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Stocks - Wall Street Rebounds on Trade Hopes, Energy Gains

Published 04/12/2019, 21:49
Updated 04/12/2019, 22:58
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Investing.com - Rising oil prices boosted energy stocks, and hopes yet again that a phase one trade deal will finally be struck between the United States and China lifted the rest of the stock market on Wednesday.

The S&P 500 rose 0.63%, with the Dow Jones industrials up 0.53%. The Nasdaq Composite and the Nasdaq 100 indices were up 0.54% and 0.51%, respectively.

The rally trimmed the losses the market had sustained in the last three sessions. But the major averages remained roughly 1.5% below their record highs reached just last week.

Energy shares were the strongest sector of the market. Crude oil was the catalyst on reports OPEC and its allies may agree to deeper production cuts to boost global prices. In addition, the Energy Information Administration's weekly report on crude oil inventories showed a steeper decline than expected.

West Texas Intermediate rose 4.2% to $58.43. Brent crude, the global benchmark, had its biggest percentage gain since September, rising 3.6% to $63.

Devon Energy (NYSE:DVN), Schlumberger (NYSE:SLB) and ConocoPhillips (NYSE:COP) were among the energy sector leaders.

At the same time, higher oil prices pushed airline stocks lower. Fuel costs are among the carriers' biggest expenses.

Meanwhile, financial, industrial and health care stocks also helped the market. Goldman Sachs (NYSE:GS) was a leader of the Dow, along with 3M (NYSE:MMM) and health insurance giant UnitedHealth Group (NYSE:UNH).

Boeing (NYSE:BA) was off about 0.9% after United Airlines Holdings (NASDAQ:UAL) chose to buy 50 Airbus 321 jets to replace its aging fleet of Boeing 757s. United shares were off 0.8%, however.

Travel company Expedia (NASDAQ:EXPE) shares jumped 6.2% after the company's chief executive and chief financial officer resigned after clashing with Chairman Barry Diller and the company's board over the company's strategy and vision.

Financial stocks were helped by rising interest rates. The 10-Year Treasury yield rose to 1.772% from Tuesday's 1.709%. Gold fell back.

With 18 trading days left in 2019, the S&P 500 is up 24.2%, with the Dow up 18.5% and the Nasdaq Composite up 29.1%, likely their best annual gains since 2013.

So far, the House impeachment process against President Donald Trump has not moved markets much.

The market potentially faces some volatility Friday when the Labor Department reports the monthly data on payroll employment and the U.S. unemployment rate.

A possible hint on what may come: The monthly ADP Employment report of private-sector jobs suggested job growth might be slowing.

Pharmaceutical maker Allergan (NYSE:AGN), Campbell Soup (NYSE:CPB), Merck (NYSE:MRK), medical technology company Hologic (NASDAQ:HOLX) and french-fry maker Lamb Weston Holdings (NYSE:LW) were among stocks hitting 52-week highs.

Fashion retailer L Brands Inc (NYSE:LB), accessories retailer Capri Holdings (NYSE:CPRI), travel company Expedia (NASDAQ:EXPE) and Pioneer Natural Resources (NYSE:PXD) were among the top performing S&P 500 stocks on the day.

Salesforce.com (NYSE:CRM), Jacobs Engineering Group (NYSE:JEC), NRG Energy (NYSE:NRG) and HollyFrontier (NYSE:HFC) were among the weakest S&P 500 stocks on the day.

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