MARKET SNAPSHOT: U.S. Stocks Gain On Energy, But Intel's Outlook Drags

By Barbara Kollmeyer, MarketWatch , Ryan Vlastelica

Intel falls, but Morgan Stanley is the latest financial to top forecasts

U.S. stocks edged higher on Wednesday, boosted by a rally in the energy sector and the latest financial stock to top expectations in its earnings, though weak housing data and a disappointing tech outlook limited the day's advance.

Crude prices (http://www.marketwatch.com/story/oil-prices-rise-on-signs-crude-inventories-likely-fell-last-week-2016-10-19)rose 2.6% (http://www.marketwatch.com/story/oil-prices-rise-on-signs-crude-inventories-likely-fell-last-week-2016-10-19) after Saudi Arabia's oil minister, Khalid A. Al-Falih, said improving fundamentals and market rebalancing would continue to aid the recovery in the commodity. The Saudi minister said many countries, including those that aren't a member of the Organization of the Petroleum Exporting Countries, are willing to join a potential deal to cut global oil output (http://www.marketwatch.com/story/saudi-oil-minister-many-non-opec-countries-willing-to-join-output-deal-2016-10-19), which is seen as necessary to addressing oversupply in the market. His comments helped pushed crude futures to their highest level since July, which delivered a boost to energy companies. The S&P energy sector rose 1.9%, by far the biggest gainer on the day.

Chevron Corp.(CVX) rose 1.8% to $103.60, the biggest riser among Dow components.

On the downside, Intel Corp. (INTC) was worst performer on both the Dow and the S&P 500 after it reported a disappointing revenue outlook (http://www.marketwatch.com/story/intels-earnings-up-but-outlook-disappoints-2016-10-18), even as its third-quarter earnings rose almost 9%. The stock sank 5.7% to $35.58 in its biggest one-day drop since January.

Read:The Intel money pit: Renovations cost more, no results in sight (http://www.marketwatch.com/story/the-intel-money-pit-renovations-cost-more-no-results-in-sight-2016-10-18)

The Dow Jones Industrial Average gained 67 points, or 0.4%, to 18,230. The S&P 500 index rose 5 points, or 0.3%, to 2,145. The tech-heavy Nasdaq Composite Index , however, was trading flat at 5,242.

Major stock-market indexes have lately mostly been trading within a narrow range ahead of the U.S. presidential election between Democratic nominee Hillary Clinton and Republican candidate Donald Trump. Currently, the S&P 500 is about 2.2% below its intraday record.

See also: The stock market has been losing its grip on rallies at 3 distinct times during the day (http://www.marketwatch.com/story/the-stock-market-has-been-losing-its-grip-on-rallies-at-3-key-times-during-the-day-2016-10-18)

"We're not in a bad position, but we haven't made much progress since July, and I don't see that changing with the big election we have coming up, which has a lot of people uneasy," said Randy Frederick, managing director of trading and derivatives for Charles Schwab in Austin, Texas.

In what could be a focus for some traders, the third and final presidential debate will take place Wednesday evening.

Read: Wall Street wants Donald Trump to be beaten, but not crushed (http://www.marketwatch.com/story/this-is-wall-streets-new-election-black-swan-2016-10-18)

(http://www.marketwatch.com/story/this-is-wall-streets-new-election-black-swan-2016-10-18)Also read:Irish bookie already paying out on Hillary Clinton victory bets (http://www.marketwatch.com/story/irish-bookie-already-paying-out-on-hillary-clinton-victory-bets-2016-10-18)

Morgan Stanley (MS) rose 0.7% to $32.52 after it reported a profit that beat analyst forecasts (http://www.marketwatch.com/story/morgan-stanley-profit-boosted-by-trading-revenue-2016-10-19). The stock was the latest in a string of financials--including Goldman Sachs Group Inc.(GS) and J.P. Morgan Chase & Co(JPM)--that topped consensus expectations and boosted equities (http://www.marketwatch.com/story/wall-street-stocks-point-higher-as-goldman-results-inflation-data-loom-2016-10-18). The S&P financial sector rose 0.5%.

"Not only have these financials beat, but they've beat pretty solidly, which has led to some upside," Frederick said.

Among other earnings, Reynolds American Inc.(RAI) sank 4.6% after earnings and revenue fell short (http://www.marketwatch.com/story/reynolds-american-misses-third-quarter-earnings-revenue-expectations-2016-10-19). On the upside, Halliburton Co.(HAL)(HAL) rose 3.3% to $48.65 on its results.

In the latest economic data, housing stars fell 9% in August (http://www.marketwatch.com/story/housing-starts-tumble-9-as-sturdy-recovery-remains-elusive-2016-10-19), reaching the slowest pace since March 2015. The data was a setback for the housing market, though the starts were offset by a rise in monthly building permits.

Wednesday also marks the 29th anniversary of Black Monday, when on Oct. 19, 1987, stock markets crashed around the world.

Read:Chart watcher: stop comparing 2016 stock market to 1987 (http://www.marketwatch.com/story/chart-watcher-stop-comparing-2016-stock-market-to-1987-2016-10-18)

(https://twitter.com/sarasjolin/status/788656012299468800)

Among other markets, gold rose 0.6% while the ICE dollar index was flat.

Read:Why gold will rise no matter who becomes the next president (http://www.marketwatch.com/story/why-gold-will-rise-no-matter-who-becomes-the-next-us-president-2016-10-18)

(http://www.marketwatch.com/story/dollar-slips-though-move-reduced-after-better-than-expected-china-data-2016-10-19)The Stoxx Europe 600 index (http://www.marketwatch.com/story/european-stocks-slip-but-energy-shares-track-gains-in-oil-prices-2016-10-19) logged moderate gains, while Asian stocks (http://www.marketwatch.com/story/asian-markets-rise-as-china-reports-healthy-growth-2016-10-18) finished mixed. The Shanghai Composite Index closed flat after data showed better-than-expected growth (http://www.marketwatch.com/story/chinas-economy-grows-steadily-in-q3-2016-10-18) in China, but slower industrial production.

(END) Dow Jones Newswires

October 19, 2016 11:23 ET (15:23 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.