clear
Monday October 22nd, 2018 4:26AM

US stocks brush off first wobble of the year to climb again

By The Associated Press

NEW YORK (AP) — U.S. stocks recovered from their first wobble of the year and pushed back to record heights on Thursday. Surging energy stocks led the way after oil hit its highest price since 2014.

The gains for indexes marked a return to calm for markets, which got a whiff of nervousness a day earlier after interest rates climbed. Rates held steady Thursday, and the Standard & Poor's 500 index was on pace for its seventh gain in the last eight days.

KEEPING SCORE: The S&P 500 was up 15 points, or 0.6 percent, at 2,763, as of 3:10 p.m. Eastern time. If it ends the day there, the index would surpass its record of 2,751.29 set on Tuesday.

The Dow Jones industrial average rose 154 points, or 0.6 percent, to 25,523, the Nasdaq composite gained 47 points, or 0.7 percent, to 7,200 and the Russell 2000 index of small-cap stocks jumped 26points, or 1.7 percent, to 1,585.

RATES AT ROOT OF CONCERNS: The yield on the 10-year Treasury note dipped to 2.53 percent from 2.56 percent late Wednesday.

Rates have been at center stage in recent days following the 10-year yield's climb from 2.40 percent early in the year. It got as high as 2.59 percent on Wednesday before falling back later in the day.

China's foreign exchange regulator challenged a report from Wednesday that had helped drive up yields, which said China may slow or halt purchases of U.S. Treasurys. A U.S. government report on Thursday also showed that inflation was weaker on the wholesale level last month than economists expected. Weak inflation would likely result in rates staying relatively low.

Investors say they're prepared for a gradual rise in rates, but a quick jump could easily jolt markets out of the calm, upward ride they've been on.

BIGGEST GAINERS: Energy stocks jumped after benchmark U.S. crude gained 23 to settle at $63.80 per barrel. It crossed above $64 per barrel earlier in the day for the first time since Decedmber 2014. Brent crude, the international standard, gained 6 cents to $69.26 per barrel.

That helped drive energy stocks in the S&P 500 to a 2 percent gain, the largest among the 11 sectors that make up the index. They're on pace for their best day since June.

Anadarko Petroleum and Apache had two of the biggest gains among the stocks that make up the index. Anadarko Petroleum gained $3.05, or 5.5 percent, to $58.46, and Apache rose $2.29, or 5.2 percent, to $46.28.

GAINING ALTITUDE: Delta Air Lines jumped $3.25, or 5.8 percent, to $59.11 after it reported stronger results for last quarter than analysts expected on the back of higher fares.

CALM RIDE: The stock market has repeatedly shrugged off concerns through its placid ride to records. Whether investors are worried about a pickup in rates in the future or about how stocks have become more expensive than they've historically been relative to corporate profits, any dip for the market over the last year has been shallow and short.

That's rewarded investors who have repeatedly "bought the dip" and seen every wobble in prices as a buying opportunity. The next test for the market may arrive in coming weeks as companies report how much profit they made in the last three months of 2017.

Businesses will need to produce big numbers to justify the gains their stocks have made, and expectations are also high that CEOs will unveil encouraging profit forecasts for 2018 after Washington cut their income-tax rates.

MARKETS ABROAD: Japan's Nikkei 225 fell 0.3 percent, South Korea's Kospi retreated 0.5 percent and Hong Kong's Hang Seng index edged 0.2 percent higher.

Britain's FTSE 100 rose 0.2 percent, France's CAC 40 was down 0.3 percent and Germany's DAX dipped 0.6 percent.

CURRENCIES: The dollar held steady at 111.10 Japanese yen, while the euro rose to $1.2039 from $1.1957 late Wednesday.

COMMODITIES: Gold gained $3.20 to settle at $1,322.50 per ounce, silver lost 7 cents to $16.97 per ounce and copper rose 2 cents to $3.23 per pound.

Natural gas rose 18 cents to settle at $3.08 per 1,000 cubic feet, heating oil was nearly flat at $2.08 per gallon and wholesale gasoline was steady at $1.84 per gallon.

___

AP Business Writer Youkyung Lee contributed from Seoul, South Korea.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Utilities
© Copyright 2018 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Missouri governor admits having affair but denies blackmail
Missouri governor admits he had an affair but insists he did not blackmail woman
1:25PM ( 12 minutes ago )
California mudslides happened as cellphone alerts went out
Officials first sent widespread cell phone alerts warning of the imminent mudslides as massive streams of debris were already flowing through a Southern California neighborhood
1:21PM ( 16 minutes ago )
Groups record voting rights abuses against Native Americans
Native Americans are documenting voting rights abuses across the country in an effort to improve access to the polls
1:13PM ( 24 minutes ago )
Associated Press (AP)
Queen's bra-fitter says book cost company royal warrant
The luxury bra maker that supplied lingerie to Queen Elizabeth II lost its royal warrant after a book described the atmosphere at Buckingham Palace
1:00PM ( 38 minutes ago )
Local governments won't say what they're offering Amazon
Many state and local governments competing for Amazon's second headquarters are refusing to disclose the tax breaks or other financial incentives they are offering the online giant
1:00PM ( 38 minutes ago )
Stevie Wonder wows crowd on 'smart' piano at tech show
Trying to distinguish your tech product among the thousands on display at the CES gadget show in Las Vegas is no easy feat, so it helps when music legend Stevie Wonder pays an unexpected visit to your booth
12:57PM ( 40 minutes ago )
AP Business
European Central Bank looks to review stimulus duration
Top officials at the European Central Bank at their last meeting remained wary of prematurely signaling the next steps in an expected exit from their monetary stimulus polices
11:39AM ( 1 hour ago )
Virginia Gov. Terry McAuliffe reinvents image as state CEO
Virginia Gov. Terry McAuliffe is leaving office after a largely successful four-year term that saw him reinvent his image from fundraiser to administrator
11:32AM ( 2 hours ago )
Coal executive's 'action plan' finds success under Trump
A coal company executive's wish list of actions that seek to roll back environmental and mine safety regulations has caught the eye of the Trump administration
10:22AM ( 3 hours ago )
AP Business - Economy
Asian shares mixed after Wall Street rally fizzles
Asian stock markets mixed after Wall Street posts first losses of 2018
2:53AM ( 10 hours ago )
Worries China will lower US asset purchases hits markets
Global shares fall as momentum from Wall Street's long winning streak fades
7:46AM ( 1 day ago )
Global shares slide as Wall Street rally fades
Global shares fall as momentum from Wall Street's long winning streak fades
4:09AM ( 1 day ago )
AP Business - Financial Markets
Another GOP governor seeks exclusion from drilling proposal
Another Republican governor is asking the Trump administration to exclude his state from a plan to open more U.S. coastal waters to offshore oil drilling
5:39AM ( 7 hours ago )
China's modern Silk Road hits political, financial hurdles
China's plan to expand trade across Asia and Europe with a modern Silk Road of railways and other infrastructure is hitting political and financial hurdles
12:29AM ( 13 hours ago )
Coal executive's 'wish list' finds success under Trump
A coal company executive's "wish list" of actions that seek to roll back environmental and mine safety regulations has caught the eye of the Trump administration
12:26AM ( 13 hours ago )
AP Business - Industries
NYC sues, divests from oil firms over climate change
New York City is suing five major oil companies, claiming they have contributed to global warming
3:07PM ( 22 hours ago )
The Latest: Oil companies dispute climate lawsuit claims
Oil companies say lawsuits not the answer to addressing global warming following suit filed by NYC
2:25PM ( 23 hours ago )
The Latest: NYC sues oil companies over climate change
New York City is suing five major oil companies, claiming they have contributed to global warming
11:57AM ( 1 day ago )
AP Business - Utilities
Missouri governor admits having affair but denies blackmail
Missouri governor admits he had an affair but insists he did not blackmail woman
1:25PM ( 12 minutes ago )
California mudslides happened as cellphone alerts went out
Officials first sent widespread cell phone alerts warning of the imminent mudslides as massive streams of debris were already flowing through a Southern California neighborhood
1:21PM ( 16 minutes ago )
Groups record voting rights abuses against Native Americans
Native Americans are documenting voting rights abuses across the country in an effort to improve access to the polls
1:13PM ( 24 minutes ago )
Russia dismisses Democratic US Senate report as unfounded
The Kremlin says a new report by Senate Democrats describing Russian interference in the U.S. throughout Europe is unfounded
1:07PM ( 30 minutes ago )
Jailed Catalan separatists pledge to eschew unilateral moves
Prominent backers of Catalonia's independence push promise to oppose further unilateral moves to secede Spain
1:02PM ( 35 minutes ago )