Stock rally continues: Dow up more than 200 in 3rd day of gains – USA TODAY

11 months ago Comments Off on Stock rally continues: Dow up more than 200 in 3rd day of gains – USA TODAY

Share This Story!

Let friends in your social network know what you are reading about

Stock rally continues: Dow up more than 200 in 3rd day of gains

The Dow is on track for its first three up days in a row since December.




A link has been posted to your Facebook feed.

Join the Nation’s Conversation

To find out more about Facebook commenting please read the Conversation Guidelines and FAQs



U.S. equities opened higher on Wednesday as oil prices rallied on hopes Iran would agree to a production freeze. OPEC leaders are meeting in Tehran on Wednesday.

Stocks surged Wednesday following a jump in oil prices as Wall Street looks to extend the market rally to three days and recoup some of the steep losses suffered in what has been a challenging start to the year.

Stocks were again keying off action in the oil patch, with stocks carving out gains alongside a 5% jump in the price of a barrel of U.S.-produced crude to back above $30. Wall Street is closely monitoring talks in Tehran, where energy ministers from Venezuela, Iraq and Qatar were meeting with their Iranian counterpart Bijan Zanganeh on Wednesday in an effort to reach an agreement to restrain oil output and prop up falling prices, Reuters reported.

Investors, of course, hope a deal can be sealed to start the process of capping oil production and beginning the process of stabilizing prices, which have been in freefall for most of the new year, dragging down the energy complex in the process.

In morning trading, the Dow Jones industrial average was up 210 points, or 1.3%, and on track to post its first three-day winning streak since December. The broader Standard & Poor’s 500 stock index was 1.5% higher and the technology-dominated Nasdaq composite was up 1.8%.

U.S.-produced crude was rebounding from a drop yesterday, rising 5.2% to $30.54 a barrel. Oil prices are trading in a volatile pattern as investors handicap whether the move by Saudi Arabia and Russia to freeze production will get buy-in from Iran and Iraq and actually move the needle towards few barrels being produced on a daily basis.

Rising oil prices also gave European shares a big boost Wednesday. The broad Stoxx Europe 600 index jumped 2.7%, the DAX in Germany was 2.7% higher and the CAC 40 in Paris was up 3.1%.

Stocks are finally bouncing higher after getting deeply oversold. Wall Street is debating whether this rally marks the end of the tumult or is simply a short-term bounce in an ongoing down market.

“This whipsaw-like action is making it very difficult to determine the near-term direction of the stock market,” Andrew Adams of Raymond James told clients in an early-morning research note. “The bulls are taking their sweet time deciding if we have already fallen enough to create substantial buying opportunities, while the bears point to a whole host of negative items from both a fundamental and technical basis that continue to pressure the broad market.”

Still, given the long duration of what Adams refers to as a “selling stampede” and the market’s oversold condition, he says he does “hold out hope that buying demand is going to pick up here soon as stocks attempt to create yet another ‘double bottom’ or ‘W’ pattern like we saw last fall.”

Wall Street was also digesting incoming economic data for January. Housing starts fell 3.8% versus a drop of 2.8% in December. And inflation at the wholesale level last month rose 0.1%.

In Asia, stocks were mixed. The Nikkei 225 in Japan fell 1.4%. Hong Kong’s Hang Seng index slumped 1%, while mainland China’s Shanghai composite index rose 1.1%.

0) { %>

0) { %>

0) { %>


Stock rally continues: Dow up more than 200 in 3rd day of gains – USA TODAY

Related Posts

Amazon hammered over sales of counterfeit items

6 months ago
The development and growth of online megastores like, eBay and Alibaba have led to increased numbers of counterfeit items being sold. Stock quotes, financial tools, news and analysis... Read More

US retail sales rise amid higher wages, job gains – CBS News

12 months ago
WASHINGTON — U.S. retail sales rose in January for a third monthly increase as labor-market gains and sliding gasoline costs helped in loosening purse strings following a slowdown in... Read More

The U.S. economy is suffering from the same old problem

6 months ago
A pair of better than expected non-farm payrolls reports affirms that the U.S. economy doesn't have a new problem, that is, a rapid slowdown in job growth — just... Read More

Musk says SolarCity deal about synergy but it may be about debt

7 months ago
<p>Elon Musk’s $ 2.86 billion bid for SolarCity Corp. may be as much about rescuing the company from swelling debt as creating a one-stop clean-energy powerhouse with Tesla Motors... Read More
Real Time Web Analytics