US open: Stocks rise as sentiment recovers after Brexit

US stocks rose on Thursday as investor sentiment continued to recover following last week’s European Union referendum.

At 1548 BST the Dow Jones Industrial Average increased 0.39%, the S&P 500 climbed 0.35% and the Nasdaq edged up 0.26%.

Oil prices fell, however, as worries about the global supply glut resumed on higher Nigerian output and concerns about Brexit. West Texas Intermediate dropped 2.1% to $48.81 per barrel and Brent crude dipped 1.6% to $49.77 per barrel at 1551 BST.

In the latest Brexit developments, former London mayor Boris Johnson said he would not run for prime minister, paving the way for contenders Theresa May, Michael Gove and Liam Fox. The new leader will be in place by 9 September when they decided whether to invoke Article 50, which begins the formal process of Britain’s exit from the EU.

“The lack of progress since last week’s vote is probably partially what has stabilised the markets for now but the longer this persists, the more uncertain the future is going to look,” said Craig Erlam, senior market analyst at Oanda.

“Until article 50 is triggered, there remains a chance, albeit small, that new negotiations and even another referendum could take place.”

In currency markets, the pound was trading up 0.03% at $1.3433. RBC Capital Markets said the shock to global risk appetite from last Friday’s UK vote has faded very quickly.

On the economic data front, US initial jobless claims were up by 10,000 to 268,000 last week from the previous week’s downwardly-revised 258,000, the Labor Department said. Economists had expected claims to push up to 267,000.

A measure of Chicago-area economic activity jumped in June. MNI Indicators said the Chicago purchasing managers’ index rose to 56.8 from 49.3, beating expectations for a reading of 51.0. A level above 50 signals expansion while a reading below that suggests a contraction.

On the corporate front, Darden Restaurants declined after reported fourth quarter sales that missed expectations.

Pier 1 Imports slumped after announcing late on Wednesday that it had swung to a loss in the first quarter.

ConAgra Foods slid after posting fourth quarter revenues that trailed analysts’ estimates.

Constellation Brands gained as it revealed first quarter earnings and sales that exceeded forecasts.