Energy and technology stocks jump, sending US indexes higher

A pair of traders work in their booth on the floor of the New York Stock Exchange, Tuesday, Nov. 15, 2016. U.S. stocks are rising Tuesday as the price of oil soars, sending energy companies higher. (AP Photo/Richard Drew)
A pair of traders work in their booth on the floor of the New York Stock Exchange, Tuesday, Nov. 15, 2016. U.S. stocks are rising Tuesday as the price of oil soars, sending energy companies higher. (AP Photo/Richard Drew)

NEW YORK (AP) — U.S. stocks are climbing Tuesday as the price of oil makes its biggest jump in seven months, sending energy companies higher. Big technology stocks, which have been mostly left out of a post-election rally, turned sharply higher. Microsoft, Facebook and Google’s parent company, Alphabet, all posted solid gains.

Bank stocks, which had soared over the past week, gave back some of those gains. Bond prices edged higher, sending long-term interest rates slightly lower. Bond prices had fallen sharply since the election over worries that President-elect Donald Trump’s spending plans would lead to higher inflation.

KEEPING SCORE: The Dow Jones industrial average picked up 27 points, or 0.1 percent, to 18,895 as of 3:10 p.m. Eastern time. The Standard & Poor’s 500 index rose 14 points, or 0.7 percent, to 2,178. The Nasdaq composite added 62 points, or 1.2 percent, to 5,280.

ENERGY: Energy companies led the market higher as investors once again grew hopeful that the OPEC cartel will agree to cut fuel production. Later this month representatives of the OPEC nations will try to complete a deal that would lower their output and strengthen oil prices.

Benchmark U.S. crude gained $2.49, or 5.7 percent, to $45.81 per barrel in New York. Brent crude, used to price international oils, rose $2.52, or 5.7 percent, to $46.95 a barrel in London. Among energy stocks, Exxon Mobil rose $1.38, or 1.6 percent, to $86.67 and Apache added $4.12, or 7 percent, to $63.05.

CHANGING COURSE: Tuesday’s trading was a partial reversal of the moves investors have made since the presidential election one week ago. Tech stocks have been losing ground recently, but Microsoft picked up $1.41, or 2.4 percent, to $59.14 and graphics processor maker Nvidia rose $2.56, or 3.1 percent, to $86.20..

Bond prices rose and yields, which have reached their highest levels this year, slipped. The yield on the 10-year Treasury note declined to 2.23 percent from 2.27 percent. Companies that pay large dividends, like phone companies, also changed course and rose.

Banks returned some of their recent gains. JPMorgan Chase fell 68 cents to $78.83 and Wells Fargo gave up 93 cents, or 1.7 percent, to $52.29.

THE QUOTE: “The market somehow decided ‘let’s give the Trump presidency a chance,” said John DeClue, chief investment officer for U.S. Bank’s private client reserve. However DeClue said the bond market could struggle with Trump in the White House: if taxes are cut and government spending rises sharply, that could lead to climbing deficits that would trouble investors in U.S. government debt.

SHOPPING DEAL: Equity One will combine with Regency Center in a deal that combines two real estate investment trusts that own shopping centers. The two companies have more than 400 properties, most of them anchored by grocery stores. Equity One climbed $2.02, or 7.2 percent, to $29.89 while Regency Center lost $2.73, or 3.9 percent, to $67.13.

BUFFET BUYS AIRLINES: Billionaire investor Warren Buffett’s Berkshire Hathaway bought stock in United Continental and American Airlines. Buffett has avoided the volatile industry in the past, but his holding company disclosed stakes in each company in a form filed with the Securities and Exchange Commission. United picked up $2.97, or 4.7 percent, to $65.91 and American gained $1.40, or 3.2 percent, to $44.80.

GROUNDED: Aerospace giant Boeing fell after United said that it will postpone delivery of 61 new Boeing 737 jets that it planned to buy. It will convert the orders to a new, more fuel-efficient model that Boeing calls the 737 Max. Boeing stock lost $1.35 to $148.64.

RETAIL DETAILS: Retail sales climbed 0.8 percent in October as consumers spent more money on cars and home and garden supplies, among other types of products. Retail sales over last two months have been the strongest in more than two years, which shows consumers are still spending and the economy might grow more quickly in the fourth quarter than economists expect.

The report showed continued gains for online retailers. Amazon jumped $26.93, or 3.7 percent, to $746 while department stores traded lower as they continued to lose sales.

JD DEALING: Chinese e-commerce company JD.com climbed after it reported strong quarterly results. The company also said it might reorganize its JD Finance unit, which runs its internet finance business. JD.com said expects to sell its stake in the company and that JD Finance will be owned solely by Chinese investors. The stock climbed $2.91, or 12.3 percent, to $26.62.

UNPRINTABLE: 3D printer maker Stratasys tumbled after its profit and sales fell far short of estimates. The stock shed $3.13, or 15.3 percent, to $17.37.

GET YOUR MOTOR RUNNING: Auto parts retailer Advance Auto Parts reported better sales than investors were expecting, and its stock leaped $20.99, or 14.6 percent, to $163.98.

CURRENCIES: The dollar rose to 108.88 yen from 108.51 yen. The euro inched up to $1.0729 from $1.0726.

OTHER ENERGY TRADING: Wholesale gasoline rose 6 cents, or 4.5 percent, to $1.34 a gallon. Heating oil picked up 6 cents, or 4.2 percent, to $1.44 a gallon. Natural gas lost 4 cents to $2.71 per 1,000 cubic feet.

METALS: Gold rose $2.80 to $1,224.50 an ounce. Silver picked up 15 cents to $17.04 an ounce, while copper gave up 2 cents to $2.51 a pound.

OVERSEAS MARKETS: Britain’s FTSE 100 index rose 0.6 percent and the CAC-40 in France was also 0.6 percent higher. Germany’s DAX gained 0.4 percent. Seoul’s Kospi shed 0.3 percent and the Nikkei 225 in Japan finished little changed. Hong Kong’s Hang Seng gained 0.5 percent.

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