US close: Stocks close higher on oil price rally
US stocks ended Tuesday's session higher as a rally in oil prices boosted energy shares.
The Dow Jones Industrial Average rose 0.94%, the S&P 500 gained 0.97% and the Nasdaq edged up 0.80%.
Oil prices jumped on hopes that global producers will agree to freeze output at a 17 April meeting in Doha, Qatar.
“The meeting on Sunday comprises of producers of around three quarters of global output and if a deal is agreed on a production freeze or even a cut, the latter of which is very unlikely, it could be the catalyst that drives the next rally in oil and take it back above $50 for the first time since November,” said Craig Erlam, senior market analyst at Oanda.
“There are a lot of obstacles to such a deal being done though, not least Iran’s determination to return to pre-sanctions production levels, which makes me sceptical that it can be achieved.”
At 2122 BST, West Texas Intermediate crude surged 3.8% to $41.96 per barrel and Brent soared 3.6% to $44.45 per barrel.
Meanwhile, investors shrugged off the International Monetary Fund's downward revision to global growth. The IMF cut its forecast for global growth in 2016 to 3.2% from the 3.4% it expected in January, with all advanced economies revised downwards. The estimate for the US growth this year was reduced to 2.4% versus 2.6% at the start of the year.
In economic data, the US import price index rose 0.2% month-on-month in March, compared to forecasts for 1.2% growth and the previous month’s 0.3% decline.
The National Federation of Independent Business said its small business optimism index fell to a two-year low of 92.6 in March from 92.9 in February, missing expectations for a reading of 93.7.
On the corporate front, traders were still digesting results from aluminium producer Alcoa, which unofficially kicked off the earnings season with worse-than-expected quarterly revenue on Monday
Earnings fell to $16m from $195 a year before, while revenue dropped 15% to $4.9bn versus analysts’ forecasts of around $5.2bn.
“US earnings season is underway and first indications are that this could live up to its billing as one of the worst in years,” said Lee Wild of Interactive Investor.
“Profit at America's largest companies is widely-tipped to have fallen by an average of 9% during the first quarter. But aluminium producer Alcoa, the unofficial starting gun, said overnight it made less than expected at the start of 2016.”
This week will see earnings releases from heavyweights JPMorgan Chase, Citigroup and Bank of America Corp.
Hertz Global Holdings nudged lower after downgrading its guidance for 2016.
Marathon Oil edged higher after announcing late on Monday that it has signed agreements to sell non-core assets for $950m.
In currencies, the dollar was up 0.57% versus the yen as the Japanese finance minister warned against excessive strength of its currency which has risen against the greenback for seven consecutive sessions.
The dollar fell 0.21% against the pound and increased 0.19% against the euro.
S&P 500 - Risers
Chesapeake Energy Corp. (CHK) $6.05 +34.44%
Southwestern Energy Co. (SWN) $10.54 +15.44%
Marathon Oil Corp. (MRO) $13.12 +12.43%
Murphy Oil Corp. (MUR) $28.82 +9.54%
Range Resources Corp. (RRC) $38.01 +9.22%
Transocean Ltd. (RIG) $9.59 +8.12%
ONEOK Inc. (OKE) $32.35 +7.65%
Freeport-McMoRan Inc (FCX) $10.43 +6.86%
Apache Corp. (APA) $53.29 +6.69%
Devon Energy Corp. (DVN) $30.96 +6.57%
S&P 500 - Fallers
Juniper Networks Inc. (JNPR) $23.06 -7.35%
Mallinckrodt Plc Ordinary Shares (MNK) $58.40 -4.50%
Fastenal Co. (FAST) $45.34 -3.41%
Hewlett Packard Enterprise (HPE) $17.24 -2.76%
Micron Technology Inc. (MU) $10.17 -2.68%
Alcoa Inc. (AA) $9.48 -2.67%
Allergan plc (AGN) $222.57 -2.54%
Starbucks Corp. (SBUX) $59.50 -2.30%
F5 Networks Inc. (FFIV) $95.19 -2.15%
Skyworks Solutions Inc. (SWKS) $74.64 -1.88%
Dow Jones I.A - Risers
Chevron Corp. (CVX) $97.51 +2.38%
Wal-Mart Stores Inc. (WMT) $68.80 +2.08%
Caterpillar Inc. (CAT) $76.10 +1.97%
JP Morgan Chase & Co. (JPM) $59.28 +1.86%
E.I. du Pont de Nemours and Co. (DD) $64.31 +1.72%
American Express Co. (AXP) $60.68 +1.47%
Goldman Sachs Group Inc. (GS) $154.31 +1.39%
Apple Inc. (AAPL) $110.44 +1.30%
Exxon Mobil Corp. (XOM) $84.35 +1.24%
Boeing Co. (BA) $129.47 +1.22%
Dow Jones I.A - Fallers
Nasdaq 100 - Risers
Netflix Inc. (NFLX) $106.98 +4.19%
Alexion Pharmaceuticals Inc. (ALXN) $153.55 +3.83%
Regeneron Pharmaceuticals Inc. (REGN) $408.07 +3.01%
JD.com, Inc. (JD) $28.10 +3.01%
Priceline Group Inc (PCLN) $1,300.28 +2.82%
Twenty-First Century Fox Inc Class A (FOXA) $29.29 +2.66%
Ctrip.Com International Ltd. Ads (CTRP) $46.87 +2.61%
Twenty-First Century Fox Inc Class B (FOX) $29.42 +2.58%
Biomarin Pharmaceutical Inc. (BMRN) $85.00 +2.16%
Tractor Supply Company (TSCO) $88.86 +2.16%
Nasdaq 100 - Fallers
Fastenal Co. (FAST) $45.34 -3.41%
Micron Technology Inc. (MU) $10.17 -2.68%
Starbucks Corp. (SBUX) $59.50 -2.30%
Skyworks Solutions Inc. (SWKS) $74.64 -1.88%
Autodesk Inc. (ADSK) $55.92 -1.67%
Vertex Pharmaceuticals Inc. (VRTX) $83.37 -1.30%
Akamai Technologies Inc. (AKAM) $50.54 -1.02%
Cognizant Technology Solutions Corp. (CTSH) $59.46 -0.87%
Tesla Motors Inc (TSLA) $247.82 -0.84%
Xilinx Inc. (XLNX) $45.87 -0.74%