Global stocks gain on China stimulus hopes; oil up further

The crude oil prices edged further above $45 a barrel as forecasts for a drop in United States inventories and speculation of producer action to prop up prices countered concern about a supply glut.

Many U.S. producers were hit hard by the collapse in oil prices. The S&P 500 was on pace for a record high close. “We’re coming off a good employment number and we know the consumer’s been strong”. The Standard & Poor’s 500 index fell three points, or 0.2 percent, to 2,179. The Nasdaq shed 7.98 points, or 0.2 percent, to 5,213.14. Stocks in Taiwan and Singapore were higher but markets in China, Indonesia and New Zealand declined. The hiring spree, which followed an even bigger surge in June, gave investors more confidence that the economy is still growing.

STIMULUS SPECULATION: A measure of consumer price growth in China declined in July for the third month in a row and came in below the government’s inflation target.

USA markets initially wavered between small gains and losses, but ultimately remained slightly down the rest of the day.

Two drugmakers weighed on the market early on.

DEEPER SLIDE: Shares in Bristol-Myers Squibb were hammered again Monday after plunging on Friday following news that the drugmaker’s cancer treatment Opdivo failed in a study aimed at extending its usage for lung cancer patients. Royal Caribbean Cruises slid $4.92, or 6.7 percent, to $69.06, while Carnival lost $1.30, or 2.8 percent, to $45.18.

Oil prices dipped on Tuesday in choppy trade as forecasts for a weekly drop in USA crude inventories were countered by worries of a stubborn global petroleum glut. Chemours added $1.23, or 13.2 percent, to $10.54, while Vivint gained 34 cents, or 10.7 percent, to $3.53. Chesapeake Energy gained 12 cents, or 2.5 percent, to $5.01.

ENERGY: Benchmark U.S. crude was up $1, or 2.4 percent, at $42.80 per barrel in NY.

Oil’s recent dip back into the $30s per barrel may be enough to get some OPEC members to curb their bickering and consider joint action – if crude plummets again. Vivint gained 30 cents, or 9.4 percent, to $3.49. The deal underscores how serious Wal-Mart is about challenging online leader Amazon. Shares in Wal-Mart shed 42 cents to $73.34.

Mattress Firm vaulted more than twofold after the mattress retailer agreed to be acquired by furniture seller Steinhoff International in a deal valued at $3.8 billion, including debt. Gap sank 6.3 percent after reporting lower sales in the second quarter and in July. “We’re looking for a strong retail report that again confirms that the USA consumer is strong and doing their job of helping the economy”.

MARKETS OVERSEAS: In Europe, Germany’s DAX was up 1.3 percent, while France’s CAC 40 was up 0.8 percent. Britain’s FTSE 100 was up 0.7 percent.

Markets in Asia where mostly higher.

KEEPING SCORE: The Dow Jones industrial average rose 36 points, or 0.2 percent, to 18,566 as of 10:11 a.m. Tokyo’s Nikkei 225 surged 2.4 percent. Contracts traded during the five-day period ending August 4 (Market Prices and Uncertainty Report) suggest the market expects WTI prices could range from $29/b to $61/b (at the 95 percent confidence interval) in November 2016. It lost 2 cents on Friday. Hong Kong’s Hang Seng index fell 0.1 percent to 22,465.61 while China’s Shanghai Composite Index gained 0.7 percent to 3,025.68. Silver dipped 4 cents, or 0.2 percent, to $19.78 an ounce. India’s Sensex added 0.2 percent.

METALS: The price of gold rose $5.60, or 0.4 percent, to $1,339 an ounce.

WTI had its sharpest monthly fall in a year in July, dropping 14 percent, after runaway gasoline demand for the summer fell short of refiner production.