Markets Right Now: Dow at another record as oil price soars
Nigeria and Libya were exempt from the deal while Iran was allowed to increase production slightly above its October output. Traders also reacted to robust US economic data.
The Dow Jones industrial average rose 23.70 points, or 0.1 percent, to 19,121.60.
Nasdaq: 5,251.11; -72.57; -1.36%.
“The prices for the consumer do not get adjusted day to day”. Non-OPEC countries agreed to decrease production by 500000 bpd, with Russian Federation saying it would cut production by 300000 barrels a day.
Domestically, ADP and Moody’s Analytics reported that private employers added 216,000 jobs in November, well above the expected 161,000 job forecast.
Industrials rose 0.9 percent, led by railway stocks. The cartel produces about 40 percent of the world’s crude oil. The Fed’s Beige Book showed the U.S.is seeing moderate growth in most regions of the country.
“Big oil earnings are poised to double next year as crude prices continue to march higher and oilfield services costs remain depressed, said Doug Terreson, head of energy research at Evercore ISI and Institutional Investor’s top-rated analyst for integrated oil”, reports CNBC.
Dow Jones: 19,191.93; 68.35; +0.36%.
The agreement came as a surprise to stock markets, which had been fraught with worry over the past few weeks that the historically disagreeable group would not be able to reach a consensus with all its members. Bond yields are linked to higher interest rates.
The weakness among semiconductor stocks is weighing on the Nasdaq along with notable declines by software, internet, and biotech stocks. The S&P utility index was down 3.2 per cent, while the shares of AT&T fell 2.2 per cent. Benchmark U.S. crude picked up $1.57, or 3.2 percent, to $51.01 a barrel in NY after it jumped 9.3 percent Wednesday. Shares of Celgene CELG.O , which is developing the therapy with Bluebird, edged up 0.3 percent to $118.87. And at 15:45 CET final Manufacturing PMI for November will be released by Markit. The latest reading marks the highest level seen since July of 2014.
“Canada is a really oil-dependent economy, out west we have the oilsands, and given the fact that we now have oil prices trending higher we should see our dollar gain strength for the next little bit”.
The Dow is up 1,696.57 points, or 9.7 percent. The broader Topix index closed 0.9 percent higher at 1,483.27. Devon Energy climbed $5.31, or 12.6 per cent, to $47.47. Earlier, the company announced its liver disease treatment, PRX-OTC, has been given an orphan drug designation by the U.S. Food and Drug Administration (FDA).
Facebook fell 2.8 percent and Microsoft lost 1.8 percent.
Australian shares rose sharply amid across-the-board buying. Its stock rose $1.79, or 1.7 percent, to $107.73.
The Nasdaq is up 372.51 points, or 7.4 percent.
The mixed reaction by the major indexes suggests an overvalued market. Germany’s DAX lost 1 per cent and in Britain, the FTSE 100 fell 0.5 per cent.
Dollar General Corp.(DG) fell 7.3% following weaker-than-expected third-quarter results.
In economic news, final data from IHS Markit showed Eurozone manufacturing activity expanded at the fastest pace in 34 months in November. The score was unchanged from the flash estimate.
The central bank has been preparing the markets for a rate increase amid improving economic conditions. The jobless rate dropped to 9.8 percent in October from a revised 9.9 percent in September.
BONDS: Bond prices fell. Economists had expected jobless claims to inch up to 253,000. The Japanese currency is still near its highest in about 10 months.
Scotiabank’s revenue for the quarter was $6.75 billion, up from $6.13 billion a year earlier.
Meanwhile, the major European markets moved to the downside on the day.