Stocks Close Higher Amid Rise in Oil Prices

The major averages extended losses as the close approached, with the S&P 500 and Nasdaq composite more than 1.5 percent lower and the Dow Jones industrial average off more than 200 points. Dow Jones Industrial Average contracts increased 56 points, or 0.4 percent, to 15,867.

The Nasdaq composite index lost 72.69 points, or 1.6 percent, to 4,518.49. On Dec. 16, Federal Reserve Chair Janet Yellen raised interest rates to 0.25% from their historically low levels, the first hike since 2006.

The S&P 500 posted 3 new 52-week highs and 22 new lows; the Nasdaq recorded 12 new highs and 103 new lows.

Yesterday’s rally provided a reprieve for the S&P 500, which remains on track for its worst January since 2009 as a plunge in oil prices exacerbated worries that China’s slowdown will weigh on global growth. A report today showed home prices in 20 U.S. cities rose at a faster pace in the year ended November, underscoring the shortage of supply amid steady demand. The gains in stock market came from the back of a rally in oil prices.

USA stocks jumped Tuesday as the price of oil made another abrupt reversal, this time rising nearly 4 per cent after falling sharply the day before.

DeVry University, one of the nation’s largest for-profit colleges, mislead consumers about the employment and earnings of its graduates in numerous radio, television, online and print advertisements, according to a lawsuit filed today by the Federal Trade Commission.

Halliburton was down 1.6 percent at $29.70 after the oilfield services company reported a 42 percent fall in revenue, while D.R. Horton was up 1 percent at $28, after its profit beat estimates.

Tyco International vaulted 6.1 percent after announcing it will merge with Johnson Controls in a deal that shifts Johnson’s headquarters for tax purposes to Ireland.

The S&P 500 has tumbled more than 7 per cent this year. At this time previous year, the index had notched zero daily moves of 2 per cent.

Johnson & Johnson jumped 4.9 per cent after reporting fourth-quarter net income came in at US$1.44 per share, two cents above expectations. Cramer says that McDonald’s (MCD) turnaround is for real after the company reported a strong quarter that saw same-store sales rise 5% year over year.