Stocks open higher as oil spikes
U.S. stocks look set to get back on the winning track as equity prices opened higher Thursday, helped by a spike in oil prices caused by production outages in Canada due to wildfires.
The Dow Jones industrial average kicks off trading Thursday riding a two-session losing streak and at its lowest level in almost four weeks. The U.S. stock market, which had been in full-blown rally mode since the lows in mid-February, has suddenly lost momentum as investors worry about slowing global growth and the efficacy of central bank policies around the world.
The Dow opened up about 35 points, or 0.2%. The broader S&P 500 was 0.3% higher and the Nasdaq composite was up 0.3%. The technology-packed Nasdaq starts today’s trading session down 9.5% from its July 2015 record closing high of 5218.86 and within striking distance of falling back into correction territory, defined as a drop of 10% or more from a high.
U.S. produced crude prices are on the rise as ragin forest fires in Alberta, a key oil sands region, cause production outages. Crude prices were up $1.77 per barrel, or 4%, to $45.15. S&P’s energy sector is up 1.6%, tracking the rise in crude prices to the upside.
Wall Street is also looking ahead to the April jobs report, set for release Friday at 8:30 a.m. ET. Economists are forecasting 200,000 new jobs created last month, but a weaker-than-expected reading on new jobs created in the private sector on Wednesday has made investors wary of a weaker number. Before Thursday’s opening bell, the number of Americans lining up for first-time jobless benefits jumped more than expected to 274,000, up 17,000 from the prior week.
Overseas markets were mixed and relatively quiet. Stocks closed 0.4% lower in Hong Kong. And shares rose 0.2% in mainland China.
Shares in Europe were mixed. The broad Stoxx Europe 600 was 0.1% higher, while stocks in the German DAX fell 0.1% and the CAC 40 in Paris was off 0.3%.
Source: USA Today
