By Barbara Kollmeyer, MarketWatch , Ryan Vlastelica
Intel falls, but Morgan Stanley is the latest financial to top
forecasts
U.S. stocks edged higher on Wednesday, boosted by a rally in the
energy sector and the latest financial stock to top expectations in
its earnings, though weak housing data and a disappointing tech
outlook limited the day's advance.
Crude prices
(http://www.marketwatch.com/story/oil-prices-rise-on-signs-crude-inventories-likely-fell-last-week-2016-10-19)rose
2.6%
(http://www.marketwatch.com/story/oil-prices-rise-on-signs-crude-inventories-likely-fell-last-week-2016-10-19)
after Saudi Arabia's oil minister, Khalid A. Al-Falih, said
improving fundamentals and market rebalancing would continue to aid
the recovery in the commodity. The Saudi minister said many
countries, including those that aren't a member of the Organization
of the Petroleum Exporting Countries, are willing to join a
potential deal to cut global oil output
(http://www.marketwatch.com/story/saudi-oil-minister-many-non-opec-countries-willing-to-join-output-deal-2016-10-19),
which is seen as necessary to addressing oversupply in the market.
His comments helped pushed crude futures to their highest level
since July, which delivered a boost to energy companies. The
S&P energy sector rose 1.9%, by far the biggest gainer on the
day.
Chevron Corp.(CVX) rose 1.8% to $103.60, the biggest riser among
Dow components.
On the downside, Intel Corp. (INTC) was worst performer on both
the Dow and the S&P 500 after it reported a disappointing
revenue outlook
(http://www.marketwatch.com/story/intels-earnings-up-but-outlook-disappoints-2016-10-18),
even as its third-quarter earnings rose almost 9%. The stock sank
5.7% to $35.58 in its biggest one-day drop since January.
Read:The Intel money pit: Renovations cost more, no results in
sight
(http://www.marketwatch.com/story/the-intel-money-pit-renovations-cost-more-no-results-in-sight-2016-10-18)
The Dow Jones Industrial Average gained 67 points, or 0.4%, to
18,230. The S&P 500 index rose 5 points, or 0.3%, to 2,145. The
tech-heavy Nasdaq Composite Index , however, was trading flat at
5,242.
Major stock-market indexes have lately mostly been trading
within a narrow range ahead of the U.S. presidential election
between Democratic nominee Hillary Clinton and Republican candidate
Donald Trump. Currently, the S&P 500 is about 2.2% below its
intraday record.
See also: The stock market has been losing its grip on rallies
at 3 distinct times during the day
(http://www.marketwatch.com/story/the-stock-market-has-been-losing-its-grip-on-rallies-at-3-key-times-during-the-day-2016-10-18)
"We're not in a bad position, but we haven't made much progress
since July, and I don't see that changing with the big election we
have coming up, which has a lot of people uneasy," said Randy
Frederick, managing director of trading and derivatives for Charles
Schwab in Austin, Texas.
In what could be a focus for some traders, the third and final
presidential debate will take place Wednesday evening.
Read: Wall Street wants Donald Trump to be beaten, but not
crushed
(http://www.marketwatch.com/story/this-is-wall-streets-new-election-black-swan-2016-10-18)
(http://www.marketwatch.com/story/this-is-wall-streets-new-election-black-swan-2016-10-18)Also
read:Irish bookie already paying out on Hillary Clinton victory
bets
(http://www.marketwatch.com/story/irish-bookie-already-paying-out-on-hillary-clinton-victory-bets-2016-10-18)
Morgan Stanley (MS) rose 0.7% to $32.52 after it reported a
profit that beat analyst forecasts
(http://www.marketwatch.com/story/morgan-stanley-profit-boosted-by-trading-revenue-2016-10-19).
The stock was the latest in a string of financials--including
Goldman Sachs Group Inc.(GS) and J.P. Morgan Chase &
Co(JPM)--that topped consensus expectations and boosted equities
(http://www.marketwatch.com/story/wall-street-stocks-point-higher-as-goldman-results-inflation-data-loom-2016-10-18).
The S&P financial sector rose 0.5%.
"Not only have these financials beat, but they've beat pretty
solidly, which has led to some upside," Frederick said.
Among other earnings, Reynolds American Inc.(RAI) sank 4.6%
after earnings and revenue fell short
(http://www.marketwatch.com/story/reynolds-american-misses-third-quarter-earnings-revenue-expectations-2016-10-19).
On the upside, Halliburton Co.(HAL)(HAL) rose 3.3% to $48.65 on its
results.
In the latest economic data, housing stars fell 9% in August
(http://www.marketwatch.com/story/housing-starts-tumble-9-as-sturdy-recovery-remains-elusive-2016-10-19),
reaching the slowest pace since March 2015. The data was a setback
for the housing market, though the starts were offset by a rise in
monthly building permits.
Wednesday also marks the 29th anniversary of Black Monday, when
on Oct. 19, 1987, stock markets crashed around the world.
Read:Chart watcher: stop comparing 2016 stock market to 1987
(http://www.marketwatch.com/story/chart-watcher-stop-comparing-2016-stock-market-to-1987-2016-10-18)
(https://twitter.com/sarasjolin/status/788656012299468800)
Among other markets, gold rose 0.6% while the ICE dollar index
was flat.
Read:Why gold will rise no matter who becomes the next president
(http://www.marketwatch.com/story/why-gold-will-rise-no-matter-who-becomes-the-next-us-president-2016-10-18)
(http://www.marketwatch.com/story/dollar-slips-though-move-reduced-after-better-than-expected-china-data-2016-10-19)The
Stoxx Europe 600 index
(http://www.marketwatch.com/story/european-stocks-slip-but-energy-shares-track-gains-in-oil-prices-2016-10-19)
logged moderate gains, while Asian stocks
(http://www.marketwatch.com/story/asian-markets-rise-as-china-reports-healthy-growth-2016-10-18)
finished mixed. The Shanghai Composite Index closed flat after data
showed better-than-expected growth
(http://www.marketwatch.com/story/chinas-economy-grows-steadily-in-q3-2016-10-18)
in China, but slower industrial production.
(END) Dow Jones Newswires
October 19, 2016 11:23 ET (15:23 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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