U.S. stocks post third rise as oil inventories slide again

Oil prices surged on Wednesday after an unexpected fall in USA inventories, with both the US oil and Brent crude jumping almost 4 percent.

The Dow Jones Industrial Average climbed 165.65 points (0.96 per cent) to 17,417.27. The S&P 500 gained 25.32 points to 2,064.29 and the Nasdaq Composite added 0.9 per cent to 5,045.93. “People want to feel good, they want to dress up their portfolios and look fully invested going into yearend”, said Tim Ghriskey, chief investment officer of Solaris Group in Bedford Hills, New York.

The US Commerce Department announced on Tuesday that the third estimate of real GDP increased at an annual rate of 2 percent in the third quarter of 2015, slightly down from the second estimate of 2.1 percent but above market expectations of 1.5 percent. Volume is expected to be light, which could exacerbate volatility.

But the S&P energy sector snapped a three-day rally, declining 0.71 percent.

Data released on Wednesday showed that consumer sentiment had reached a five-month high in December as personal incomes rose in November for the eighth straight month.

Non-defence capital goods – a proxy for businesses’ spending plans – fell 0.4%, but new home sales rose 4.3% and the numbers weren’t weak enough to stop investors from looking with hope to the oil market.

MBIA shares were up 8 percent at $6.74 after Puerto Rico’s debt-ridden power utility PREPA tentatively agreed to restructure its debt. The stock hit a record high earlier in the day after the world’s largest sportswear maker reported strong results.

Advancing issues outnumbered decliners on the NYSE by 1,478 to 1,143. On the Nasdaq, 1,580 issues rose and 1,075 fell.