clearn.png
Saturday August 17th, 2019 6:51AM

US stocks rise again, though energy shares slump with oil

By The Associated Press
Related Articles
  Contact Editor

Stocks moved broadly higher on Wall Street in afternoon trading Wednesday, extending the market's strong gains from the previous day.

The gains were tempered by a sharp drop in crude oil prices, which is sending energy stocks lower. Benchmark U.S. crude plunged 3.4% to $51.68 a barrel following a report showing an unexpected surge in U.S. crude supplies. U.S. crude has declined in five of the past six weeks and is now 22.1% below its 2019 closing high of $66.30 in April. The slide puts U.S. crude in what Wall Street calls a bear market. Occidental Petroleum fell 4.8% and Halliburton slid 3.9%.

Traders shrugged off a report from payroll processor ADP that showed private U.S. companies added the fewest jobs in nine years last month, as manufacturers, construction firms and mining companies cut workers. The results fell far short of economists' forecasts.

The discouraging jobs data, which comes ahead of the government's own tally of May hiring on Friday, could be seen as good news by investors who hope that the Federal Reserve will cut interest rates to steady the economy as the U.S. brawls with other major economies over trade.

"It could help underpin a Fed rate hike," said Quincy Krosby, chief market strategist at Prudential Financial. "The market has been in essence calling for a rate hike for a number of months as the economic data have waned and tariff issues have intensified."

Signs that the Fed is willing to cut interest rates to reinforce economic growth are encouraging traders to bid up stocks after a stumbling start to the week.

Federal Reserve Chairman Jerome Powell said Tuesday that the central bank was "closely monitoring" developments in the United States' multiple trade conflicts and would "act as appropriate" to sustain the nation's economic expansion.

Investors now expect the central bank to cut rates at least once and possibly twice before year's end, in part because of fallout from the trade war.

Stocks slumped broadly in May as investors grew anxious over the trade disputes. An escalating trade war between the U.S. and China and the added threat of a new trade war with Mexico sent investors fleeing to safer holdings, like bonds.

The U.S. and Mexico were holding trade talks in Washington Wednesday afternoon. A 5% tariff on imports from Mexico is due to go into effect on Monday, barring an agreement between the two countries. The Trump administration is demanding that Mexico step up efforts to halt Central American migrants from making their way to the U.S.

Technology companies were among the most notable gainers Wednesday. Apple rose 1.1% and Microsoft added 1.6%. Salesforce climbed 4.5% after blowing away profit forecasts.

Traders also snapped up health care stocks. Boston Scientific gained 2.5% and Medtronic rose 2.2%.

Industrial stocks also rose broadly, with notable gains by airlines as fuel costs fell. American Airlines Group gained 4% and Southwest Airlines rose 2.3%.

A trickle of corporate earnings reports moved several stocks. GameStop plummeted after the video game maker badly missed sales estimates in the first quarter. Pivotal Software took a nosedive after the cloud-computing company slashed its revenue forecast for the year.

KEEPING SCORE: The S&P 500 index was up 0.5% as of 3:39 p.m. Eastern time. The Dow Jones Industrial Average climbed 141 points, or 0.6%, to 25,474. The Nasdaq composite rose 0.3%. The Russell 2000 index of smaller companies slipped 0.2%.

Major stock indexes in Europe closed broadly higher.

WEAK GAME: Video game retailer GameStop plunged 36.8% after it eliminated its quarterly dividend. The stock is now down 61.5% this year.

The company has been struggling as it contends with more competition from companies selling consoles and games online. Global sales fell 13.3% during the most recent quarter, falling far short of Wall Street forecasts. Sales at established stores also fell far short of forecasts.

GameStop is also in the midst of a cost-cutting program and coming off of a recent leadership shake up.

PLENTIFUL PURSE: Vera Bradley rose 2.8% after the handbag and accessories company reported solid first quarter profit and revenue results. Sales at established stores blew past Wall Street forecasts.

The company also gave investors a surprisingly good revenue forecast for the current quarter and tightened its outlook for the year.

CANNED PROFIT: Campbell Soup jumped 9.5% after the iconic soup company swung to a fiscal third quarter profit and beat Wall Street forecasts.

The company, which also makes Pepperidge Farm cookies and V8 juice, also beat revenue forecasts for the quarter and said sales growth was fueled by its snacks business.

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Corporate News, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services, AP Business - Utilities
© Copyright 2019 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Trump reads from FDR's prayer to the US on D-Day
President Donald Trump read from a prayer delivered by President Franklin D. Roosevelt as he joined other world leaders and veterans Wednesday in marking the 75th anniversary of D-Day
11:57AM ( 19 minutes ago )
US stocks rise again, though energy shares slump with oil
U.S. stocks rose in midday trading on Wall Street Wednesday, although a slide in energy companies tempered the market's gains.
11:52AM ( 23 minutes ago )
Battery-powered glider crashes into Connecticut home
A battery-powered glider crashed into the roof of a Connecticut home, injuring the pilot and scaring a mother and her two children who were watching TV
11:47AM ( 28 minutes ago )
Associated Press (AP)
The Latest: White House plays down tariff meeting hopes
White House officials are downplaying expectations ahead of a meeting Wednesday afternoon between the U.S. and Mexico over President Donald Trump's threatened tariffs on Mexican goods
11:22AM ( 54 minutes ago )
De Blasio gets 2020 presidential backing from local union
New York City Mayor Bill de Blasio picks up the 1st union endorsement of his longshot presidential bid
11:05AM ( 1 hour ago )
Reforms to Dutch pension system agreed after years of talks
After years of discussions, the Dutch government, employers and labor unions have hammered out a proposal to reform the country's pension framework aimed at making the costly system sustainable as people live longer
10:56AM ( 1 hour ago )
AP Business
Production resumes at world's biggest Nutella plant
Unionists and owner Ferrero say workers at the world's biggest Nutella factory have removed picket lines and are back to work after production was brought to a near standstill in a dispute over salary negotiations
9:38AM ( 2 hours ago )
Kate Spade New York fulfills $1 million mental health pledge
A year after Kate Spade took her own life, the foundation that bears her name has announced the completion of a $1 million pledge to support mental health services
9:00AM ( 3 hours ago )
Trade war comes to Louisville, Jack Daniels takes tariff hit
Tariff war pulls on sales growth at
8:20AM ( 3 hours ago )
AP Business - Corporate News
US tariffs looming, many in Mexico back president's approach
Facing possible crippling tariffs, many in Mexico support President Andrés Manuel López Obrador's measured response
8:06AM ( 4 hours ago )
Global markets rise on US Fed's signal on rate cuts
Global markets are up again after the Federal Reserve signaled it was ready to cut interest rates to support the U.S. economy against risks from trade conflicts
7:38AM ( 4 hours ago )
Amid trade war, China's Xi talks up economy, heads to Moscow
Amid trade war, China's Xi talks up economy, heads to Moscow
5:41AM ( 6 hours ago )
AP Business - Economy
Dow jumps over 500 points amid hopes of Fed rate cut
The Dow jumped more than 500 points Tuesday as investors welcomed signs the Fed may cut interest rates to help buttress U.S. economic growth in the face of escalating trade wars
8:23PM ( 15 hours ago )
US stocks move broadly higher; Dow jumps over 450 points
Stocks are marching sharply higher on Wall Street in afternoon trading after the head of the Federal Reserve signaled that the central bank is prepared to cut interest rates to sustain U.S. economic growth
3:39PM ( 20 hours ago )
US stocks move broadly higher; Dow jumps over 400 points
Stocks are marching sharply higher on Wall Street in afternoon trading after the head of the Federal Reserve signaled that the central bank is prepared to cut interest rates to sustain U.S. economic growth
2:28PM ( 21 hours ago )
AP Business - Financial Markets
2020 hopeful Inslee: Build US foreign policy around climate
Democratic presidential hopeful Jay Inslee is arguing the U.S. must shape its foreign policy around a commitment to combat the climate crisis
8:14AM ( 4 hours ago )
SEC moving to require brokers to reveal conflicts for advice
Federal regulators are moving to require detailed disclosures from brokers to customers of their potential conflicts of interest in dispensing advice for retirement planning and other investments.
3:08AM ( 9 hours ago )
Saudi Arabia flies Iranian to hospital off 'hostile' ship
Saudi Arabia helps evacuate Iranian crew member from 'hostile' ship off Yemen coast
1:35AM ( 10 hours ago )
AP Business - Industries
At stores and online, health care moves closer to customers
CVS Health is pushing deeper into customer health again with plans to add dietitians, medical equipment and space for the occasional yoga class to 1,500 stores
1:06PM ( 23 hours ago )
Powell says Fed stands ready to respond to trade conflicts
Powell says Fed is prepared to respond to Trump's trade conflicts if needed
10:40AM ( 1 day ago )
CVS announces further expansion into health care services
CVS Health is pushing deeper into customer health again with plans to add dietitians, medical equipment and space for the occasional yoga class to 1,500 stores
9:00AM ( 1 day ago )
AP Business - Financial Services
Trump reads from FDR's prayer to the US on D-Day
President Donald Trump read from a prayer delivered by President Franklin D. Roosevelt as he joined other world leaders and veterans Wednesday in marking the 75th anniversary of D-Day
11:57AM ( 19 minutes ago )
Battery-powered glider crashes into Connecticut home
A battery-powered glider crashed into the roof of a Connecticut home, injuring the pilot and scaring a mother and her two children who were watching TV
11:47AM ( 29 minutes ago )
The Latest: Trump makes first presidential visit to Ireland
President Donald Trump has arrived in Ireland on his first presidential visit to the country
11:43AM ( 33 minutes ago )
Rolling Stones add guest artists to North American tour
The Rolling Stones are getting some company on their North American tour
11:38AM ( 38 minutes ago )
The Latest: Last 4 QFs rescheduled; women's SFs moved
The Latest at the French Open: The French Open has rescheduled the four remaining singles quarterfinals and pushed the women's semifinals back a day, too.
11:37AM ( 39 minutes ago )