By Ellie Ismailidou and Carla Mozee, MarketWatch
U.S. airliners and online-travel brands take a hit after Turkey
downs Russian jet
U.S. stocks closed slightly higher Tuesday, buoyed by a jump in
oil prices after Turkey's downing of a Russian warplane raised
concerns over the possibility of disruptions to energy output in
the region.
Gains by both the Dow industrials and the S&P 500 were
concentrated in the energy and materials sectors, as a 2.7% jump in
crude prices , the largest one-day gain in three weeks
(http://www.marketwatch.com/story/oil-prices-rise-as-investors-go-bargain-hunting-2015-11-24),
led to a 2.2% jump in energy shares, which helped lift broader
markets.
The energy sector was the best performer on the S&P 500,
followed by materials and health care, and led by a 6.8% rise in
the shares of Chesapeake Energy Corporation (CHK), a 5.5% jump in
the shares of Marathon Oil Corporation (MRO) and a 3.8% increase in
those of Murphy Oil Corporation (MUR)
The S&P 500 ended the session up 2.55 points, or 0.1%, at
2,089.14. The Dow Jones Industrial Average rose 19.51 points, or
0.1%, to settle at 17,812.19, and the Nasdaq Composite closed up
0.33 point, or less than 0.1%, at 5,102.81.
Earlier in the day, all indexes were in the red, as investors
took in a flurry of mixed U.S. economic data amid fresh global
tensions after Turkey shot down a Russian warplane near the Syrian
border
(http://www.marketwatch.com/story/turkey-shoots-down-jet-fighter-near-syrian-border-2015-11-24).
"There was a knee-jerk reaction" in the markets following the
news, said Mike van Dulken, head of research at Accendo
Markets.
Travel-related companies took a hit, with shares of United
Continental Holdings, Inc. (UAL) falling 3%, Southwest Airlines Co.
(LUV) dropping 2.6% and Delta Air Lines, Inc. (DAL) dropping 3%.
Shares of global online travel company Expedia, Inc. (EXPE) lost
2.9% while Priceline Group Inc. (PCLN) shares fell 1.9%.
President Barack Obama and French President François Hollande
held a joint news conference around midday to discuss the response
to the Paris terror attacks.
The joint statement "alleviated in part any lingering concerns
regarding the West's reaction to terrorist events" which, along
with the jump in oil prices in a week otherwise marked by low
trading volumes, helped push the market higher, said Michael Arone,
chief investment strategist at State Street Global Advisors.
Volume will likely become more subdued as the market heads
toward Thanksgiving Day on Thursday. Trading will closed for the
holiday and reopen for a half-day on Friday.
Read: When do markets close around Thanksgiving?
(http://www.marketwatch.com/story/when-do-markets-close-around-thanksgiving-2015-11-23)
Earlier on Tuesday morning, the U.S. government said the U.S.
economy grew at a somewhat faster 2.1% pace in the third quarter
(http://www.marketwatch.com/story/us-third-quarter-gdp-growth-raised-to-21-2015-11-24)instead
of the initial reading of 1.5%, mainly due to a jump in the value
of business inventories.
But consumer spending, the main engine of U.S. economic growth,
grew below expectations
(http://www.marketwatch.com/story/third-quarter-gdp-upped-to-21-from-15-2015-11-24),
while inflation as measured by the personal consumption expenditure
index increased at a 1.3% annual clip, well below the Federal
Reserve's 2% target. Meanwhile, consumer confidence fell
(https://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&cad=rja&uact=8&ved=0ahUKEwj4g87Q4qnJAhVBURoKHYRxCHkQqQIIHTAA&url=http%3A%2F%2Fwww.marketwatch.com%2Fstory%2Fconsumer-confidence-falls-to-lowest-level-in-14-months-2015-11-24&usg=AFQjCNFKuGP_gqtQiRKLQTzPdA48XVTcTA&sig2=umurisp4pFXNf0ShhnXlfA&bvm=bv.108194040,d.dmo)in
November to the lowest level in more than a year.
Tuesday's data were largely priced into the market and confirmed
that "the U.S. economy is continuing to grow at a moderate pace
that could support an interest-rate hike," said Chris
Faulkner-MacDonagh, market strategist at Standard Life
Investments.
Other markets: European stocks posted a second day of losses
after the Turkish downing of the jet, with Russia's Micex index
losing 3.1%, its biggest decline since March 10, according to
FactSet data. Oil prices gained in the aftermath
(http://www.marketwatch.com/story/oil-prices-rise-as-investors-go-bargain-hunting-2015-11-24),
up 2.7%, to settle at $42.87 a barrel.
In Asia, Australian stocks
(http://www.marketwatch.com/story/asian-stocks-under-pressure-from-weak-commodities-prices-2015-11-24)
stood out with a 1% loss, as a slide in commodity prices put
pressure on the resources-heavy market.
Gold prices found some strength, rebounding somewhat from a
nearly six-year low. The U.S. dollar traded down 0.2% against major
rivals.
Data: In other U.S. data, home prices picked up speed in
September
(http://www.marketwatch.com/story/home-price-gains-accelerate-in-september-spcase-shiller-says-2015-11-24),
according to the closely watched S&P/Case-Shiller index.
Meanwhile, the nation's trade deficit also widened in the third
quarter, the U.S. government said Tuesday, as imports were revised
up but exports were weaker than previously reported.
Stocks to watch: PMC-Sierra Inc. (PMCS) shares dropped 2.2%
after the chip company agreed to be purchased by Microsemi Corp
(http://www.marketwatch.com/story/microsemi-agrees-to-buy-pmc-sierra-in-25-billion-cash-and-stock-deal-2015-11-24).(MSCC)
in a cash-and-stock deal valued at about $2.5 billion. Meanwhile,
Microsemi's shares fell nearly 6.5%.
Boulder Brands Inc. (BDBD) shares gained 8.5% after the maker of
Smart Balance butter spreads agreed to be acquired by Pinnacle
Foods Inc. (PF) for $975 million, including debt.
Shares of Signet Jewelers Limited (SIG) closed down 4.1% after
the Bermuda-based company's third-quarter results missed
expectations
(http://www.marketwatch.com/story/signet-jewelers-misses-expectations-in-q3-2015-11-24).
Meanwhile, Tiffany & Co. (TIF) shares gained 4.2 after the
open, reversing a premarket drop after the high-end jeweler's
quarterly profit and sales fell,
(http://www.marketwatch.com/story/tiffany-profit-and-sales-fall-as-strong-dollar-weighs-2015-11-24)
weighed by strength in the U.S. dollar.
Campbell Soup Co. (CPB) climbed 3% after the largest U.S. soup
company by sales elevated its full-year profit outlook
(http://www.marketwatch.com/story/campbell-soup-lifts-outlook-but-sales-slow-2015-11-24),
as deeper cost cuts help it offset slowing sales.
Chico's FAS Inc. (CHS) closed down 0.3%, after falling earlier
as much as 3.3% following news that the company's board approved a
new share buyback of up to $300 million
(http://www.marketwatch.com/story/chicos-to-buy-back-up-to-300-million-of-shares-raises-quarterly-dividend-33-2015-11-24).
The apparel retailer also raised its quarterly dividend 3.3%.
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(END) Dow Jones Newswires
November 24, 2015 16:41 ET (21:41 GMT)
Copyright (c) 2015 Dow Jones & Company, Inc.
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