Stocks up; en­ergy com­pa­nies, Apple climb

Daily Local News (West Chester, PA) - - BUSINESS - By Marley Jay AP Mar­kets Writer Marley Jay can be reached at http://twit­ter.com/Mar­leyJayAP His work can be found at http://bigstory.ap.org/jour­nal­ist/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 for Repub­li­can 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 oi pro­duc­tion. In late Septem­ber the na­tions of OPEC an­nounced a pre­lim­i­nary agree­ment to trim oil pro­duc­tion, but Rus­sia, a ma­jor en­ergy pro­ducer, 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. Exxon Mo­bil climbed $1.70, or 2 per­cent, to $88.44 and Devon En­ergy added $1.58, or 33.7 per­cent, to $44.39.

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 said it has changed its pro­duc­tion of the phones fol­low­ing re­ports that some of its re­place­ment phones are over­heat­ing and catch­ing fire, just as the orig­i­nal ver­sion of the phone did be­fore Sam­sung re­called it last month. Sam­sung did not con­firm or deny a re­port from a Korean news agency that it sus­pended pro­duc­tion of the Note 7 phone.

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. The stock is down 20 per­cent since late Au­gust.

Bris­tol-My­ers Squibb plunged again af­ter the com­pany re­ported more data from a study of its drug Op­divo in lung cancer pa­tients. It fell $5.62, or 10.1 per­cent, to $49.81. Ri­val Merck rose $1.13, or 1.8 per­cent, to $63.90 as in­vestors were pleased with re­sults from a study of its cancer treat­ment Keytruda. Bris­tol-My­ers stock has dropped 34 per­cent since the com­pany an­nounced ini­tial re­sults from that trial in early Au­gust, which has sent to al­most two-year lows. Merck is up 10 per­cent over the same time.

The Mex­i­can peso grew stronger fol­low­ing Trump’s calami­tous week­end. Trump has crit­i­cized Mex­ico and its trade agree­ments with the U.S., so the peso has be­come some­thing of an in­di­ca­tor of how in­vestors feel about the elec­tion. The cur­rency has tended to weaken when in­vestors feel Trump is do­ing bet­ter and gets stronger when in­vestors feel more con­fi­dent in Hil­lary Clin­ton’s chances. The U.S. buys about 80 per­cent of Mex­ico’s ex­ports, which gives it a big in­flu­ence on the Mex­i­can econ­omy.

Fol­low­ing the peso’s surge Mon­day, one U.S. dol­lar bought just 18.92 pe­sos, ver­sus the 19.26 pe­sos it bought on Fri­day. The peso has weak­ened sharply this year but is cur­rently the strong­est it’s been in about a month.

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. It fell 20 per­cent Thursday on re­ports that pos­si­ble buy­ers in­clud­ing Apple and Al­pha­bet had de­cided not to make of­fers. Twit­ter has been on a big run since late July on ru­mors the com­pany might be sold. The stock is now the low­est it’s been since early Au­gust.

Sales­force.com, which in­vestors be­lieve is a pos­si­ble buyer, rose $4.19, or 5.9 per­cent, to $75.10.

Man­u­fac­turer Dover fore­cast a smaller profit and a big­ger de­cline in rev­enue be­cause of weaker spend­ing in sev­eral in­dus­tries and pro­duc­tion prob­lems in its re­tail re­frig­er­a­tion unit. The com­pany also said its pur­chase of Bri­tish com­pany Wayne Fu­el­ing Sys­tems won’t close un­til early next year be­cause reg­u­la­tors in the United King­dom are still re­view­ing the deal. The stock gave up $5.55, or 7.7 per­cent, to $66.69.

Gold rose $8.50 to $1,260.40 an ounce. Sil­ver added 28 cents to $17.66 an ounce. Cop­per picked up 3 cents to $2.20 a pound.

In other en­ergy trad­ing, whole­sale gaso­line rose 2 cents to $1.50 a gal­lon. Heat­ing oil rose 3 cents to $1.61 a gal­lon. Nat­u­ral gas gained 8 cents, or 2.6 per­cent, to $3.28 per 1,000 cu­bic feet.

Germany’s DAX rose 1.3 per­cent and the CAC-40 in France was 1.1 per­cent higher. The FTSE 100 in London rose 0.8 per­cent. The Kospi in South Korea rose 0.1 per­cent. Ja­pan’s mar­kets were closed for a hol­i­day.

The dol­lar rose to 103.68 yen from 103.06 yen Fri­day. The euro fell to $1.1139 from $1.1182, and the Bri­tish pound fell to $1.2351 from $1.2435. Bond trad­ing was closed for the Colum­bus Day hol­i­day.

MARK LENNIHAN — THE AS­SO­CI­ATED PRESS

U.S. stocks rose Mon­day as en­ergy com­pa­nies climbed with the price of oil. Apple is lead­ing tech­nol­ogy stocks higher as Sam­sung’s Galaxy Note 7 is be­set by new prob­lems.

Newspapers in English

Newspapers from USA

© PressReader. All rights reserved.