US close: Markets rally as oil prices surge
US markets started the week with a bang on Monday, off the back of some serious rises in oil prices during the session.
The Dow Jones Industrial Average gained 228.53 points, closing up 1.4% to 16,620.52. The S&P 500 gained 1.45%, or 27.71 points, to finish at 1,945.49, and the Nasdaq Composite closed up 1.47% - 66.18 points - to end the day at 4,750.61.
Oil prices rallied throughout the day, with Brent crude last up 4.79% to $34.67 per barrel and West Texas Intermediate up 4.83% to $33.36.
The increase in prices came after the International Energy Agency said in its medium term outlook that US shale oil production was expected to fall by 600,000 barrels per day this year, and by another 200,000 bopd in 2017.
That rise helped lift many recently hammered energy stocks in New York, including Chevron, up 2.73% to $88.86, and Schlumberger, up 3.01% to $74.46.
Allergan also rose 3.65% to $285.82, after the group narrowed its quarterly loss, boosted by better-than-expected revenue. Lumber Liquidators was pummeled, however, after the Centers for Disease Control and Prevention said cancer risks associated with the company's flooring products were higher than previously thought.
That stock closed down 19.85% at $11.39.
The rise in the markets came as officials announced slower growth in US manufacturing - the US Markit PMI for February came in at 51.0, against a previous score of 52.4 and a forecast for the same. A reading above 50 indicates expansion in the sector, while below 50 represents a contraction.
In currencies, the greenback followed the lead of the markets and was 1.79% stronger against an embattled sterling, at GBP 0.7065. It advanced 0.88% against the common currency to EUR 0.9064, and was up 0.22% against the yen to JPY 112.88.
S&P 500 - TOP RISERS
- Chesapeake Energy Corp. - $2.40 +19.50%
- Freeport McMoRan Copper & Gold In. - $7.93 +14.60%
- Alcoa Inc. - $8.91 + 13.21%
- Marathon Oil Corp. - $7.49 +11.29%
- Consol Energy Inc. - $8.70 +10.55%
- Newfield Exploration Co - $24.50 +9.86%
- Devon Energy Corp. - $20.30 +8.85%
- Cabot Oil & Gas Corp. - $21.54 +8.19%
- Tenet Healthcare Corp - $25.50 +7.05%
- Murphy Oil Corp. - $16.88 +7.04%
S&P 500 - TOP FALLERS
- Sysco Corp. - $42.78 -4.89%
- Perrico Company plc - $124.08 -4.07%
- Whole Foods Market Inc. - $30.66 -2.33%
- Kellogg Co. - $73.82 -2.25%
- Honeywell International Inc. - $105.17 -1.96%
- Sandisk Corp. - $67.68 -1.70%
- Ca Inc. - $29.53 -1.60%
- Expedia Inc. - $106.96 -1.57%
- CME Group Inc. - $91.97 -1.45%
- Mead Johnson Nutrition Co. - $74.00 -1.06%