Energy firms help boost market
Stocks trade mostly higher, with chemical companies making big gains as the tech sector falls.
new york» Stocks finished mostly higher Tuesday in another cautious day of trading. Energy companies climbed in tandem with the price of oil, but technology companies fell.
The market wavered between small gains and losses throughout the day. Chemical companies made the biggest gains, led by DuPont, while energy companies benefited from higher oil prices. Health care stocks fell on more regulatory scrutiny of drug pricing. The Nasdaq composite index fell for the fourth day in a row.
Trading has been light this week. Julian Emanuel, U.S. equities and derivatives strategist for UBS, said investors are waiting to see the results of Federal Reserve and Bank of Japan policy meetings in the next few days.
The Fed is expected to leave interest rates unchanged, while the Bank of Japan could take new steps to stimulate Japan’s economy.
“People are very, very wary of taking big positions,” he said. “The commentary is going to be very closely parsed.”
The Dow Jones industrial average added 13.08 points, or 0.07 percent, at 17,990.32. The Standard & Poor’s 500 index rose 3.91 points, or 0.2 percent, to 2,091.70. The Nasdaq fell 7.51 points, or 0.2 percent, to 4,888.28.
The price of benchmark U.S. crude oil jumped $1.40, or 3.3 percent, to $44.04 per barrel in New York. Brent crude, used to price international oils, gained $1.26, or 2.8 percent, to $45.74 a barrel in London.
That helped energy stocks, and ConocoPhillips rose $1.81, or 3.9 percent, to $48.08, while Pioneer Natural Resources gained $11.86, or 7.7 percent, to $165.36. Oil company BP rose $1.70, or 5.3 percent, to $33.49 after BP posted a larger-than-expected profit and it left its dividend unchanged even though oil prices and energy income have plunged.
Telecommunications companies, one of the best performing parts of the market this year, fell Tuesday. The stocks traded lower as bond prices fell and yields rose, making them more attractive to income-seeking investors compared to telecom stocks.
Drug companies fell as investors looked ahead to the latest Congressional panel on drug prices. The Senate Aging Committee will hold its third meeting on drug prices Wednesday, and on Tuesday the committee said former Valeant Pharmaceuticals executive Robert Schiller and hedge fund manager Bill Ackman, an investor in Valeant, will both be questioned.