Oil jumps, fu­el­ing record high for stocks

In­vestors hope OPEC cuts out­put to boost prices

Baltimore Sun - - COLLEGE FOOTBALL - By Mar­ley Jay

NEWYORK — A jump in oil prices helped pull U.S. stocks to record highs Mon­day as in­vestors con­tinue to hope for a cut in oil pro­duc­tion that could help prices go higher. The start of the week once again brought sev­eral cor­po­rate deals, with com­pa­nies in the en­ergy and tech­nol­ogy in­dus­tries mak­ing big moves.

The price of oil rose about 4 per­cent as in­vestors hope the coun­tries in OPEC, which col­lec­tively pro­duce more than a third of the world’s oil, will soon fi­nal­ize a deal that would lower oil pro­duc­tion and help sup­port prices. The gains were wide­spread, with tech­nol­ogy, ba­sic ma­te­ri­als and util­ity com­pa­nies all mov­ing higher.

Stocks reached all-time Trader Gre­gory Rowe, left, works on the floor of the NYSE. Stocks closed at record highs. highs over the sum­mer and have built on those gains since the elec­tion. On Mon­day the Dow Jones in­dus­trial av­er­age, Stan­dard & Poor’s 500, and Nas­daq com­pos­ite all set records. So did the Rus­sell 2000, an in­dex of smaller com­pa­nies, and the S&P’s small- and mid-size com­pany in­dexes. The last time all those in­dexes set records on the same day was Dec. 31, 1999, ac­cord­ing to Ryan Det­rick, se­nior mar­ket strate­gist for LPL Fi­nan­cial.

The Dow rose 88.76 points, or 0.5 per­cent, to 18,956.69. The S&P 500 climbed 16.28 points, or 0.7 per­cent, to 2,198.18. The Nas­daq com­pos­ite jumped 47.35 points, or 0.9 per­cent, to 5,368.86.

Bench­mark U.S. crude oil rose to its high­est price this month. It gained $1.80, or 3.9 per­cent, to $47.49 a bar­rel while Brent crude, the in­ter­na­tional stan­dard, rose $2.04, or 4.4 per­cent, to $48.90 a bar­rel in London. That led to gains for en­ergy com­pa­nies. Marathon Oil added 86 cents, or 5.5 per­cent, to $16.48 and Exxon Mo­bil added $1.21, or 1.4 per­cent, to $86.49.

OPEC rep­re­sen­ta­tives will meet in Vi­enna on Nov. 30. They have agreed to pre­lim­i­nary terms of a deal that will trim oil pro­duc­tion, but the de­tails re­main to be de­ter­mined. Quincy Krosby, mar­ket strate­gist at Pru­den­tial Fi­nan­cial, said in­vestors are en­cour­aged by the ef­fort, but she doesn’t think a deal, if one hap­pens, will have much ef­fect on oil prices.

“There’s noth­ing to sug­gest the agree­ment’s go­ing to hold,” she said. “When all is said and done, sup­ply and de­mand will ul­ti­mately dic­tate the price.”

Small-com­pany stocks have surged since the elec­tion. The Rus­sell 2000 has risen for 12 days in a row.

Tech­nol­ogy stocks also made sub­stan­tial gains. They have lagged the mar­ket since the elec­tion af­ter very strong per­for­mance over the sum­mer. Face­book rose $4.75, or 4.1 per­cent, to $121.77 while on­line pay­ments com­pany Pay­Pal ad­vanced 55 cents, or 1.4 per­cent, to $40.63 and Ap­ple picked up $1.69, or 1.5 per­cent, to $111.75.

Iden­tity theft and fraud protection com­pany LifeLock jumped $3.06, or 14.7 per­cent, to $23.81 af­ter se­cu­rity soft­ware maker Sy­man­tec agreed to buy the com­pany for $2.3 bil­lion. The deal values LifeLock at $24 a share. Sy­man­tec picked up 77 cents, or 3.2 per­cent, to $24.52, a sign in­vestors ap­prove of the pur­chase.

RICHARD DREW/AP

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