MARKET SNAPSHOT: Stocks Close Slightly Higher As Jump In Oil Prices Boosts Energy Shares

By Ellie Ismailidou and Carla Mozee, MarketWatch

U.S. airliners and online-travel brands take a hit after Turkey downs Russian jet

U.S. stocks closed slightly higher Tuesday, buoyed by a jump in oil prices after Turkey's downing of a Russian warplane raised concerns over the possibility of disruptions to energy output in the region.

Gains by both the Dow industrials and the S&P 500 were concentrated in the energy and materials sectors, as a 2.7% jump in crude prices , the largest one-day gain in three weeks (http://www.marketwatch.com/story/oil-prices-rise-as-investors-go-bargain-hunting-2015-11-24), led to a 2.2% jump in energy shares, which helped lift broader markets.

The energy sector was the best performer on the S&P 500, followed by materials and health care, and led by a 6.8% rise in the shares of Chesapeake Energy Corporation (CHK), a 5.5% jump in the shares of Marathon Oil Corporation (MRO) and a 3.8% increase in those of Murphy Oil Corporation (MUR)

The S&P 500 ended the session up 2.55 points, or 0.1%, at 2,089.14. The Dow Jones Industrial Average rose 19.51 points, or 0.1%, to settle at 17,812.19, and the Nasdaq Composite closed up 0.33 point, or less than 0.1%, at 5,102.81.

Earlier in the day, all indexes were in the red, as investors took in a flurry of mixed U.S. economic data amid fresh global tensions after Turkey shot down a Russian warplane near the Syrian border (http://www.marketwatch.com/story/turkey-shoots-down-jet-fighter-near-syrian-border-2015-11-24).

"There was a knee-jerk reaction" in the markets following the news, said Mike van Dulken, head of research at Accendo Markets.

Travel-related companies took a hit, with shares of United Continental Holdings, Inc. (UAL) falling 3%, Southwest Airlines Co. (LUV) dropping 2.6% and Delta Air Lines, Inc. (DAL) dropping 3%. Shares of global online travel company Expedia, Inc. (EXPE) lost 2.9% while Priceline Group Inc. (PCLN) shares fell 1.9%.

President Barack Obama and French President François Hollande held a joint news conference around midday to discuss the response to the Paris terror attacks.

The joint statement "alleviated in part any lingering concerns regarding the West's reaction to terrorist events" which, along with the jump in oil prices in a week otherwise marked by low trading volumes, helped push the market higher, said Michael Arone, chief investment strategist at State Street Global Advisors.

Volume will likely become more subdued as the market heads toward Thanksgiving Day on Thursday. Trading will closed for the holiday and reopen for a half-day on Friday.

Read: When do markets close around Thanksgiving? (http://www.marketwatch.com/story/when-do-markets-close-around-thanksgiving-2015-11-23)

Earlier on Tuesday morning, the U.S. government said the U.S. economy grew at a somewhat faster 2.1% pace in the third quarter (http://www.marketwatch.com/story/us-third-quarter-gdp-growth-raised-to-21-2015-11-24)instead of the initial reading of 1.5%, mainly due to a jump in the value of business inventories.

But consumer spending, the main engine of U.S. economic growth, grew below expectations (http://www.marketwatch.com/story/third-quarter-gdp-upped-to-21-from-15-2015-11-24), while inflation as measured by the personal consumption expenditure index increased at a 1.3% annual clip, well below the Federal Reserve's 2% target. Meanwhile, consumer confidence fell (https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwj4g87Q4qnJAhVBURoKHYRxCHkQqQIIHTAA&url=http%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fconsumer-confidence-falls-to-lowest-level-in-14-months-2015-11-24&usg=AFQjCNFKuGP_gqtQiRKLQTzPdA48XVTcTA&sig2=umurisp4pFXNf0ShhnXlfA&bvm=bv.108194040,d.dmo)in November to the lowest level in more than a year.

Tuesday's data were largely priced into the market and confirmed that "the U.S. economy is continuing to grow at a moderate pace that could support an interest-rate hike," said Chris Faulkner-MacDonagh, market strategist at Standard Life Investments.

Other markets: European stocks posted a second day of losses after the Turkish downing of the jet, with Russia's Micex index losing 3.1%, its biggest decline since March 10, according to FactSet data. Oil prices gained in the aftermath (http://www.marketwatch.com/story/oil-prices-rise-as-investors-go-bargain-hunting-2015-11-24), up 2.7%, to settle at $42.87 a barrel.

In Asia, Australian stocks (http://www.marketwatch.com/story/asian-stocks-under-pressure-from-weak-commodities-prices-2015-11-24) stood out with a 1% loss, as a slide in commodity prices put pressure on the resources-heavy market.

Gold prices found some strength, rebounding somewhat from a nearly six-year low. The U.S. dollar traded down 0.2% against major rivals.

Data: In other U.S. data, home prices picked up speed in September (http://www.marketwatch.com/story/home-price-gains-accelerate-in-september-spcase-shiller-says-2015-11-24), according to the closely watched S&P/Case-Shiller index.

Meanwhile, the nation's trade deficit also widened in the third quarter, the U.S. government said Tuesday, as imports were revised up but exports were weaker than previously reported.

Stocks to watch: PMC-Sierra Inc. (PMCS) shares dropped 2.2% after the chip company agreed to be purchased by Microsemi Corp (http://www.marketwatch.com/story/microsemi-agrees-to-buy-pmc-sierra-in-25-billion-cash-and-stock-deal-2015-11-24).(MSCC) in a cash-and-stock deal valued at about $2.5 billion. Meanwhile, Microsemi's shares fell nearly 6.5%.

Boulder Brands Inc. (BDBD) shares gained 8.5% after the maker of Smart Balance butter spreads agreed to be acquired by Pinnacle Foods Inc. (PF) for $975 million, including debt.

Shares of Signet Jewelers Limited (SIG) closed down 4.1% after the Bermuda-based company's third-quarter results missed expectations (http://www.marketwatch.com/story/signet-jewelers-misses-expectations-in-q3-2015-11-24). Meanwhile, Tiffany & Co. (TIF) shares gained 4.2 after the open, reversing a premarket drop after the high-end jeweler's quarterly profit and sales fell, (http://www.marketwatch.com/story/tiffany-profit-and-sales-fall-as-strong-dollar-weighs-2015-11-24) weighed by strength in the U.S. dollar.

Campbell Soup Co. (CPB) climbed 3% after the largest U.S. soup company by sales elevated its full-year profit outlook (http://www.marketwatch.com/story/campbell-soup-lifts-outlook-but-sales-slow-2015-11-24), as deeper cost cuts help it offset slowing sales.

Chico's FAS Inc. (CHS) closed down 0.3%, after falling earlier as much as 3.3% following news that the company's board approved a new share buyback of up to $300 million (http://www.marketwatch.com/story/chicos-to-buy-back-up-to-300-million-of-shares-raises-quarterly-dividend-33-2015-11-24). The apparel retailer also raised its quarterly dividend 3.3%.

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(END) Dow Jones Newswires

November 24, 2015 16:41 ET (21:41 GMT)

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