ounce.
The dollar traded lower (http://www.marketwatch.com/story/dollar-down-against-commodity-currencies-as-oil-prices-surge-2017-05-15) against most other major currencies, while European stock markets were mixed (http://www.marketwatch.com/story/european-oil-mining-shares-bounce-up-outpacing-broader-market-2017-05-15). The yield on the 10-year Treasury note was unchanged at 2.33%.
(END) Dow Jones Newswires
May 15, 2017 10:17 ET (14:17 GMT)