U.S. Stocks Rise as Energy Advances, Airlines Boost Industrials

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U.S. stocks rose to halt a three-day slide, as beaten-down energy shares climbed for a second session from their lowest level since September and airlines led transportation companies off a three-month low.

Weakness in energy and industrial shares has helped restrain equities from any meaningful advance since the Standard & Poor’s 500 Index reached a more than three-month high in early November. Airlines boosted industrials today, while Chevron Corp. added 1.9 percent to bolster energy after cutting its 2016 spending plans.

The S&P 500 rose 0.2 percent to 2,052.26 at 4 p.m. in New York, near its average price during the past 50 days after earlier rising as much as 1 percent. The gauge remains on track for its first weekly decline in four.

With the Federal Reserve’s rate-setting meeting less than a week away, the S&P 500’s performance this December is proving an exception to the historical trend for the month -- typically the strongest for global equities. An early rally fizzled yesterday as Apple Inc. paced technology-share declines, while renewed worries about the pace of global growth erased all the benchmark index’s 2015 gains.

Fed Chair Janet Yellen has recently signaled the economy is ready for higher borrowing costs. Still, investors are caught between optimism about U.S. growth and concern that a slowdown in China and the consequent tumble in commodities will damp global growth prospects. Oil prices hovered near six-year lows Thursday after OPEC said crude output rose to the highest in more than three years in November.

Source : Bloomberg

U.S. Stocks Pare Gains as Energy Trims Rise, Crude Extends Drop

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U.S. stocks trimmed their gains after oil prices weakened further, blunting an advance among energy companies as equities have struggled for direction before next week’s Federal Reserve policy meeting.

Weakness in energy and industrial shares have helped keep equities from making any meaningful advance since the benchmark reached a more than three-month high in early November. Airlines boosted industrials today, while Chevron Corp. added 2.1 percent after cutting its 2016 spending plans.

The S&P 500 rose 0.3 percent to 2,052.72 at 12:38 p.m. in New York, paring an earlier 0.8 percent climb. Gains lost momentum at the index’s 200-day moving average. The Dow Jones Industrial Average added 65.11 points, or 0.4 percent, to 17,557.41, and the Nasdaq Composite Index gained 0.3 percent.

With the Fed’s rate-setting meeting less than a week away, the S&P 500’s performance this December is proving an exception to the historical trend for the month -- typically the strongest for global equities. An early rally fizzled yesterday as Apple Inc. paced technology-share declines, while renewed worries about the pace of global growth erased all the benchmark index’s 2015 gains.

Source : Bloomberg

Europe Stocks at 7-Week Low While Glencore Leads Miners Gains

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A rally in commodity producers failed to lift sentiment in European stocks, which closed lower for a third day.

The region’s shares extended their lowest levels since Oct. 21, with retailers Ocado Group Plc and Sports Direct International Plc plunging after reporting financial results that missed projections. Glencore Plc, on the other hand, jumped 7 percent as the Swiss commodities trader pledged to cut debt further, scale back operations and sell more assets.

The Stoxx Europe 600 Index slipped 0.3 percent at the close of trading in London, after earlier falling as much as 0.9 percent. It’s heading for a second week of losses for the first time in two months. Commodity producers climbed for a second day after hitting their lowest levels since 2009.

European equities lost 5.8 percent from their three-month high in November as commodity producers kept on sliding and the European Central Bank’s added stimulus fell short of expectations. The Stoxx 600 closed 12 percent below its April record.

The benchmark index had rebounded as much as 14 percent from a low in September through Nov. 30 in anticipation of the extended ECB measures and on optimism that the U.S. economy is strong enough to withstand an increase in interest rates by the Federal Reserve. The U.S. central bank will give its decision on Dec. 16, and traders are pricing in a 80 percent chance of a liftoff.

Source: Bloomberg

Gold Steps Higher, Taking Cues from Softer Dollar

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Gold futures moved higher in early trade Wednesday, tracking a slide in the U.S. dollar.

February gold gained $6.70, or 0.6%, to $1,082.80 an ounce.

The ICE U.S. Dollar Index DXY, -0.73% was 0.6% lower Wednesday, retreating after earlier moves drove the buck higher on expectations of an increase in benchmark interest rates by the Federal Reserve as soon as next week. The Federal Open Market Committee concludes its two-day monetary policy meeting Dec. 16.

A weaker dollar lifts the appeal of dollar-denominated precious metals like gold, making them less expensive to buyers using other monetary units.

After tumbling to a low of $1,046 an ounce in early December, gold prices have held relatively steady in the face of expectations of a rate hike, which can diminish the attractiveness of assets that don’t bear a yield.

A risk of investors covering some of their negative bets against gold might provide a bounce higher, market strategists have said.

Meanwhile, March silver picked up 19 cents, or 1.3%, to trade at $14.31 an ounce, after closing down 1.5% on Tuesday.

Source: MarketWatch