Tuesday, December 29, 2015

S&P 500 turns positive for year; tech stocks rally

Traders work on the floor of the New York Stock Exchange in New York, December 28, 2015. REUTERS/Lucas Jackson
Traders work on the floor of the New York Stock Exchange in New York, December 28, 2015.


U.S. stock indexes were higher on Tuesday, with the S&P 500 logging a small gain for the year, as tech stocks rallied and energy stocks reflected a recovery in crude prices.

The S&P 500 was up 0.8 percent for the year, while the Nasdaq Composite extended gains and was up 7.59 percent. The Dow Jones industrial average, however, was down about 0.66 percent.

"I think equities on average are destined to end 2015 in uneventful fashion," said Terry Sandven, chief equity strategist at U.S. Bank Wealth Management in Minneapolis.

"Investors on average are at the crossroads of concern and optimism," he said. Lower oil prices put the pace of global growth in question and could translate to lackluster earnings, he added.

Crude prices edged up as colder weather entered Europe and North America, raising hopes of a short-term uptick in the tepid demand that has plagued the commodity this year.

Exxon shares were up 0.6 percent at $79.22, while Chevron was up 1 percent at $91.28.

At 11:09 a.m. ET (1609 GMT), the Dow Jones industrial average was up 173.77 points, or 0.99 percent, at 17,702.04, the S&P 500 was up 18.73 points, or 0.91 percent, at 2,075.23 and the Nasdaq Composite index was up 56.09 points, or 1.11 percent, at 5,097.08.

All 10 major S&P sectors were higher, led by a 1.16 percent rise in the tech sector.

Apple was up 0.9 percent at $107.78, the biggest influence on the S&P. Amazon was up 1.9 percent at $688 and gave the biggest boost to the Nasdaq.

Data on Tuesday indicated higher consumer sentiment, with the Conference Board's index of consumer confidence for December rising to 96.5, above the 93.8 expected.

Still, the slide in oil prices appear to have dashed hopes of a strong year-end rally, traditionally known as the Santa Claus rally.

Trading volumes are expected to remain thin this week as the year winds down.

Pep Boys was up 8 percent at $18.80 after the auto parts retailer's board found Carl Icahn's latest offer superior to the deal it accepted from Japan's Bridgestone.

Advancing issues outnumbered decliners on the NYSE by 2,062 to 863. On the Nasdaq, 1,883 issues rose and 763 fell.

The S&P 500 index showed 23 new 52-week highs and no new lows, while the Nasdaq recorded 56 new highs and 16 new lows.

(Reporting by Abhiram Nandakumar in Bengaluru; Editing by Don Sebastian)

No comments:

Post a Comment