Stocks get some energy as oil prices rise
News involving Russia, Samsung, Trump spark gains
NEW YORK — U.S. stocks rose Monday as crude oil jumped to its highest price in more than a year and energy companies climbed with it. Investors also reacted to the latest twists in the presidential race.
Oil rose after Russia’s government said it supports efforts by OPEC to cut oil production. Apple reached its highest price of the year and led tech stocks higher after new reports of fires affecting Samsung’s Galaxy Note 7 phone, which competes with Apple’s iPhone.
Early in the day, stocks were on track for far larger gains.
Steve Chiavarone, an associated portfolio manager for Federated Investors, said a tumultuous weekend Russia’s Vladimir Putin, left, and Igor Sechin of the nation’s top oil producer, Rosneft, meet in Istanbul. Putin said Monday his country supports OPEC’s efforts to cut oil production. for Republican presidential candidate Donald Trump contributed to the market’s gains. He said investors mostly expect Democratic candidate Hillary Clinton to win, and they are concerned about the effect Trump’s trade proposals would have on the market and the economy.
“What you’re seeing in the market is a cheering of the status quo,” he said. In his view, that’s because investors understand Clinton’s views and what her administration might look like even though they may disagree with her on issues like tax policy.
The Dow Jones industrial average picked up 88.55 points, or 0.4 percent, to 18,329.04. The index rose as much as 159 points earlier. The Standard & Poor’s 500 index rose 9.92 points, or 0.5 percent, to 2,163.66. The Nasdaq composite added 36.27 points, or 0.7 percent, to 5,328.67.
Russian President Vladimir Putin said Monday that Russia supports OPEC’s efforts to cut oil production. In late September, the nations of OPEC announced a preliminary agreement to trim oil production, but Russia isn’t a member of OPEC.
Benchmark U.S. crude rose $1.54, or 3.1 percent, to $51.35 a barrel in New York. That was its highest closing price since July 2015. Brent crude, used to price international oils, gained $1.21, or 2.3 percent, to $53.14 a barrel in London. ExxonMobil climbed $1.70, or 2 percent, to $88.44.
Apple climbed $1.99, or 1.7 percent, to $116.05 as investors hope it will be able to sell more iPhones as competitor Samsung faced new problems with its Galaxy Note 7. Samsung says it’s halting sales of the Galaxy Note 7 after a spate of fires involving new devices that were supposed to be safe replacements for recalled models.
Drugmaker Mylan gained $2.93, or 8.2 percent, to $38.87. On Friday, the company agreed to pay $465 million to settle allegations it overcharged the Medicaid program for its EpiPen allergy shot.
Legislators and federal health authorities had said Mylan wrongly classified EpiPen as a generic drug instead of a brand-name one, which meant Mylan paid lower rebates to federal and state Medicaid programs.
Meanwhile, Twitter continued to fall as investors grew less optimistic that the company will be sold. Twitter sank $2.29, or 11.5 percent, to $17.56.