Marginal gains for US stocks

A jump in energy shares helped lift broader markets

U.S. stocks closed marginally higher Tuesday, 24 November 2015 as investors appeared to shrug off geopolitical fears. A jump in energy shares helped lift broader markets.

The Dow Jones Industrial Average added 19.58 points, or 0.1%, to 17,812.26. The Nasdaq Composite ended the day little changed at 5,102.81. The S&P 500 closed 2.58 points, or 0.1%, higher at 2,089.

Meanwhile, stocks opened in the red and fell to new lows after a disappointing November Consumer Confidence report crossed the wires; however, a turnaround ensued shortly thereafter with the rally uninterrupted by late-morning news of another terrorist attack in Tunisia, which prompted the country to invoke a State of Emergency. The market climbed into the green during early afternoon action, but briefly slipped back to its flat line into the close.

Nine sectors started the day in negative territory, but only four groups - financials, consumer discretionary, industrials and utilities remained in the red when the closing bell rang. On the upside, the energy sector spent the day well ahead of its peers thanks to strength in crude oil.

There was risk aversion in the marketplace on Tuesday as reports said a Russian warplane was shot down by Turkey's military. The Russian jet was near the Syrian border when Turkish fighter jets shot it down. World stock markets were pressured and U.S. Treasuries were lifted on the Turkey-Russia conflict.

The second estimate of third-quarter gross domestic product came in at up 2.1% versus the last estimate of up 1.5%. The latest reading was right in line with market expectations and had very little impact on the marketplace. There was a downward revision, though, to personal consumption expenditures, which increased 3.0% versus a previously estimated 3.2%.

Separately, the Conference Board's Consumer Confidence Index checked in at 90.4 for November, which was down sharply from an upwardly revised 99.1 reading for October (from 97.6) and well below the consensus estimate, which stood at 99.6. The downturn was driven by a drop in both the Present Situation Index (from 114.6 to 108.1) and the Expectations Index (from 88.7 to 78.6). The September Case-Shiller 20-City Index rose 5.5% (consensus +5.2%) to follow the previous increase of 5.1%.

Bullion prices ended little higher at Comex on Tuesday, 24 November 2015. News reports that Turkish jets shot down a Russian military aircraft put a modest bid into the safe-haven gold market on Tuesday. Short covering and bargain hunting were also featured after gold prices recently hit a 5.5-year low. February Comex gold was up $6.50 at $1,073.20 an ounce. March Comex silver was up $0.114 at $14.175 an ounce.

Oil futures rallied on Tuesday, 24 November 2015 with the U.S. benchmark scoring its largest one-day gain in three weeks as tensions between Turkey and Russia raised concerns over the possibility of disruptions to energy output in the region.

On the New York Mercantile Exchange, January West Texas Intermediate crude climbed by $1.12, or 2.7%, to settle at $42.87 a barrel. The increase was the largest single session percentage and dollar gain since 3 November 2015. The settlement, meanwhile, was the highest since 11 November 2015.

Traders and investors are still awaiting the mid-December FOMC meeting and anticipating the first U.S. interest rate increase in nine years.

Trading activity in the U.S. markets is likely to wind down quickly on Wednesday, due to the Thanksgiving holiday on Thursday. Friday is typically one of the slowest U.S. trading days of the year.

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