U.S. market indexes were higher on Thursday as the economy’s direction continued to appear positive and oil prices gained.
For the day the Dow Jones Industrial Average closed at 18,597.70 for a gain of 23.76 points or 0.13%. The Standard & Poor's 500 was also higher, closing at 2,187.02 for a gain of 4.80 points or 0.22%. The Nasdaq Composite closed higher at 5,240.15 for a gain of 11.49 points or 0.22%. The VIX Volatility Index was lower at 11.49 for a loss of 0.70 points or 5.74%.
In the Dow Jones Industrial Average the following stocks led gains for the day:
- Walmart (WMT, Financial) 1.85%.
- Chevron (CVX, Financial) 1.31%.
- E.I. du Pont de Nemours & Co. (DD, Financial) 1.24%.
- Exxon (XOM, Financial) 0.91%.
- Nike (NKE, Financial) 0.64%.
- International Business Machines Corp. (IBM, Financial) 0.62%.
On the economic calendar, jobless claims were lower by 4,000 at 262,000. The Conference Board’s Leading Indicators Index gained 0.4% from the previous month. Investors continued to digest the Fed’s July meeting minutes as well as the overall positive outlook for the economy. With the positive direction it appears likely that the Fed will raise rates once in 2016 potentially in September or December. Fed speeches from William Dudley, John Williams and Robert Kaplan on Thursday supported the Fed’s tightening position.
Also a positive for trading on Thursday was the rumor that OPEC may be ready to freeze output. OPEC officials will meet in September at the International Energy Forum in Algeria Sept. 26-28. For the day on Thursday oil prices gained to above $50 a barrel. Brent crude oil gained 2.03% to $50.86. WTI crude gained 3.23% to $48.30.
On Thursday energy stocks gained with the possible slowdown in production. The Energy Select Sector SPDR ETF gained 1.94% to $70.70. It was led by the following stocks on Thursday:
- Chesapeake Energy (CHK, Financial) 9.15%.
- Williams Companies (WMB, Financial) 7.87%.
- Marathon Oil (MRO, Financial) 6.24%.
- Transocean (RIG, Financial) 5.04%.
In a CNBC report Thursday, market specialists discussed the day’s oil price levels and potential for value gains in the energy sector.
Disclosure: I do not own any stocks included in this article.
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