Stocks mostly higher as oil surges

U.S. stock indexes closed mostly higher Wednesday after a sharp increase in crudeoil prices helped drive market-leading gains for energy companies.

The Standard & Poor’s 500 index rose 2.56 points, or 0.1 percent, to 2,361.13. The Dow Jones industrial average fell 42.18 points, or 0.2 percent, to 20,659.32. The Nasdaq composite index gained 22.41 points, or 0.4 percent, to 5,897.55. Two stocks rose for every one that fell on the New York Stock Exchange.

Bond prices rose. The 10-year Treasury yield fell to 2.39 percent from 2.42 percent.

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.

“After yesterday’s bounceback, 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 on news that U.S. consumer confidence reached its highest level since 2000, the market got 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.

Investors are hoping that Congress and the White House will enact tax cuts and other business-friendly policy proposals promised by President Donald Trump during his campaign.

Those expectations helped lift the market in the weeks after the election in November. But some of that investor optimism dimmed in recent weeks after the Trump administration’s bid to pass a bill intended to begin repealing the Patient Protection and Affordable Care Act failed to win enough votes.

“It’s really wait- and- see with the focus back on Washington and tax reform,” Zipper said.

Besides Washington, investors had their eye on the latest company earnings news. Investors bid up shares in several companies that posted solid quarterly results or outlooks.

RH, formerly Restoration Hardware, climbed 14.9 percent a day after the home furnishings and decor retailer reported stronger earnings. The shares rose $5.68 to $43.68.

Verint Systems jumped 10 percent after the software company reported betterthan-expected quarterly results. Verint also said during a management conference call with analysts that it is possible that at some point it will split itself into two businesses but noted it has no plans now to do that. Verint’s stock rose $3.95 to $43.50.

Energy prices closed sharply higher as traders weighed remarks from Iran’s oil minister, who said said the recent production-cut deal will probably be extended, and fighting in Libya is affecting its oil industry.

Benchmark U. S. crudeoil futures rose $1.14, or 2.4 percent, to close at $ 49.51 a barrel in New York. The contract rose 64 cents on Tuesday. Brent crude, used to price international oils, climbed $1.09, or 2.1 percent, to close at $52.42 a barrel in London.

The price of gold slipped $ 1.90 to settle at $ 1,253.70 an ounce. Silver held steady at $18.25 per ounce. Copper was little changed at $2.68 per pound.