Stocks get some en­ergy as oil prices rise

News in­volv­ing Rus­sia, Sam­sung, Trump spark gains

Baltimore Sun - - NHL - By Mar­ley Jay

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.

ALEXEY DRUZHINYN/EPA

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