By Anora Mahmudova and Victor Reklaitis, MarketWatch

Freeport McMoRan rallies for seventh consecutive session

U.S. stocks came off session highs but were still trading in positive territory Wednesday, closely tracking volatile oil prices.

A near-2% jump in oil futures boosted energy-related shares in early trade, though, by late morning crude prices gave up more than half of those gains.

Wednesday's advance on Wall Street follows a bullish mood in global markets, led partially by commodity-related stocks and the materials sector.

Investors also focused on earnings results from companies such as Constellation Brands Inc. (STZ) and Monsanto Co.(MON).

"There is a general recognition that the Federal Reserve will stay out of the of way of risk taking, by not hiking the rates just yet. So, we are seeing investors going back into riskier assets," said Jack Ablin, chief investment officer at BMO Private Bank.

The Dow Jones Industrial Average jumped 62 points, or 0.2%, to 16,852.

The S&P 500 gained 7 points, or 0.4%, to 1,986, as six of its 10 main sectors rose. The energy sector, that has been battered over the past year, was up 0.6%. The S&P is a few points away from so-called resistance level of 2000, breaking of which may indicate a bullish trend.

Meanwhile, the Nasdaq Composite gave up gains and was flat at 4,749.

On Tuesday, the S&P 500 closed 0.4% lower at 1,979.92 (http://www.marketwatch.com/story/us-stock-futures-slip-after-rally-as-earnings-season-looms-2015-10-06), snapping a five-day winning streak, while the Dow was up less than 0.1%.

Investors "need the S&P 500 to make a run and a break through 2,000," and that would energize other markets, said Scott Schuberg, CEO of Rivkin Securities in Australia, in a note late Tuesday. The U.S. stock benchmark is down 3.1% for the year.

Other markets: November West Texas Intermediate crude rose as high 2% early Wednesday (http://www.marketwatch.com/story/oil-prices-extend-gains-on-lower-us-production-2015-10-07) but was giving up gains, trading 0.7% higher. That built on Tuesday's 4.9% gain, which came amid signs of cuts to oil investments and lower crude supplies.

Energy shares led the way higher for European and Asian markets (http://www.marketwatch.com/story/asin-shares-battle-for-black-after-boj-keeps-monetary-policy-unchanged-2015-10-07) early Wednesday. Miners also fared well in Europe after an upbeat Morgan Stanley note (http://www.marketwatch.com/story/european-stocks-set-for-longest-winning-run-since-august-2015-10-07). Trading remains closed for a holiday in Shanghai, and Japan's central bank kept its monetary policy unchanged (http://www.marketwatch.com/story/bank-of-japan-stands-pat-on-policy-despite-economic-troubles-2015-10-07).

Gold and the dollar were little changed.

Stocks to watch: Constellation (STZ) shares rose 1.8% after adjusted earnings topped expectations.

Monsanto Co. (MON) shares fell 2%, as the biotech seed company reported a quarterly loss that was wider than expected (http://www.marketwatch.com/story/monsanto-loss-widens-to-cut-2600-jobs-2015-10-07).

Yum! Brands (YUM) shares plunged 19% for the biggest drop among S&P 500 components after the parent company for KFC, Pizza Hut and Taco Bell late Tuesday cut its earnings outlook (http://www.marketwatch.com/story/yum-brands-cuts-outlook-on-china-woes-2015-10-06-164855228) for the year, citing a slower-than-expected recovery in China and lingering currency issues.

Miner Freeport-McMoRan Inc. (FCX) was among the S&P's premarket advancers, rallying 11%, continuing its six-day winning streak. Since Sep 29, the stock gained 43%, however it is still down more than 45% since the start of the year.

Shares in beer giants Anheuser-Busch InBev NV (ABI.BT)(ABI.BT) and SABMiller PLC (SAB.JO) (SAB.JO) traded higher after AB InBev made a fresh bid for the producer of Miller Lite.

U.S. economic news: There are no top-tier U.S. economic reports due Wednesday, and no Federal Reserve speeches expected. Minutes from the last Fed meeting are slated to get released Thursday, along with weekly jobless claims.

 

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(END) Dow Jones Newswires

October 07, 2015 10:53 ET (14:53 GMT)

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