Tuesday, February 16, 2016

Wall Street ends higher, buoyed by purchases on the cheap – L’Obs

by Lewis Krauskopf

NEW YORK (Reuters) – The New York Stock Exchange ended sharply higher Tuesday, extending Friday’s rebound after a long weekend of three days despite the relapse oil following an agreement on the production of gel that has not convinced investors.

Wall Street, closed Monday for Presidents Day, took advantage of a good current purchases account as well and caught the increase recorded the previous day by the other major places.

the Dow Jones took 222.57 points, or 1.39%, to 16,196.41 points. The S & amp; P 500, wider, gained 30.80 points, or 1.65%, to 1895.58 points. The Nasdaq Composite advanced 98.44 point (+ 2.27%) to 4435.96 points.

“We are seeing purchases with it but that is not enough to turn the bearish sentiment” says Art Hogan, head of strategy at Wunderlich Securities.

oil prices, which were strongly on the upside in waiting for a decision, were down sharply after the agreement, announced after an impromptu meeting in Doha.

Four of the world’s oil producing countries have announced having agreed to freeze production of crude but provided it is followed by d ‘ other major exporters, a major potential sticking point with Iran since Tehran intends to actually increase its extraction.

North sea Brent, who was passed over 35 dollars a barrel in the morning, hovering around 32.30 dollars a barrel on Wall Street, down 3.3%, and US light crude lost 1.15% to 29.10 dollars.

the fall of oil is one of the reasons for the turmoil in financial markets since the beginning of the year, with the failure of China’s growth and uncertainty about the timing of the rise in US interest rates. The S & amp; P remains lower by 7.3% since early 2016

“Correlation UNHEALTHY”

“I think it’s great news to see the US market. ride a day the oil decline, “said Jake Dollarhide Longbow Asset Management. “It could be that we finally went out the unhealthy correlation between the two, which put the whole meaning financial world upside down.”

The index of the sector related to energy took 0.8 % while underperforming the S & amp;. P-500

the cyclical consumer and technology were the first to make purchases with it

. the banking sector also continued to rebound: Goldman Sachs, Morgan Stanley and Bank of America took 2% to 2.7% Similarly, Apple gained 2.82%, 2.76% and Amazon.com Xerox 2. 85%.

Elsewhere, the US specialist ADT electronic security systems surged 47.53% after the announcement of the bid for seven billion dollars (6.27 billion euros) of private equity fund Apollo Global Management, which takes 5.37% for him.

Groupon specialist group purchasing on the internet, one of the highest volumes on Nasdaq, s ‘soared 41.18% after announcing the acquisition of 5.6% stake in Alibaba, became its fourth largest shareholder. The Alibaba action has 8.87% of its side.

Restaurant Brands International took 5.65% after posting a quarterly profit better than expected, thanks to new products in the fast-food chain Burger King and chain Tim Hortons coffee.

about 8.6 billion shares changed hands on US markets, a volume less than the daily average of 9.6 billion the last 20 days , according to data from Thomson Reuters.

on the foreign exchange market, the yen gained ground against the dollar after the announcement of the agreement on oil, which has limited appetite risk, while still far from its peak of 15 months, to 111.99 per dollar, reached last week. The dollar gained still 1% at the close of Wall Street against a reference currency basket.

US Treasury bonds and gold, which posted its largest increase weekly in four years last week, were abandoned in favor of risky assets.

(with Tanya Agrawal in Bangalore, Juliette Rouillon for the French service)


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