Stocks Rise Day After Stumble 03/20 09:19
U.S. stocks are rising Tuesday as energy companies climb with oil prices and
banks move up along with interest rates.
NEW YORK (AP) -- U.S. stocks are rising Tuesday as energy companies climb
with oil prices and banks move up along with interest rates. The market was
recovering some of its losses from a day ago. Other sectors including health
care and industrials are also bouncing back. Technology stocks are mostly
higher, but Facebook continues to slump following a report the Federal Trade
Commission will investigate its handling of user data and Oracle is plunging
after releasing disappointing results and forecasts.
KEEPING SCORE: After a drop of 1.4 percent Monday, the S&P 500 index added 7
points, or 0.3 percent, to 2,719 as of 10 a.m. Eastern time. The Dow Jones
industrial average gained 113 points, or 0.4 percent, to 24,724. The Nasdaq
composite rose 24 points, or 0.3 percent, to 7,368. The Russell 2000 index of
smaller-company stocks picked 4 points, or 0.3 percent, to 1,573.
ENERGY: Benchmark U.S. crude rose $1.14, or 1.8 percent, to $63.20 a barrel
in New York. Brent crude, used to price international oils, gained $1.18, or
1.8 percent, to $67.23 per barrel in London.
Among energy companies, Chevron gained $1.06 to $114.95 and Halliburton
added 58 cents, or 1.3 percent, to $45.26.
FED AHEAD: The Federal Reserve's leaders began a two-day policy meeting that
is expected to result in another interest rate increase on Wednesday. The Fed
has said it expects to raise interest rates a total of three times this year,
and one of the key debates on Wall Street is whether it will wind up increasing
rates three times or four. The current meeting is the Fed's first since Jerome
Powell became chairman, and investors will be watching his comments at a press
conference Wednesday afternoon.
Bond prices fell. The yield on the 10-year Treasury note rose to 2.88
percent from 2.85 percent. That sent interest rates higher, which allows banks
to charge more money on loans.
Lincoln National advanced 91 cents, or 1.2 percent, to $76.71. Insurer AIG
climbed 64 cents, or 1.2 percent, to $55.09 and Aflac picked up 60 cents, or
1.3 percent, to $45.30.
TECH REBOUNDS: Technology companies recovered some of the ground they lost
Monday. Those stocks have done far better than the rest of the market since the
beginning of 2017, and investors pulled away from the sector one day ago as
Facebook and Google's parent company Alphabet took steep losses. The sector
regained some of those losses on Tuesday.
Microsoft gained 81 cents to $93.70 and Adobe Systems rose $6.50, or 2.9
percent, to $228.68. Over the last 12 months, the S&P 500 technology index is
up 32 percent while the S&P 500 itself is up almost 15 percent.
BUT NOT FACEBOOK: Facebook continued to skid as investors tried to assess
the fallout from reports that Cambridge Analytica, a data mining firm working
for President Donald Trump's campaign, improperly obtained data on 50 million
Facebook users without their permission. Bloomberg News reported that the
Federal Trade Commission will investigate Facebook's handling of user data and
whether it violated the terms of a 2011 agreement with the agency. Britain's
information commissioner said she will seek a warrant to access Cambridge
Facebook stock lost $2.59, or 1.5 percent, to $169.98. It fell almost 7
percent Monday, its worst loss in four years, and early Tuesday it touched its
lowest price since late September. Alphabet, which fell 3 percent Monday, edged
up $4.45 to $1,104.52.
CLOUDY VISIONS: Investors were disappointed with Oracle's third-quarter
report. While the company announced a bigger profit than analysts expected,
they were less impressed once items like lower tax rates and stock repurchases
were excluded, and its sales were lower than Wall Street had forecast. The
company's forecast for the fourth quarter also came up short of estimates. The
stock dropped $4.67, or 9 percent, to $47.28.
CURRENCIES: The dollar rose to 106.47 yen from 105.97 yen. The euro fell to
$1.2269 from $1.2357.
OVERSEAS: France's CAC 40 gained 0.1 percent and Germany's DAX added 0.2
percent. Britain's FTSE 100 was 0.4 percent higher. Japan's benchmark Nikkei
225 lost 0.5 percent while South Korea's Kospi edged up 0.4 percent. Hong
Kong's Hang Seng inched up 0.1 percent.