U.S. Stocks Edge Higher

By Riva Gold and Akane Otani 

U.S. stocks climbed higher Tuesday, led by shares of health-care companies.

The Dow Jones Industrial Average added 34 points, or 0.2%, to 19131. The S&P 500 rose 0.3%, and the Nasdaq Composite gained 0.5%.

Health-care stocks rallied, helping offset losses in the energy sector, which were dragged lower Tuesday by falling oil prices. The S&P 500 health-care sector added 1%, with UnitedHealth Group, AbbVie and Alexion Pharmaceuticals leading gains.

Biotech companies rallied, too, lifting the tech-heavy Nasdaq higher. The Nasdaq Biotechnology Index rose 0.7%.

Meanwhile, energy shares in the S&P 500 fell 1.3% and U.S. crude oil fell 4% to $45.19 a barrel after Indonesia's oil minister said the country hadn't decided whether to join the proposed production cuts.

Oil prices have been volatile in recent weeks, as investors and analysts have sought clues as to whether the Organization of the Petroleum Exporting Countries will be able to hammer out a deal Wednesday to cut output. Prices have climbed as high as $48 a barrel as investors grew optimistic about an OPEC deal and retreated to closer to $43 a barrel when those hopes have wavered.

"Oil prices are moving on [ministers'] comments now more than anything else until a decision comes out," said Brian Youngberg, an energy analyst at Edward Jones. "We still think oil prices will gradually recover in the next year or two, whether OPEC does anything or not, but an OPEC agreement would push it forward," he said.

The dollar was little changed.

"For now, markets are running on hope and promise," said Graham McDevitt, portfolio manager at Macquarie Investment Management.

"The dollar and interest rates move in tandem with each other on expectations that in six months' time and beyond, U.S. growth will be stronger, and that will deliver a better environment for the U.S. economy and probably higher U.S. interest rates."

Longer term, however, President-elect Donald Trump has also mentioned trade restrictions and changes to immigration in his platform, which could crimp growth in the future, while it remains to be seen which policies will actually be implemented, Mr. McDevitt added.

In Europe, banks were among the biggest gainers as Italian lenders started to recover from a spate of losses ahead of Sunday's constitutional referendum. Many investors have been concerned that the vote could mark the next victory for a global antiestablishment movement that has rattled markets so far this year.

Italy's FTSE MIB index gained 1.8%, but remains down roughly 4% this month and roughly 23% from the start of the year.

Investors have grown jittery that a "no" vote could lead to a period of political instability and push back plans to raise capital for troubled lenders.

"Italy is not just a key member of the European Union, it's also part of the eurozone," said Brian Jacobsen, chief portfolio strategist at Wells Fargo Funds. If there is widespread political and market turmoil following the referendum, "it raises a lot of concerns about what it means for the health of the financial system in the eurozone," he said.

Earlier, Asian markets mostly retreated. Japan's Nikkei Stock Average fell 0.3%, led lower by financials and electronics, while stocks in Hong Kong inched down 0.4%. The Shanghai Composite eked out small gains to reach its highest closing value since January.

Write to Riva Gold at [e-mail] and Akane Otani at [e-mail]

(END) Dow Jones Newswires

November 29, 2016 13:26 ET (18:26 GMT)

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