Wednesday, June 8, 2016

Wall St. Rises Along With Oil Prices

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Wall St. Rises Along With Oil Prices

United States markets were higher in early trading on Wednesday as energy, machinery and chemicals companies got a lift from the weaker dollar. The price of oil rose after China reported …

Wall St. Continues Gains With Oil Prices and Weaker Dollar

By THE ASSOCIATED PRESSJUNE 8, 2016

Stocks rose for the third day in a row on Wednesday as machinery and mining companies traded higher. Oil prices also continued their rise, and stocks and oil prices are at their highest points in almost a year. Metals prices jumped as the dollar got weaker.

The Dow Jones industrial average rose 66.77 points, or 0.4 percent, to 18,005.05. The Standard & Poor’s 500-stock index gained 6.99 points, or 0.3 percent, to 2,119.12. The Nasdaq composite added 12.89 points, or 0.3 percent, to 4,974.64. The S.&P. 500 and oil prices are both at their highest levels since July, and the Nasdaq has not been this high since Dec. 31.

ENERGY Benchmark United States crude gained 87 cents to $51.23 a barrel on the New York Mercantile Exchange. Brent crude, used to price international oils, gained $1.07 cents to $52.51 a barrel in London.

The price of crude oil has risen over the last few days as the dollar has weakened. On Tuesday, United States crude closed at more than $50 a barrel for the first time since July.

CURRENCIES The dollar declined to 106.94 yen from 107.31 yen late Tuesday. The euro edged up to $$1.1397 from $1.1361.

The dollar has lost some of its strength after Friday’s disappointing jobs report. That has helped energy companies, as well as mining companies and chemicals and machinery makers; a weaker dollar makes American goods more affordable in other countries.

Shares of the machinery maker Caterpillar closed up 1.3 percent. Shares of the gold and copper producer Freeport-McMoRan were up 3.1 percent, shares of the gold producer Newmont Mining gained 1.2 percent and shares of the aluminum company Alcoa rose 1 percent.

PLAY ON The restaurant chain Dave & Buster’s reported strong first-quarter results and raised its outlook for the year. Its stock closed up 10.2 percent.

PAY UP Verifone Systems, which makes terminals used for electronic payments, cut its annual forecast after it reported disappointing quarterly results. The company said it would eliminate jobs and review some of its struggling businesses. The stock gave up 24.7 percent.

DRINK UP Brown-Forman, the maker of Jack Daniel’s and other liquor brands, gained ground after it reported strong fourth-quarter results. The stock closed up 3.5 percent. Shares of a competitor, Constellation Brands, which makes the Corona, Negra Modelo and Pacifico beers, ended trading up 2 percent. Their gains helped take household goods companies higher.

OXFORD ROCKED Shares of Oxford Industries, the owner of Tommy Bahama, Lilly Pulitzer and other clothing lines, slumped after its first-quarter results disappointed investors. The stock closed down 0.97 percent.

SKULLCANDY STRATEGY Shares of the headphone maker Skullcandy surged after the company’s founder said he might take the company private. Rick Alden, Skullcandy’s largest shareholder, disclosed the idea in a form filed with the Securities and Exchange Commission. Skullcandy stock rose 16 percent.

HITTING RESET Shares of the computer networking company F5 Networks lost 2.9 percent. The stock had risen 13 percent on Tuesday on reports that the company would consider selling itself.

EUROPEAN MARKETS In Germany, the DAX fell 0.7 percent, and in France, the CAC 40 lost 0.6 percent. The FTSE 100 rose 0.3 percent in Britain.

GLOBAL GROWTH The World Bank cut its forecast for this year’s global economic growth to 2.4 percent from the 2.9 percent pace projected in January. It cited sluggish growth in advanced economies, stubbornly low commodity prices, weak global trade and diminishing capital flows. It said half the revision was prompted by the struggle of commodity-exporting economies to adapt to lower prices for oil and other major commodities.

ASIA’S DAY The Nikkei 225 declined 0.9 percent in Japan, while in Hong Kong, the Hang Seng shed 0.1 percent. The Shanghai composite index fell 0.3 percent in China. The Kospi was up 0.8 percent in South Korea. In Australia, the S.&P./ASX 200 was nearly flat, while the Sensex in India was up 0.1 percent. Benchmarks in Taiwan, Singapore and the Philippines gained while New Zealand, Thailand and Indonesia declined.

BONDS Bond prices rose. The yield on the 10-year Treasury note fell to 1.71 percent from 1.72 percent.