Stocks carried modest gains into the close Wednesday, as oil prices rallied after OPEC reportedly struck a deal to cut production in November.
The Dow Jones industrial average rose 0.6%, while the S&P 500 gained 0.5% to recover its 50-day moving average. The Nasdaq added 0.2%. Volume was higher across the board vs. Tuesday, according to preliminary data.
Oil stocks led the upside in the stock market today as West Texas intermediate crude prices surged 5% to $46.86 a barrel. Steel and metal ores miners also scored big gains. Those stocks helped the S&P 500 outperform.
Exxon Mobil (XOM) scored the biggest gain in the Dow with a 4% jump to retake its 200-day moving average in heavy volume. Shares are now 1% below the 50-day line. Chevron (CVX) wasn't far behind, rising 3% in busy trade and reclaiming its 50-day line. The stock is working on a flat base with a potential 107.68 entry.
But Nike (NKE), down 4% in rapid turnover, was the biggest mover on the blue chip index. Late Tuesday, the athletic shoe giant reported blowout fiscal Q1 results. But its futures orders were weaker than expected. Brean Capital on Wednesday cut its Nike rating to hold, while Telsey Advisory Group and FBR lowered their price targets.
But retailers, restaurants and beverage stocks underperformed. In the restaurant space, Sonic (SONC) gapped down and fell 7% in hefty trade after the fast-food chain said its quarterly earnings would be lower than expected. The stock fell sharply below its 50-day line, where it ran into resistance last week.
Jack in the Box (JACK), down 3% Tuesday, fell 2% more Wednesday in fast turnover, cracking its 50-day line for the first time since May 11. It remains near all-time highs at 6% below its peak.
A busy economic slate Thursday includes Q2 GDP, weekly jobless claims and the National Association of Realtors' pending home sales for August. Fed chief Janet Yellen and other Fed officials are slated to speak throughout the day.
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