NEW YORK (AP) — Stocks posted solid gains in afternoon trading Tuesday, helped by a stabilization in oil prices, which helped broadly lift energy stocks. Chipotle Mexican Grill fell on more worries about the safety of its food.
KEEPING SCORE: The Dow Jones industrial average was up 159 points, or 0.9 percent, to 17,411 as of 1:55 p.m. Eastern. The Standard & Poor’s 500 index rose 15 points, or 0.8 percent, to 2,036 and the Nasdaq composite was up 19 points, or 0.4 percent, to 4,988.
PRE-HOLIDAY DOLDRUMS: Markets are searching for direction as the flow of economic data slows dramatically until after the New Year. Investors have already had plenty of time to digest this month’s major decisions by the Federal Reserve to raise rates and by the European Central Bank to increase its stimulus efforts.
At this point, many fund managers and traders have closed their books for 2015. The holiday-shortened weeks of Christmas and New Year’s also are contributing to lower trading volumes. Most investors expect stocks and bonds to trade in a narrow range until January.
“We need a catalyst, and look to the week of the employment report to be that catalyst, but that is still two weeks away,” John Briggs, head of American fixed income strategy at RBS, wrote in a note to investors.
ENERGY: The price of oil was once again having an outsize impact on the movement of the stock market.
U.S. crude oil futures were up 46 cents to $36.28 a barrel on the New York Mercantile Exchange. Brent crude, which is used to price international oils, was down six cents to $36.29 a barrel in London. Energy stocks were among the bigger gainers Tuesday, with the energy sector of the S&P 500 index up 1.5 percent. Mining and materials stocks were also up.
Diamond Offshore rose $1.22, or 6 percent, to $21.52. Drilling rig operator Transocean rose 49 cents, or 4 percent, to $12.60
GROWTH: The Commerce Department said Tuesday that the U.S. economy grew at a slightly slower pace over the summer than the government had previously estimated. The U.S. economy expanded at a 2 percent annual rate in the July-September quarter, a bit lower than its previous estimate of 2.1 percent.
FOOD WORRIES: Chipotle Mexican Grill fell $25.01, or 4.8 percent, to $496.15 after the fast food chain disclosed additional cases of E. coli had occurred at its restaurants.
BONDS AND CURRENCIES: The euro rose to $1.0967 from $1.0926 a day earlier. The dollar was mostly unchanged against the Japanese yen at 121.04. The yield on the 10-year U.S. Treasury note rose to 2.23 percent from 2.19 percent the day before.
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