View the article online at http://citywire.co.uk/money/article/a887765
Overnight Markets: S&P 500, Dow climb a fifth day
Energy stocks surged after oil rallied on speculation producers may freeze output at current levels.
Major US stock indexes were mixed on Monday as speculation Chinese stimulus efforts will boost demand for natural resources offset sharp declines in large-cap technology names.
The Dow Jones industrial average was up 67 points, or 0.4%, to 17,054 and the S&P 500 closed up two points, or 0.1%, to 2,002. The Nasdaq Composite dropped nine points, or 0.2%, to 4,708, weighed by losses in formerly highflying technology stocks, such as Netflix Inc., Facebook Inc. and Alphabet Inc.
Energy stocks climbed after oil rallied on speculation producers may freeze output at current levels. Crude prices were up more than 5%. Exxon Mobil Corp. increased 2.6% to a four-month high.
Commodities prices also rose after the People’s Bank of China said the country’s foreign-exchange reserves fell at a slower pace last month as the financial markets stabilised and policy makers took more steps toward shoring up growth.
Technology stocks suffered the most on Monday, with Facebook Inc. falling 2.5% after the company said on Friday it would boost tax payments in the UK. Apple Inc. fell 1.1%, Netflix Inc shares dropped 6% while Alphabet declined 2.1%.
Elsewhere, shares in DuPont Co. rose 2% after media reports that Germany’s BASF SE is considering a counterbid for its rival. DuPont agreed to a merger with Dow Chemical Co. late last year.
Celldex Therapeutics Inc. shares plunged 53% after an independent panel recommended that the company discontinue the late-stage trial of its brain cancer treatment following disappointing trial results.
US-traded Valeant Pharmaceuticals shares increased 6.7%. The Canadian drugmaker said it would report fourth-quarter numbers next week, giving investors hopes for positive news after months of uncertainty and volatility.
In Asia, shares declined on Tuesday after a stronger yen cut the earnings outlook for exporters and ahead of Chinese data that will likely show a decline in exports.
The MSCI Asia Pacific Index fell 1% to 125 as of 10:50 a.m. in Tokyo. In Japan, Nikkei Stock Average 225 fell 1.63%, Australia’s ASX All Ordinaries Index was down 0.53% and South Korea’s Kospi Index declined 1.09%.In Hong Kong, the Hang Seng Index fell 1.13%, while China’s Shanghai Composite Index was trading 3.07% lower.
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by David Kempton on May 24, 2016 at 17:15