Oil prices up to just under $40 a barrel
NEW YORK _ U.S. stocks are rising Friday morning as oil prices jumped for the second time in three days. Energy companies are getting a boost and mining and metals companies are also posting gains. Retailers are struggling after some weak sales reports.
KEEPING SCORE: The Dow Jones industrial average rose 86 points, or 0.5 per cent, to 17,627 as of 11:32 a.m. Eastern time. The Standard & Poor’s 500 index picked up 11 points, or 0.5 per cent, to 2,052. The Nasdaq composite index regained 15 points, or 0.3 per cent, to 4,862. The U.S. stock market is coming off its biggest loss in six weeks.
ENERGY: Benchmark U.S. crude rose $2.47, or 6.6 per cent, to $39.73 a barrel in New York. Brent crude, used to price international oils, gained $2.41, or 6.1 per cent, to $41.84 a barrel in London. The price of wholesale gasoline climbed 4 per cent and heating oilrose 6 per cent.
Chevron rose $1.67, or 1.8 per cent, to $96.46. ConocoPhillips picked up $1.44, or 3.6 per cent, to $41.75 and Murphy Oil advanced $1.53, or 6.3 per cent, to $25.97.
FALLING INTO THE GAP: Gap plunged $3.35, or 12.1 per cent, to $24.33 after it said all three of its big chains saw their sales drop in March. The company behind Gap, Old Navy and Banana Republic also said its levels of product inventory are high, which could lead to bigger discounts that will hurt its profits.
L Brands said it will restructure its Victoria’s Secret brand, and its stock lost $3.25, or 3.9 per cent, to $80.90.
The weak results hurt companies that sell everything from clothing for teens to handbags and department store chains. Macy’s gave up 97 cents, or 2.4 per cent, to $39.65. Coach fell 80 cents, or 2 per cent, to $39.51. Under Armour lost $1.15, or 2.6 per cent, to $43.26.
FEELING NO PAIN: Pain drug maker Depomed is rising after activist investment firm Starboard Value disclosed a 9.8 per cent stake in the company, making it one of Depomed’s largest shareholders. Last year Horizon Pharma tried to buy Depomed for about $1.1 billion, or $33 per share, but Depomed fended off that effort and Horizon dropped it in November. Depomed’s stock jumped $1.79, or 11.9 per cent, to $16.79.
MAKING GLASS: Specialty glass maker Corning said it will buy optical components maker Alliance Fiber Optic Products for $18.50 per share, or $305 million. Alliance stock surged $2.97, or 19.2 per cent, to $18.43. Corning dipped 5 cents to $20.61.
GOODBYE: Ruby Tuesday tumbled 77 cents, or 14.8 per cent, to $4.45. The restaurant chain’s earnings were disappointing and it cut its forecasts. Also said its chief financial officer will leave the company.
MINNESOTA NICE: Clothing and tools supplier Duluth Holdings rose $4.02, or 22.5 per cent, to $21.84 after reporting its fiscal fourth-quarter results.
WD-40 SLIPS: Maintenance and cleaning products company WD-40 sank after it reported disappointing quarterly sales. The stock gave up $5.49, or 5.1 per cent, to $101.55.
BONDS, CURRENCIES: Bond prices fell. The yield on the 10-year U.S. Treasury note rose to 1.73 per cent from 1.69 per cent. The dollar held steady at 108.24 yen. The euro inched up to $1.1381 from $1.1377.
OVERSEAS: Stocks in Europe also rallied. France’s CAC 40 rose 1.2 per cent and Germany’s DAX added 0.9 per cent. In Britain, the FTSE 100 climbed 0.9 per cent. Japan’s benchmark Nikkei 225 index finished 0.5 per cent higher. South Korea’s Kospi dipped 0.1 per cent. Hong Kong’s Hang Seng rose 0.5 per cent.
The Canadian Press