Most stocks rise as earnings season approaches
Most U.S. stocks rose Wednesday, but indexes petered out to a mixed finish as momentum weakened following an encouraging start to what’s expected to be a thunderous earnings reporting season.
The S&P 500 fell 16.93 points, or 0.4%, to 4,124.66, a day after returning to an all-time high. It flipped between small gains and losses several times through the day.
The Dow Jones Industrial Average rose 53.62 points, or 0.2%, to 33,730.89 after rising above its record set last week earlier in the day. The Nasdaq composite lost an early gain to drop 138.26, or 1%, to 13,857.84.
The market was held back by drops for several heavyweight tech stocks, including Apple and Amazon, but the majority of stocks within the S&P 500 rose. Smaller companies also rallied amid growing optimism as COVID-19 vaccines roll out and businesses reopen. The Russell 2000 index of smallcap stocks climbed 18.79, or 0.8%, to 2,247.72.
Energy stocks were also among the market’s strongest on expectations that a resurgent economy will burn more petroleum products. The International Energy Agency raised its forecast for oil demand this year, up by 230,000 barrels per day to 96.7 million. A separate U.S. government report also showed that the amount of oil supplies in inventories fell sharply last week.
That helped benchmark U.S. crude oil rise $2.97 to settle at $63.15 per barrel. Brent crude, the international standard, climbed $2.91 to $66.58 a barrel. Within the S&P 500, Diamondback Energy was one of the top-performing stocks with a gain of 6%. Occidental Petroleum rose 5.2%.
Much of the market’s focus in coming weeks will be on earnings season, as companies line up to report first-quarter profits.