Stock Market News For August 19, 2016

Benchmarks ended slightly higher on Thursday, boosted by gains in energy shares. Rally in oil prices helped energy shares gain traction. Oil prices officially entered into a bull market; thanks to fall in stockpiles and increase in expectations that top oil producing countries will cap output. Amid soaring oil prices, investors also digested news that Wal-Mart was raising its full-year guidance, drop in jobless claims as well as minutes from the Fed’s July meeting.

For a look at the issues currently facing the markets, make sure to read today’s Ahead of Wall Street article.

The Dow Jones Industrial Average (DJI) increased 0.1%, to close at 18,597.70. The S&P 500 rose 0.2% to close at 2,187.02. The tech-laden Nasdaq Composite Index closed at 5,240.15, gaining 0.2%. The fear-gauge CBOE Volatility Index (VIX) decreased 6.2% to settle at 11.43. A total of around 5.9 billion shares were traded on Thursday, lower than the last 20-session average of 6.4 billion shares. Advancers outpaced declining stocks on the NYSE. For 68% stocks that advanced, 29% declined.

What Helped Stocks Notch Marginal Gains?

Stocks eked out tepid gains as U.S. oil price stampeded into a bull-market territory yesterday. The WTI crude advanced 3.1% to settle at $48.22 a barrel, a jump of more than 20% from its recent settlement low of $39.51 on Aug 2. Adding fire to the rally was a drop in domestic crude inventories by 2.5 million barrels in the week ending Aug 12. Both Russia and Saudi Arabia’s willingness to consider a collective production cap also pushed oil prices higher.

Energy shares gained the most among the S&P 500 sectors due to rise in oil prices. The Energy Select Sector SPDR (XLE (NYSE:XLE)) gained 2.1%, with Dow components Chevron Corporation (NYSE:CVX) (CVX) and Exxon Mobil Corporation (NYSE:XOM) (XOM) increasing 1.3% and 0.9%, respectively.

Investors also digested an upbeat outlook from another Dow component, Wal-Mart Stores (NYSE:WMT), Inc. (WMT). The retailer now expects its earnings for fiscal 2017 to come in within the range of $4.15−$4.35 per share, up from $4.00−$4.30 per share expected previously. Shares of Wal-Mart gained 1.9%. (Read: Wal-Mart Q2 Earnings and Sales Beat on Comps Gain)

Meanwhile, number of Americans applying for unemployment benefits dropped last week, while investors kept an eye on the annual meeting of central bank chiefs to be held in Jackson Hole, Wyoming, next week. Fed officials at their July meeting played the waiting game over a rate hike, even though some argued that a stronger labor market and diminishing near-term risks to the economy call for an imminent decision on this count.

Stocks that Made Headlines

Deere Tops Q3 Earnings, Misses Sales, Revises View

Deere & Company’s (DE) third-quarter fiscal 2016 earnings topped the Zacks Consensus Estimate, but, net sales of equipment operations lagged. (Read more)

Gap Tops Q2 Earnings & Sales; Stock Down on View Cut

The Gap Inc (NYSE:GPS). (GPS) delivered better-than-expected top- and bottom-line results in second-quarter fiscal 2016, but, the management curtailed its earnings outlook for fiscal 2016. (Read more)

Ross Stores (NASDAQ:ROST) Tops Q2 Earnings & Sales, Stock Gains

Ross Stores Inc. (ROST) posted robust second-quarter fiscal 2016 results on impressive dd’s DISCOUNT performance as well as the improvement made in the ladies’ apparel business. (Read more)

T-Mobile US Launches Unlimited Data Plan at $70

T-Mobile US (TMUS) will do away with all its existing data plans and instead replace it with ‘T-Mobile One’ plan which is supposed to give its customers endless pool of LTE data without any restrictions. (Read more)

FDA OKs Edwards Lifesciences’ Sapien 3 for Extended Use

The FDA granted an expanded indication for Edwards Lifesciences Corp (NYSE:EW).’s (EW) leading products – Sapien 3 and Sapien XT transcatheter heart valves (THVs) – for treating severe, symptomatic aortic stenosis (AS) patients. (Read more)

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