Stocks gain on strong data with oil nearing $35/bbl
Buoyed with encouraging data, stocks started soaring on Wall Street, while crude oil was nearing $35 per barrel. Energy and bank stocks led the gains on the US markets. Contrary to the overall buoyancy in the market, company-specific news hammered down some stocks. Wall Street is currently looking to jobs data to be released on Friday.
Market analysts were pondering over reasons whether this is a real rally or just propelled by short covering. On the other side, SunEdison was among those who missed the party on Wall Street as it delayed its 10K owing to an ongoing internal probe into financial deals. Marathon Oil shares moved down after the announcement of a secondary offering of 135 million shares of common stock.
Meanwhile, Ford's stock rose on strong auto sales numbers for February. Casino operator Las Vegas Sands also announced better than forecast results and this fuelled shares to move up. Amazon shares, too, rose after a favorable survey by Cowen analysts, indicating strong early adoption of company's Prime Now service, according to Yahoo Finance.
Stocks on Wall Street rose on the support of energy and banking stocks. The strong jobs data allaying concerns about the economy growth, a fresh rally recorded on the Wall Street. The better than anticipated data about jobs creation in the private sector has boosted investor confidence.
The latest data showed improvement in manufacturing, construction and auto sales. These positive numbers rekindled hopes on another round of interest hike by the US Federal Reserve at lease for one time this year, boosting banking stocks, as reported by Reuters.
Expressing opinion about the latest jobs and manufacturing data, Gary Bradshaw, portfolio manager of Hodges Capital Management in Dallas, said "I've been encouraged by the economic numbers. There's been so much pessimism around energy. And in spite of that oil is near $35 (a barrel). When crude moves up it is telling the world, and particularly the US, is not going through a recession."
According to Bloomberg, stocks on the Wall Street rose along with oil price, while treasuries eased after the announcement of jobs data. The improved outlook on US economy growth prospects is giving more speculation about possible interest rate hike. Treasuries fell after the jobs data.
Extending gains from Tuesday, Standard & Poor's-500 index added 0.4 percent on Wednesday while Energy stocks rose to two-month high.
Crude prices touched $35.17 a barrel at one point of time during intra-day session. It was the highest since the 6th January 2016. Market analysts opine that crude oil price is moved out of negative band. US crude prices r after it rose to high since early January 2016. The latest data indicated fall in gasoline supplies and surge in oil intake by refineries. Copper price on the other hand, rose to three-month high.