U.S. stocks climb; oil prices surge

Technology companies and banks helped power U.S. stocks to solid gains Wednesday, improving on the market’s flat finish the day before.

Energy stocks led the gainers as the price of crude oil climbed back above $70 a barrel the day after the U.S. moved to withdraw from a nuclear accord with Iran. Industrial and materials companies rose, outweighing losses in safer-play sectors such as utilities.

“The areas of strength that you’re seeing today are encouraging,” said Willie Delwiche, investment strategist at Baird. “Energy, financials, materials and industrials. Those are more cyclical areas of the market, and that speaks to economic strength and a risk appetite on the part of investors.”

The Standard & Poor’s 500 index rose 25.87 points, or 1%, to 2,697.79, entering positive territory for the year. The Dow Jones industrial average posted its fifth gain in a row, climbing 182.33 points, or 0.7%, to 24,542.54.

The Nasdaq climbed 73 points, or 1%, to 7,339.91. The Russell 2000 index of smaller-company stocks ticked up 9.66 points, or 0.6%, to 1,596.05.

Electronic Arts led a tech-sector rally, climbing 5.7% to $131.01 after the video game maker’s quarterly results beat forecasts.

TripAdvisor soared 22.8% to $47.62 after the online travel booking company reported earnings that were much higher than analysts expected. and raised its annual forecast.

Energy-sector stocks racked up the biggest gain as crude oil prices rebounded. Occidental Petroleum shares rose 5.4% to $82.40.

Benchmark U.S. crude oil jumped 3% to $71.14 a barrel — its highest level in more than three years. Brent crude, used to price international oils, leaped 3.2% to $77.21 a barrel in London.

Bond prices fell. The yield on the 10-year Treasury rose to 3% from 2.98%. The rise in yields pushed up interest rates, which enables banks to make more money from loans. Financial stocks rose. Bank of America shares advanced 2.6% to $30.72.

Home builders retreated as interest rates rose and the Mortgage Bankers Assn. said mortgage applications fell. KB Home shares sank 5.1% to $26.15.

Monster Beverage slid 7.5% to $49.11 after the energy drink maker posted disappointing sales and said its profit margins shrank.

Papa John’s International slid 3.7% to $56.55 after the pizza chain’s results fell short of analyst estimates.

Walt Disney’s betterthan-expected results failed to impress traders, who took a dim view of the entertainment company’s struggling ESPN network. Disney shares fell 1.8% to $99.97.

Walmart slid 3.1% to $83.06 after the retailer agreed to buy a 77% stake in India’s Flipkart in a $16-billion deal. The move is Walmart’s biggest acquisition.

The dollar rose to 109.72 yen from 109.02. The euro rose to $1.1861 from $1.1858.

Gold fell 70 cents to $1,313 an ounce. Silver rose 7 cents to $16.54 an ounce. Copper was flat at $3.06 a pound.