Stocks rise with oil prices, consumer and bank stocks climb
Stocks rise with oil prices, consumer and bank stocks climb
(35 minutes later)
NEW YORK — U.S. stocks are rising Tuesday as the price of oil recovers some of its losses from a day earlier. Consumer stocks are getting a lift from strong fourth-quarter results from companies like Procter & Gamble and handbag maker Coach. Banks are also climbing.
NEW YORK — Higher oil prices and some positive earnings news from U.S. companies are helping to send the stock market higher.
KEEPING SCORE: The Dow Jones industrial average rose 255 points, or 1.6 percent, to 16,140 as of 11:15 a.m. Eastern time. The Standard & Poor’s 500 index climbed 22 points, or 1.2 percent, to 1,899. The Nasdaq composite added 32 points, or 0.7 percent, to 4,550.
Energy stocks were leading the gains on Wall Street in midday trading Tuesday as the price of oil jumped 4 percent to $31 a barrel.
ENERGY RISES: Energy stocks made early gains as the price of U.S. crude rose 75 cents, or 2.5 percent, to $31.09 a barrel in New York. It fell almost 6 percent Monday. Brent crude, a benchmark for international oils, gained 92 cents, or 3 percent, to $31.42 a barrel in London. Exxon Mobil picked up $1.55, or 2.1 percent, to $75.53 and Chevron rose $2.68, or 3.3 percent, to $83.57.
In earnings news, 3M rose 5 percent and specialty glass maker Corning increased 6 percent after reporting results that were better than analysts were expecting.
IN THE BAG: Luxury handbag maker Coach reported a greater profit than analysts had expected, and its stock rose $2.44, or 8.1 percent, to $32.80. Even with that big gain, however, it’s down 10 percent over the last 12 months.
The Dow Jones industrial average gained 233 points, or 1.5 percent, to 16,119 at noon Eastern time.
3M: The maker of Post-it notes, industrial coatings and ceramics reported a greater profit and more revenue than analysts expected. 3M also backed its annual profit forecast. It rose $6.73, or 4.9 percent, to $144.30.
The Standard & Poor’s 500 index climbed 20 points, or 1.1 percent, to 1,897. The Nasdaq composite added 36 points, or 0.8 percent, to 4,554.
P&G PRICE GAINS: Consumer goods maker Procter & Gamble reported a larger profit in the fourth quarter as it raised prices and cut costs. The maker of Pantene shampoo, Crest toothpaste and Charmin toilet paper added $2.34, or 3 percent, to $79.19.
Bond prices fell. The yield on the 10-year Treasury note rose to 2.01 percent.
BANKED: Huntington Bancshares agreed to buy competitor FirstMerit Corp for $3.4 billion. The deal would create the largest bank in Ohio, and the companies would have about $100 billion in combined assets. FirstMerit added $2.55, or 16.6 percent, to $17.92 and Huntington lost 88 cents, or 10 percent, to $7.92.
GOING TO THE ATM: Zions Bancorp added 94 cents, or 4.6 percent, to $21.33 after it reported strong fourth-quarter results on Monday. Goldman Sachs gained $4.25, or 2.8 percent, to $155.37.
DOW POWER: The Dow is doing particularly well because many of the companies making the biggest gains, including 3M, Procter & Gamble, Exxon, Chevron and Goldman Sachs are all Dow components. The Nasdaq is making smaller gains because tech stocks are little changed.
FULL SPRINT: Sprint, the fourth-largest wireless provider in the U.S., reported a smaller-than-expected quarterly loss and rose 38 cents, or 15.1 percent, to $2.90. The stock, which hit an all-time low last Wednesday, has been on a wild ride the last few days, jumping almost 15 percent Friday and then falling 12 percent Monday. Late in the day Monday, Sprint said it had cut about 2,500 jobs since last fall, or 8 percent of its staff.
BUMPY LANDING: Lockheed Martin said it will acquire the engineering company Leidos, combine it with its information systems and global solutions unit, and then separate that company so it can focus on its remaining aerospace and defense business. The stock shed $8.38, or 4 percent, to $202.63.
HEART BEAT: Johnson & Johnson posted a larger fourth-quarter profit after it sold its Cordis heart device business. The company also makes products including baby shampoo, prescription medicines and medical devices. It rose $2.72, or 2.8 percent, to $99.12.
OVERSEAS: France’s CAC 40 rose 1.2 percent, as did Germany’s DAX. Britain’s FTSE 100 gained 0.7 percent. However Asian markets were hammered by Monday’s slide in oil prices, which can signal weak demand. The Shanghai Composite dropped 6.4 percent to finish at 2,749.78, the lowest since December 2014. Japan’s Nikkei 225 lost 2.4 percent to 16,708.90.
BONDS, CURRENCIES: U.S government bond prices fell. The yield on the 10-year Treasury note rose to 2.02 percent from 2.01 percent. The euro rose to $1.0846 from $1.0837, and the dollar dipped to 118.46 yen from 118.48 late Monday.
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Marley Jay can be reached at http://twitter.com/MarleyJayAP. His work can be found at http://bigstory.ap.org/journalist/marley-jay
Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
