Stocks edge up as oil prices stabilize
U.S. stocks edged higher Thursday, led by gains for energy companies as the price of oil stabilized after a big drop the day before.
Oil rose as negotiations with Iran over its nuclear program hit a snag. That could mean Iranian oil will continue to be held back from the international market by sanctions.
Investors were also assessing some mixed news on company earnings.
Drugstore chain Walgreens climbed after reporting earnings that surpassed the expectations of Wall Street analysts. The company also said it would expand a cost-cutting program. Alcoa and Bed, Bath & Beyond dropped after delivering earnings reports that disappointed investors.
The Standard & Poor’s 500 index rose 9.28 points, or 0.5%, to 2,091.18. The Dow Jones industrial average rose 56.22 points, or 0.3%, to 17,958.73. The Nasdaq composite gained 23.74 points, or 0.5%, to 4,974.56.
Walgreens was one of the day’s biggest gainers. Its stock jumped $4.94, or 5.6%, to $92.62 after it earnings topped expectations. The drugstore chain said it will close about 200 U.S. stores as part of an expanded costreduction push.
Alcoa was among the losers. It posted a first-quarter profit that beat Wall Street expectations, but its revenue fell short.
Alcoa is striving to transform itself from an aluminum maker into a supplier for the auto and aerospace industries, making it less sensitive to swings in commodity prices. Analysts were disappointed by the outlook for the company’s rolled metal products, which include sheets used for drinks and food cans. Alcoa’s stock dropped 46 cents, or 3.4%, to $13.21.
Bed Bath & Beyond also slumped after reporting earnings. Results for the housewares retailer fell short of Wall Street expectations. Its earnings outlook was also less than forecast. The stock dropped $4.22, or 5.4%, to $73.46.
In energy trading, benchmark U.S. crude rose 37 cents to close at $50.79 a barrel in New York. Brent crude, a benchmark for international oils used by many U.S. refineries, rose $1.02 to close at $56.57 in London.