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Oil surge spurs Wall Street turnaround, sends Russell 2000 to record

Reuters 

By Medha Singh

(Reuters) - Energy and industrial stocks led Wall Street higher on Thursday and the small-cap hit a record, even as a rise in U.S. bond yields to fresh seven-year highs suggested more competition for equities and investors fretted over geopolitics.

The rose 1.41 percent, giving the benchmark 500 the biggest boost, as Brent crude hit $80 per barrel for the first time since November 2014 as renewed U.S. sanctions threatened a fall in exports from in an already tightening market.

Smaller companies continued this year's trend of outperforming their larger rivals with the reaching a record high for the second session in a row.

Data showed the number of Americans on unemployment rolls last week fell to the lowest since 1973. Other data showed a pickup in factory activity in the mid-region this month, with manufacturers saying they were asking for higher prices for their products.

The industrial sector was up 0.61 percent, the second-biggest gainer among the 11 sectors.

"You have kind of a mixed bag of earnings numbers ... the economic data generally speaking was pretty good and that's leading to a little bit of mild buying in the market," said Paul Nolte, at in

On the Russell 2000, Nolte said, "I think you're starting to see people come into that because it's the only that has put in a new high and you've got some interest."

At 11:46 a.m. EDT, the was up 30.33 points, or 0.12 percent, at 24,799.26, the 500 was up 5.79 points, or 0.21 percent, at 2,728.25 and the was up 14.08 points, or 0.19 percent, at 7,412.37.

The three rate-sensitive sectors, real-estate, utilities and telecoms, were slightly lower.

The market had opened in the red, weighed by a drop in and on jitters as U.S. 10-year Treasury yields hovered at 7-year highs and the and started trade talks to try to avert a damaging tariff war.

expects to bring a proposal to the talks which would "extend the conversation and permit additional negotiations".

Keeping the gains in check were Cisco's 2.8 percent drop, the most on the Dow, after the company's forecast indicated its transition to a business was a work in progress.

slipped 1.1 percent, reversing premarket gains, after it said profit margins were under pressure, despite sales and earnings beating expectations.

tumbled 10.7 percent after its same-store sales missed estimates and the company cut its full-year profit forecast.

Advancing issues outnumbered decliners for a 1.55-to-1 ratio on the NYSE and for a 2.05-to-1 ratio on the Nasdaq.

The S&P recorded 22 new 52-week highs and four new lows, while the Nasdaq recorded 108 new highs and 20 new lows.

(Reporting by in Bengaluru; Editing by and Shounak Dasgupta)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, May 17 2018. 21:40 IST
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