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Wall Street holds gains, oil makes bullish move after inventory data

Published 03/09/2016, 11:46 AM
© Reuters.  U.S. stocks trade with slight gains as oil jumps 4%
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Investing.com – U.S. stocks moved to the upside, buoyed by improved sentiment in crude after weekly inventory stockpile data extended gains in black gold during a session with a light economic calendar.

At 16:39GMT or 11:39AM ET, the Dow 30 rose 23 points or 0.13%, while the S&P 500 gained 11 points or 0.54% and the tech-heavy NASDAQ Composite traded up 17 points or 0.36%.

Oil prices surged after Wednesday’s government report on weekly crude stockpiles extended the rally in black gold.

Even though crude oil inventories registered an increase that was in line with expectations the larger-than-expected decline in gasoline inventories fueled the bullish tone in oil.

Also of note, both OPEC and non-OPEC producers planned to meet on March 20 to discuss a possible production freeze, according to a report by the Iraqi state newspaper Al-Sabah that cited an oil official from the country.

U.S. crude futures rose 4.14% to $38.01 by 16:41GMT or 11:41AM ET, while Brent oil traded up 3.10% to $40.88.

Meanwhile, the data calendar in the U.S. was relatively quiet on Wednesday, though the Mortgage Bankers Association said their mortgage market index, a measure of mortgage loan application volume, declined for the first time in four weeks by a seasonally adjusted 2.6% in the week ending January 29 to 460.6.

Meanwhile, wholesale inventories for January unexpectedly rose as sales tumbled, suggesting that efforts by businesses to reduce an inventory overhang could persist well into 2016 and restrain economic growth.

In active market movers, shares of Chipotle Mexican Grill (NYSE:CMG) lost almost 5% after the struggling restaurant operator temporarily shut a Massachusetts restaurant due to four employees falling sick.

On the upside, shares of natural pet food brand Blue Buffalo Pet Products Inc (NASDAQ:BUFF) soared close to 20% after the company reported earnings that topped Wall Street estimates late Tuesday.

Express Inc (NYSE:EXPR) jumped more than 4% after the apparel retailer’s quarterly earnings and its forecast beat consensus estimates.

Darden Restaurants (NYSE:DRI) jumped more than 3% after the restaurant chain provided a third-quarter earnings forecast that handily beat the street.

Valeant Pharmaceuticals (NYSE:VRX) rose 2% on news the drugmaker is in talks to add new board members, including a senior executive from Bill Ackman’s Pershing Square (NYSE:SQ) Capital Management LP, which is a major Valeant shareholder.

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