Stocks mixed, but oil’s rise helps energy sector climb
U.S. stock indexes closed mostly higher Wednesday after a sharp increase in crude oil prices helped drive marketleading gains for energy companies.
Banks and other financial stocks declined the most as bond yields headed lower, which translates into lower interest rates on loans and lower profits for banks.
The Dow Jones industrial average ended in the red, while the Standard & Poor’s 500 index and Nasdaq composite eked out modest gains.
“After yesterday’s bounce back, you’re seeing a little sideways action today,” said Jeff Zipper, managing director at the Private Client Reserve of U.S. Bank.
A day after Wall Street rallied after news that U.S. consumer confidence reached its highest level since 2000, the market received another dose of encouraging economic data Wednesday.
The National Association of Realtors said more people signed contracts to buy U.S. homes last month as warm weather and rising confidence appeared to encourage consumers to look for houses.
The NAR’s pending home sales index climbed 5.5 percent in February to 112.3, its highest point since April and its secondhighest point since 2006.
Energy prices closed sharply higher as traders weighed remarks from Iran’s oil minister, Bijan Zanganeh, who said the recent deal to cut production will probably be extended, and that fighting in Libya is affecting its oil industry.