The price of oil rose about 4 percent as investors hope the countries in OPEC, which collectively produce more than a third of the world’s oil, will soon finalize a deal that would lower oil production and help support prices. The gains were widespread, with technology, basic materials and utility companies all moving higher.
The Dow Jones industrial average rose 89 points, or 0.5 percent, to close at 18,957, topping the record close it set last week. The Standard & Poor’s 500 index added 16 points, or 0.7 percent, to 2,198. The Nasdaq composite finished at 5,369, up 47 points, or 0.9 percent, beating its all-time high from September.
The last time all those indexes set records on the same day was Dec. 31, 1999, according to Ryan Detrick, senior market strategist for LPL Financial.
For the year, the Dow is up 1,531.66 points, or 8.8 percent; the S&P 500 is up 154.24 points, or 7.5 percent; and the Nasdaq is up 361.45 points, or 7.2 percent.
An index of small-company stocks, which have outpaced the market this month, is also at a record high. The Russell 2000 has climbed for 12 straight trading days. Investors are betting that smaller companies will benefit from President-elect Donald Trump’s plans to lower corporate taxes and loosen regulations.
Financial markets are also betting that OPEC countries will soon be able to finalize a deal that would cut oil production and help support prices. Meat producer Tyson Foods is tumbling after it reported weak fourth-quarter results.
The Dow has been setting records since the presidential election earlier this month, while the S&P 500 and Nasdaq reached all-time highs this summer. Small-company stocks, which are at record highs already, also continued to climb.
Benchmark New York crude gained $1.96, or 4.3 percent, to $47.65 a barrel while Brent crude, the international standard, rose $2.09, or 4.5 percent, to $48.95 a barrel in London. That led to gains for energy companies. Marathon Oil added 81 cents, or 5.2 percent, to $16.43 and Exxon Mobil added $1.10, or 1.3 percent, to $86.38. Chevron gained $1.44, or 1.3 percent, to $110.64.
OPEC nations will meet in Vienna on Nov. 30. They have agreed to preliminary terms of a deal that will reduce the production of oil slightly, but the details remain to be determined.
Quincy Krosby, market strategist at Prudential Financial, said investors are encouraged that OPEC is trying to limit production. But she doesn’t think a deal, if one happens, will have much effect on oil prices.
“There’s nothing to suggest the agreement’s going to hold,” she said. “When all is said and done, supply and demand will ultimately dictate the price.”
Meat producer Tyson Foods tumbled $9.76, or 14.5 percent, to $57.60. The company’s fourth-quarter profit and sales fell far short of Wall Street’s forecasts as Tyson’s chicken business struggled. The company also said CEO Donnie Smith will step down at the end of this year, and company president Tom Hayes will replace him.
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