Stock indexes deliver solid gains; oil prices surge

The Associated Press

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

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

The S&P 500 index rose 25.87 points, or 1 percent, to 2,697.79. The gain nudged the benchmark index into positive territory for the year. The Dow Jones industrial average posted its fifth gain in a row, climbing 182.33 points, or 0.7 percent, to 24,542.54.

The Nasdaq added 73 points, or 1 percent, to 7,339.91. The Russell 2000 index of smaller-company stocks picked up 9.66 points, or 0.6 percent, to 1,596.05.

The indexes are on track to end the week with solid gains. They were moving higher for much of the morning as investors weighed the latest corporate quarterly results.

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

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

While technology companies helped drive the market higher, energy sector stocks racked up the biggest gain as crude oil prices rebounded a day after the Trump administration moved to withdraw the U.S. from a 2015 nuclear accord with Iran and reinstate sanctions on the country.

“We’ve had some noise from Iran, but some of the underlying [oil market] trends are probably still intact in terms of a recovering economy, high demand and higher inflation,” Mr. Delwiche said.

Benchmark U.S. crude oil climbed $2.08, or 3 percent, to settle at $71.14 per barrel in New York. That’s the highest level in nearly 3½ years. Brent crude, which is used to price international oils, gained $2.36, or 3.2 percent, to close at $77.21 per barrel in London.

The pickup in oil prices sent energy stocks higher. Occidental Petroleum rose 5.4 percent to $82.40.

Meanwhile, Monster Beverage slumped 7.5 percent to $49.11 after the energy drink maker reported disappointing sales in the first quarter and said its profit margins decreased.