MARKET SNAPSHOT: U.S. Stocks End Higher; Nasdaq Snaps 8-day Losing Streak
Source: Dow Jones News
By Anora Mahmudova and Victor Reklaitis, MarketWatch
Oil slumps 3.1% to lowest level since Dec. 2003
U.S. stocks ended Tuesday's session with solid gains as the oil market continues to dominate investor sentiment.
The main indexes started the day higher but dipped into negative territory by the afternoon, when oil prices plunged to multiyear lows. Stocks, however, recovered and rallied into the close with technology and health-care sectors leading gains.
The S&P 500 closed 15.01 points, or 0.8%, higher at 1,938.68 with eight of its 10 main sectors finishing in positive territory.
The Dow Jones Industrial Average gained 117.65 points, or 0.7%, to 16,516.22. Meanwhile, the Nasdaq Composite ended the day up 47.93 points, or 1%, at 4,685.92, snapping an eight-day slump.
"The late-afternoon rally is surprising, because there is no reason for a strong day. The only possible explanation is lack of bad news and some bargain-buying," said Randy Frederick, managing director of trading and derivatives at Schwab Center for Financial Research.
Frederick said that markets have entered a new phase when investors are selling rallies instead of buying the dips.
The rebound from session lows coincided with the closing of futures markets.
The U.S. oil benchmark (http://www.marketwatch.com/story/crude-sinks-to-30-a-barrel-a-level-not-seen-in-12-years-2016-01-12), which was trading higher in the morning, fell sharply, settling 3.1% lower at $30.44 a barrel--its lowest finish since Dec. 1, 2003--after dipping as low as $29.93.
(https://twitter.com/zerohedge/status/687017638040580096)
"Today's action is a classic definition of a dead-cat bounce, which began late afternoon on Monday and saw a follow-through this morning. But when markets rally for no reason, people take advantage and lighten their positions," said Michael Antonelli, equity sales trader at R.W. Baird & Co.
See also:10 oil companies that will thrive as crude prices rebound (http://www.marketwatch.com/story/10-oil-companies-that-will-thrive-as-crude-prices-rebound-2016-01-12)
Antonelli said markets are likely to retest August lows below 1,900, as there is still a lot of selling pressure.
"We believe the big takeaway for U.S. investors at the start of 2016 is that China is one of many issues that will likely create more volatility," said Kristina Hooper, U.S. investment strategist for Allianz Global Investors, in a note. But "that is only part of the story," as good U.S. economic reports suggest "investors with longer time horizons could find attractive opportunities amid the disarray," she added.
Other markets: China's Shanghai Composite closed higher Tuesday (http://www.marketwatch.com/story/china-stocks-gain-asian-markets-breathe-sigh-of-relief-2016-01-11), but it is still down nearly 15% for the year amid worries over how Beijing is managing market turmoil and a slowdown in the world's second-largest economy.
European stocks traded higher (http://www.marketwatch.com/story/european-stocks-rebound-after-four-day-losing-streak-2016-01-12). Beyond Shanghai, Asian markets mostly closed lower (http://www.marketwatch.com/story/china-stocks-gain-asian-markets-breathe-sigh-of-relief-2016-01-11). Gold futures dipped, while a key dollar index edged up.
Individual movers: Alcoa Inc. (AA) shares plunged 9% after the company on Monday reported adjusted quarterly profit that topped Wall Street's forecasts, but revenue missed expectations (http://www.marketwatch.com/story/alcoa-reports-18-drop-in-revenue-2016-01-11-17485259).
Energy and materials companies were among the top decliners on the S&P 500. Williams Companies (WMB) fell 12%, while Southwestern Energy Company (SWN) fell 9.2%.
Shares of health insurers and health-care companies saw big gains.
Shares of Anthem Inc. (ANTM) jumped 5.6% after the company said it enrolled more members than it had expected last year.
Also late Monday, Lululemon Athletica Inc. (LULU) raised its fourth-quarter guidance (http://www.marketwatch.com/story/lululemon-hikes-outlook-on-strong-holiday-sales-2016-01-11), citing strong sales for the holiday season. Shares rose 3.8% on Tuesday.
Economic news:Labor's Job Openings and Labor Turnover Survey (http://www.marketwatch.com/story/job-openings-rise-to-543-million-in-november-2016-01-12-1010385)showed 5.43 million job openings, up from 5.34 million in October. That's still shy of the all-time high notched earlier in the year, but moving in the right direction.
(END) Dow Jones Newswires
January 13, 2016 08:38 ET (13:38 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Source: Dow Jones News
By Anora Mahmudova and Victor Reklaitis, MarketWatch
Oil slumps 3.1% to lowest level since Dec. 2003
U.S. stocks ended Tuesday's session with solid gains as the oil market continues to dominate investor sentiment.
The main indexes started the day higher but dipped into negative territory by the afternoon, when oil prices plunged to multiyear lows. Stocks, however, recovered and rallied into the close with technology and health-care sectors leading gains.
The S&P 500 closed 15.01 points, or 0.8%, higher at 1,938.68 with eight of its 10 main sectors finishing in positive territory.
The Dow Jones Industrial Average gained 117.65 points, or 0.7%, to 16,516.22. Meanwhile, the Nasdaq Composite ended the day up 47.93 points, or 1%, at 4,685.92, snapping an eight-day slump.
"The late-afternoon rally is surprising, because there is no reason for a strong day. The only possible explanation is lack of bad news and some bargain-buying," said Randy Frederick, managing director of trading and derivatives at Schwab Center for Financial Research.
Frederick said that markets have entered a new phase when investors are selling rallies instead of buying the dips.
The rebound from session lows coincided with the closing of futures markets.
The U.S. oil benchmark (http://www.marketwatch.com/story/crude-sinks-to-30-a-barrel-a-level-not-seen-in-12-years-2016-01-12), which was trading higher in the morning, fell sharply, settling 3.1% lower at $30.44 a barrel--its lowest finish since Dec. 1, 2003--after dipping as low as $29.93.
(https://twitter.com/zerohedge/status/687017638040580096)
"Today's action is a classic definition of a dead-cat bounce, which began late afternoon on Monday and saw a follow-through this morning. But when markets rally for no reason, people take advantage and lighten their positions," said Michael Antonelli, equity sales trader at R.W. Baird & Co.
See also:10 oil companies that will thrive as crude prices rebound (http://www.marketwatch.com/story/10-oil-companies-that-will-thrive-as-crude-prices-rebound-2016-01-12)
Antonelli said markets are likely to retest August lows below 1,900, as there is still a lot of selling pressure.
"We believe the big takeaway for U.S. investors at the start of 2016 is that China is one of many issues that will likely create more volatility," said Kristina Hooper, U.S. investment strategist for Allianz Global Investors, in a note. But "that is only part of the story," as good U.S. economic reports suggest "investors with longer time horizons could find attractive opportunities amid the disarray," she added.
Other markets: China's Shanghai Composite closed higher Tuesday (http://www.marketwatch.com/story/china-stocks-gain-asian-markets-breathe-sigh-of-relief-2016-01-11), but it is still down nearly 15% for the year amid worries over how Beijing is managing market turmoil and a slowdown in the world's second-largest economy.
European stocks traded higher (http://www.marketwatch.com/story/european-stocks-rebound-after-four-day-losing-streak-2016-01-12). Beyond Shanghai, Asian markets mostly closed lower (http://www.marketwatch.com/story/china-stocks-gain-asian-markets-breathe-sigh-of-relief-2016-01-11). Gold futures dipped, while a key dollar index edged up.
Individual movers: Alcoa Inc. (AA) shares plunged 9% after the company on Monday reported adjusted quarterly profit that topped Wall Street's forecasts, but revenue missed expectations (http://www.marketwatch.com/story/alcoa-reports-18-drop-in-revenue-2016-01-11-17485259).
Energy and materials companies were among the top decliners on the S&P 500. Williams Companies (WMB) fell 12%, while Southwestern Energy Company (SWN) fell 9.2%.
Shares of health insurers and health-care companies saw big gains.
Shares of Anthem Inc. (ANTM) jumped 5.6% after the company said it enrolled more members than it had expected last year.
Also late Monday, Lululemon Athletica Inc. (LULU) raised its fourth-quarter guidance (http://www.marketwatch.com/story/lululemon-hikes-outlook-on-strong-holiday-sales-2016-01-11), citing strong sales for the holiday season. Shares rose 3.8% on Tuesday.
Economic news:Labor's Job Openings and Labor Turnover Survey (http://www.marketwatch.com/story/job-openings-rise-to-543-million-in-november-2016-01-12-1010385)showed 5.43 million job openings, up from 5.34 million in October. That's still shy of the all-time high notched earlier in the year, but moving in the right direction.
(END) Dow Jones Newswires
January 13, 2016 08:38 ET (13:38 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
