MARKET SNAPSHOT: U.S. Stocks Retreat From Session Highs, But Still Posting Gains
07 October 2015 - 4:08PM
Dow Jones News
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.
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 07, 2015 10:53 ET (14:53 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.