US close: Stocks end mostly higher as oil prices jump
US stocks closed mostly higher on Tuesday following a surge in oil prices and a dovish speech by Federal Reserve chair Janet Yellen.
The Dow Jones Industrial Average climbed 0.10%, the S&P 500 gained 0.13% while the Nasdaq fell 0.13%.
US oil prices reached above $50 a barrel for the first time since July as disruptions to output in Nigeria and Canada helped reduce the global oversupply of crude.
The Energy Information Administration said in its short-term energy outlook on Tuesday that US crude production fell by 250,000 barrels a day in May from April.
West Texas Intermediate crude jumped 1.5% to $50.46 per barrel and Brent increased 1.8% to $51.52 per barrel at 2129 BST.
Meanwhile, investors continued to digest a speech by Yellen in Philadelphia on Monday. She said the US economy was making progress and interest rates would probably need to rise “gradually over time to ensure price stability and maximum sustainable employment in the longer run”.
However she did not touch on the timing of the next interest rate hike, which was seen by economists to suggest that an increase was unlikely at the policy next week - particularly after a much worse-than-expected US non-farm payrolls report on Friday.
“After last Friday’s employment report and yesterday’s speech by Yellen we have changed our call for the Fed’s first rate hike this year to September,” said Rabobank.
“The slowdown in the services sector, apparent not only in the employment report, but in the ISM Non-Manufacturing Survey as well, and Yellen’s very cautious tone make a delay to September more likely than July. Our call for two hikes this year remains unchanged, and we still expect the second in December.”
In economic data, the Federal Reserve said US consumer borrowing slowed in April.
Outstanding consumer credit rose by a seasonally adjusted $13.42bn in April from the prior month The 4.49% seasonally adjusted annual growth rate compared to March’s downwardly revised 9.57% pace. Economists had expected a $20bn gain in April.
Among corporate stocks, Valeant Pharmaceuticals slumped after saying it swung to a first quarter net loss of $1.08 and slash its estimate for 2016 earnings.
Shares in Ralph Lauren plunged after the company revealed a restructuring plan in an effort to lift profitability.
DryShips tumbled after the ocean transportation company disclosed in a filing that it defaulted on three bank loans.
FedEx gained after saying it has raised its quarterly dividend 60% to 40 cents a share.
Verizon Communications advanced as it said it would submit a second-round bid of around $3 billion for Yahoo’s core internet business. Yahoo’s shares fell.
S&P 500 - Risers
F5 Networks Inc. (FFIV) $123.94 +12.63%
Eog Resources Inc. (EOG) $85.42 +5.11%
Marathon Oil Corp. (MRO) $14.62 +4.73%
Newfield Exploration Co (NFX) $41.81 +4.68%
Apache Corp. (APA) $58.21 +4.66%
ConocoPhillips (COP) $47.54 +4.44%
Murphy Oil Corp. (MUR) $32.79 +4.33%
Noble Energy Inc. (NBL) $37.49 +4.28%
Helmerich & Payne Inc. (HP) $67.35 +4.03%
National Oilwell Varco Inc. (NOV) $36.25 +3.96%
S&P 500 - Fallers
Biogen Inc (BIIB) $252.86 -12.76%
Alexion Pharmaceuticals Inc. (ALXN) $138.13 -10.88%
TripAdvisor Inc. (TRIP) $68.63 -3.96%
Discovery Communications Inc. Class A (DISCA) $27.85 -3.57%
Freeport-McMoRan Inc (FCX) $11.24 -3.52%
Chipotle Mexican Grill Inc. (CMG) $433.39 -2.67%
Discovery Communications Inc. Class C (DISCK) $26.83 -2.58%
Constellation Brands Inc. Class A (STZ) $151.11 -2.57%
Invesco Ltd. (IVZ) $29.85 -2.48%
Public Service Enterprise Group Inc. (PEG) $44.18 -2.47%
Dow Jones I.A - Risers
Chevron Corp. (CVX) $103.32 +2.13%
Verizon Communications Inc. (VZ) $51.75 +2.05%
Exxon Mobil Corp. (XOM) $90.71 +1.53%
Intel Corp. (INTC) $31.88 +0.63%
Home Depot Inc. (HD) $129.92 +0.57%
Caterpillar Inc. (CAT) $76.81 +0.51%
3M Co. (MMM) $170.91 +0.49%
Apple Inc. (AAPL) $99.03 +0.41%
International Business Machines Corp. (IBM) $153.33 +0.39%
Travelers Company Inc. (TRV) $114.58 +0.22%
Dow Jones I.A - Fallers
Nike Inc. (NKE) $53.55 -1.38%
Goldman Sachs Group Inc. (GS) $155.17 -1.20%
Unitedhealth Group Inc. (UNH) $136.94 -0.88%
Procter & Gamble Co. (PG) $82.32 -0.54%
Walt Disney Co. (DIS) $98.35 -0.44%
JP Morgan Chase & Co. (JPM) $65.06 -0.34%
Merck & Co. Inc. (MRK) $57.00 -0.30%
Pfizer Inc. (PFE) $34.84 -0.26%
Coca-Cola Co. (KO) $45.32 -0.11%
Cisco Systems Inc. (CSCO) $29.07 -0.10%
Nasdaq 100 - Risers
Tesla Motors Inc (TSLA) $232.34 +5.28%
Skyworks Solutions Inc. (SWKS) $68.67 +3.87%
Western Digital Corp. (WDC) $49.74 +3.58%
American Airlines Group (AAL) $32.36 +3.52%
Cerner Corp. (CERN) $56.97 +3.21%
Seagate Technology Plc (STX) $24.65 +3.18%
Stericycle Inc. (SRCL) $102.00 +2.66%
Dish Network Corp. (DISH) $56.06 +2.26%
Sba Communications Corp. (SBAC) $104.42 +2.22%
Mattel Inc. (MAT) $32.16 +1.87%
Nasdaq 100 - Fallers
Biogen Inc (BIIB) $252.86 -12.76%
Alexion Pharmaceuticals Inc. (ALXN) $138.13 -10.88%
JD.com, Inc. (JD) $22.01 -5.62%
Biomarin Pharmaceutical Inc. (BMRN) $85.50 -4.49%
TripAdvisor Inc. (TRIP) $68.63 -3.96%
Incyte Corp. (INCY) $82.44 -3.57%
Discovery Communications Inc. Class A (DISCA) $27.85 -3.57%
Discovery Communications Inc. Class C (DISCK) $26.83 -2.58%
Regeneron Pharmaceuticals Inc. (REGN) $394.47 -2.33%
Baidu Inc. (BIDU) $170.86 -2.15%