US stocks closed higher on Tuesday, adding to the previous session' s rally as rising oil prices boosted the energy sector, while US Treasury yields rose on speculation about a possible December Federal Reserve interest rate hike.

After a volatile morning, US stocks settled into positive territory in the afternoon. The Nasdaq 100 index .NDX of major companies closed at a record high, driven by technology stocks while the S & P 500 touched its highest since late July.

The Dow Jones industrial average' s gain was led by oil company
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Chevron (CVX.N), while rival Exxon Mobil (XOM.N) was one of the biggest drivers for the S & P 500.

While energy stocks have risen 22 percent since late August, the sector is still down 10 percent year to date.

" I think there has been a real desire on the part of some investors to take advantage of depressed valuations," said Eric Wiegand, senior portfolio manager with US Bank Wealth Management in New York.

But while investors piled into the beaten-down sector, Robert Pavlik, chief market strategist at Boston Private Wealth in New York, questioned whether it would continue to rise.

" You have to be careful with that trade because there does not seem to be a dramatic increase in (oil) demand," he said. " I can not see oil dramatically reversing to the upside so I' m participating in it but doing it cautiously. "

The Dow Jones industrial average .DJI rose 89.39 points, or 0.5 percent, to 17,918.15, the S & P 500 .SPX gained 5.74 points, or 0.27 percent, to 2,109.79 and the Nasdaq Composite .IXIC added 17.98 points, or 0.35 percent, to 5,145.13.

The three top US indexes had already risen around 1 percent or more on Monday.

US benchmark US10YT = RR and short-dated Treasury yields hit over six-week highs on continued expectations of a December Fed rate hike. Surging corporate issuance contributed to long-dated yields touching six-week highs.

Speculation about a December hike, the rising bond yields and generally in-line US economic data boosted the dollar. After falling on Monday, the dollar .DXY was up 0.3 percent against a basket of major currencies while the euro EUR = fell 0.5 percent against the dollar.

US manufacturing in October hit a 2-1 / 2-year low but a rise in new orders offered hope for a sector buffeted by a strong dollar and relentless spending cuts by energy companies

Crude oil prices rose almost 4 percent as a rally in US gasoline and diesel added support to oil markets already boosted by an industry strike in Brazil and force majeure for Libyan crude loadings. 

Brent LCOc1 settled up 3.6 percent or $ 1.75 at $ 50.54 a barrel, while US crude CLc1 settled up 3.8 percent or $ 1.76 at $ 47.90.

Gold XAU = was down for a fifth straight day at $ 1,117.56 an ounce, touching its lowest in just over a month, while copper CMCU3 gave back gains from earlier in the day and was roughly in line with where it ended the day before.

Europe' s FTSEurofirst .FTEU3 ended up 0.4 percent, after being dogged throughout the trading day by a slump in shares of Volkswagen and Standard Chartered.

 

 

Wall St. climbs, led by energy, healthcare Nasdaq 100 hits 15-year high

US stocks added to their recent run with gains across all sectors on Monday, led by increases in the beaten-down energy group and the acquisition-driven healthcare industry.

The gains on the first trading day of the month followed the best monthly performance of the major indexes in four years in October. The Nasdaq 100 .NDX on Monday closed at its highest level in more than 15 years.

Data on Monday showed US manufacturing activity in October sank to a 2-1 / 2-year low, but a rise in new orders offered encouragement. Elsewhere, factory activity in Germany beat economists' estimates, and manufacturing in Central and Eastern Europe kept up a robust pace in October.

" The fact that we have got sturdy numbers from outside the US accompanied by a relatively decent ... (US manufacturing) report, I think that cocktail was supportive of risk assets getting a boost," said Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia.

The Dow Jones industrial average .DJI rose 165.22 points, or 0.94 percent, to 17,828.76, the S & P 500 .SPX gained 24.69 points, or 1.19 percent, to 2,104.05 and the Nasdaq Composite .IXIC added 73.40 points, or 1.45 percent, to 5,127.15.

The S & P, which is up nearly 13 percent since hitting its lowest level for the year in August, broke through the 2,100 barrier, bringing it nearer to its all-time closing high of 2,130.82 in May.

" The upward trend that was put in place last week has continued to gain steam," said Michael James, managing director of equity trading at Wedbush Securities in Los Angeles. " I do not necessarily think there' s a specific catalyst for it today. Risk appetite has clearly increased. "

As the US earnings seasons winds down, investors are looking to economic data, including this Friday' s employment report, for clues as to whether the Federal Reserve will raise interest rates when it meets in December.

The S & P energy index .SPNY rose 2.4 percent. Oil majors Exxon (XOM.N) and Chevron (CVX.N) were two of the three biggest drivers of positive performance for the Dow after both companies posted better-than-expected results on Friday . Chevron gained 4.5 percent to $ 94.96 and Exxon finished up 3.1 percent at $ 85.28.

The S & P healthcare index .SPXHC increased 2 percent. Pfizer (PFE.N) rose 3.7 percent, and AbbVie (ABBV.N) jumped 6.4 percent, providing the biggest boost to the sector.

Dyax (DYAX.O) soared 28.4 percent to $ 35.35 after British drugmaker Shire (SHP.L) said it would buy the company for about $ 5.9 billion. The Nasdaq biotechnology index .NBI closed up 3.8 percent.

US-listed shares of Valeant (VRX.N) rose 7.1 percent at $ 100.47 after short-seller Citron Research said it would not be releasing new allegations against the Canadian drugmaker.

The S & P financial sector .SPSY gained 1.6 percent, led by increases from the big banks. Visa (VN) fell 3 percent to $ 75.22 after offering to buy its former subsidiary Visa Europe Ltd for as much as $ 23.3 billion. The stock was the biggest drag on the Dow and the S & P 500.

Hewlett-Packard started trading after its split. HP Inc (HPQ.N) jumped 13 percent to $ 13.83, while Hewlett Packard Enterprise (HPE.N) slipped 1.6 percent to $ 14.49.

Advancing issues outnumbered declining ones on the NYSE by 2,525 to 569, for a 4.44-to-1 ratio on the upside on the Nasdaq, 2,217 issues rose and 628 fell for a 3.53-to-1 ratio favoring advancers.

The S & P 500 posted 25 new 52-week highs and four new lows the Nasdaq recorded 76 new highs and 44 new lows.

 

November 2, 2015 : 8:14 AM

Asian stocks dipped early on Monday following lacklustre Chinese data out over the weekend, while the dollar remained on the defensive against the yen after the Bank of Japan' s decision to hold policy steady favoured the Japanese currency.

MSCI' s broadest index of Asia-Pacific shares outside Japan lost 0.1 percent, while Australian shares dipped 0.5 percent.

Activity in China' s manufacturing sector unexpectedly contracted in October for a third straight month, an official survey showed on Sunday, fuelling fears the economy may still be losing momentum in the fourth quarter despite a raft of stimulus measures.

Markets have another chance to gauge the health of the Chinese economy when a private survey of manufacturing activity is published at 0145 GMT.

The dollar stood unchanged at 120.55 yen after losing 0.4 percent on Friday, when the BOJ wrong-footed investors who had wagered that the Japanese central bank would ease policy.

Focus now falls on US data, including the all-important non-farm payrolls due on Friday, and how that could affect the Federal Reserve' s stance on interest rates.

The Fed did not hike rates this month but caused a stir by leaving the door open for a hike in December.

" Incoming US economic data bear significance for the December FOMC decision and could drive higher FX and rate volatility in the coming weeks," strategists at Barclays wrote.

" The October FOMC statement was somewhat more hawkish than our expectations, and with the assessment on global risk having been removed, we think there is a clear attempt by the FOMC to keep a December hike on the table."

The euro gained 0.2 percent to $ 1.1020, having risen against the greenback Friday on a soft US core personal consumption expenditure (PCE) index release.

The Australian dollar was down 0.1 percent at $ 0.7130 in wake of Sunday' s downbeat China data. The Aussie is often used as a proxy of China trades.

In commodities, crude oil prices slipped, unable to sustain gains made on Friday on the latest decline in the US oil rig count.

US output may be declining but global supplies of crude and refined oil products continue to grow, weighing down on the market.

US crude was down 0.8 percent at $ 46.22 a barrel.

 

 

Oil rises on U.S. rig count market also up on week and month

US stock indexes finished with their strongest monthly performances in four years on Friday, even as they dipped for the day amid a mixed bag of earnings reports.

For October, all three major indexes posted their biggest percentage increases since October 2011, with the S & P 500 rising 8.3 percent, led by energy and materials, while a measure of volatility fell.

On Friday, CVS Health (CVS.N) fell 4.8 percent to $ 98.78 after a disappointing profit forecast for 2016.

The S & P 500 energy index .SPNY was the best performing sector, rising 0.7 percent. Exxon (XOM.N) rose 0.6 percent and Chevron (CVX.N) 1.1 percent after better-than-expected results.

Investors will be looking at data over the next several weeks, including next Friday' s employment report, for clues about the economy' s health. The Fed signaled on Wednesday a rate hike in December was still possible.

" The market is being held a little bit hostage," said Jeff Buetow, chief investment officer at Innealta Capital in Austin. " It would be nice to have some clarity once and for all of what monetary policy is going to do over the foreseeable future . "

The Dow Jones industrial average .DJI fell 92.26 points, or 0.52 percent, to 17,663.54, the S & P 500 .SPX lost 10.05 points, or 0.48 percent, to 2,079.36 and the Nasdaq Composite .IXIC dropped 20.53 points, or 0.4 percent, to 5,053.75.

For the month, the Dow gained 8.5 percent, while the Nasdaq rose 9.4 percent.

In a signal of a return to calm in markets, the CBOE volatility index .VIX fell 38.5 percent in October -. Its largest monthly percentage decline on record " We' re not likely to see another month like this anytime soon," said Marshall Gause , chief executive of Geneva Fund Partners in Denver. " This month was a rebound off the lows."

For the week, the Dow inched up 0.1 percent, the S & P increased 0.2 percent, and the Nasdaq rose 0.4 percent. The S & P posted its fifth straight week of gains, its longest such streak this year.

The S & P healthcare sector index .SPXHC rose 3.1 percent for the week, the best weekly gain since March, spurred by strong pharmaceutical earnings.

Shares of drugmaker AbbVie (ABBV.N) jumped 10.1 percent Friday to $ 59.55, the biggest positive driver for the S & P 500 index, after better-than-expected profit and a strong long-term outlook.

Consumer staples .SPLRCS slipped 1.1 percent. US consumer spending barely rose in September and the University of Michigan' s index on consumer sentiment came in below expectations.

The S & P financial sector index .SPSY fell 1.4 percent, with Genworth Financial (GNW.N) tumbling 10.3 percent to $ 4.68 after results.

US-listed shares of Valeant Pharmaceuticals (VRX.N) dropped 15.9 percent to $ 93.77, its lowest since July 2013, after cutting all ties with specialty pharmacy Philidor.

LinkedIn (LNKD.N) shot up 11 percent to $ 240.87 while Expedia (EXPE.O) jumped 7.3 percent to $ 136.30 after results beat estimates.

NYSE advancing issues outnumbered declining ones 1,647 to 1,404, for a 1.17-to-1 ratio on the Nasdaq, 1,638 issues fell and 1,161 advanced, for a 1.41-to-1 ratio favoring decliners.

The S & P 500 posted 18 new 52-week highs and 4 lows the Nasdaq recorded 49 new highs and 78 lows.

About 7.4 billion shares changed hands on US exchanges, above the 7.1 billion average for the past 20 trading days, according to Thomson Reuters data.

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Oil prices rose on Friday, finishing higher for the week and month as well, after another decline in the US oil rig count indicated domestic crude production could fall in coming months.

Prices also got a boost from separate data showing US oil output in August fell to third lowest figure this year.

Brent, the global benchmark for oil, settled up 76 cents, or 1.6 percent, at $ 49.56 a barrel. It rose 3 percent on the week and 2 percent for October.

US crude futures rose by 53 cents, or 1.1 percent, to $ 46.56, gaining 3 percent on the week and 4 percent on the month.

Oil prices had trended higher since Wednesday' s 6 percent rally, sparked by a smaller-than-anticipated build in US crude and sharper-than-expected falls in gasoline and diesel stockpiles.

US oil drillers removed 16 rigs in the week ended Oct. 30, bringing the total rig count down to 578, the least since June 2010, oil services company Baker Hughes Inc said in its closely followed report.

The drop was a sign that low prices were continuing to keep drillers away from the well pad, signaling lower production over the next several months.

But while US output is declining, global supplies of crude and refined oil products continue to grow, testing storage capacity and hammering oil company results.

This is prompting oil bears to argue that price rallies such as Wednesday' s can not be sustained.

" Looking at the bigger picture, there is still lots of oil in the United States," PVM Oil Associates analyst Tamas Varga said. " We should see a softer market in the coming days."

Others are not so sure.

" Although providing fundamental rationale for a 6 percent single day advance remains challenging, we are conceding to a significant improvement in the short term chart picture and a need to lift pricing in order to attract fresh selling," said Jim Ritterbusch of Ritterbusch & Associates, an oil consultancy in Chicago.

A Reuters survey was supportive to the market, showing that Saudi Arabia and Iraq pumped less oil in October than African nations in OPEC, pushing the producer group' s output down from near record highs.

Chinese government data also showed the country was doubling crude oil import quotas for 2016.