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Oil prices moved higher after OPEC+ stuck to plans to add crude to the market in November.
Apu Gomes / AFP via Getty Images
The stock market was rising Tuesday following Monday’s technology-led selloff as shares of Facebook look poised to recover some of its large losses.
Dow Jones Industrial Average
were up 167 points, or 0.5%, after the benchmark fell 323 points Monday.
S&P 500
futures were up 0.4%, while futures on the tech-heavy Nasdaq Composite, which bore the brunt of Monday’s selling, were up 0.4%.
“Futures are enjoying a modest bounce following yesterdays’ declines after a generally quiet night of news,” writes Tom Essaye, founder of Sevens Report Research.
Big tech stocks were helping the major indexes recover from steep losses. The Nasdaq was rising from a level at which buyers had previously stepped in during a summer selloff. In mid-July, the index began recovering from a sell-off when the index reached 14,274. The index closed at 14,255 before futures rose Tuesday.
Facebook (FB) was up 1.2%, with Amazon.com (AMZN) and
Apple (AAPL) up 0.5% and 0.4%, respectively. Recently, a rotation into value stocks–and out of fast-growing technology stocks–has taken hold as rising bond yields signify increased confidence in economic growth, which is a particular boost to value shares.
Facebook has been facing mounting regulatory and reputational concerns following the leak of internal documents by a whistleblower to The Wall Street Journal. Monday, it experienced outages on several of its platforms.
Overseas, Tokyo’s
Nikkei 225
fell 2.2% as traders reacted to the poor performance on Wall Street, while in Europe stocks were rebounding as the pan-European
Stoxx 600
rose 0.6%.
The selloff Monday was felt broadly and came on the back of familiar pressures, with a 1.3% decline on the S&P 500 marking the third time in five sessions that it has lost more than 1%. Investors remained concerned about inflation, supply-chain issues pinching earnings, the future of central bank stimulus, and U.S. political friction over the debt ceiling and the $3.5 trillion reconciliation package stuck in Congress.
The price of oil advanced after the OPEC+ group of state producers agreed yesterday to keep to plans for increasing crude output by 400,000 barrels a day in November. Prices were elevated again Tuesday, with futures contracts for WTI Crude oil up 1% to over $78 a barrel.
Looking ahead, the market is focusing on the September U.S. jobs report coming at the end of the week. Investors want to see that people are returning to work as pandemic-related benefits end.
Here are 10 stocks on the move Tuesday:
High crude prices look to have boosted major oil companies, with
BP (BP) up 1.5% and
Royal Dutch Shell (RDS.A) rising 0.9% in London.
Marathon Oil (MRO) gained 2.3%.
PepsiCo (PEP) stock gains 0.9% after reporting a profit of $1.79 a share, beating estimates of $1.73 a share, on sales of $20.2 billion, above expectations for $19.4 billion.
Digital Realty Trust (DLR) stock fell 0.9% after getting downgraded to Neutral from Outperform.
Albertsons Cos. (ACI) stock dropped 4% after getting downgraded to underperform from Market Perform at BMO.
Columbia Sportswear Company (COLM) stock dropped 1.7% after getting downgraded to Neutral from Buy at Bank of America.
AstraZeneca (AZN) rose 1.4% in London after the pharmaceutical company submitted an emergency-use authorization request to the Food and Drug Administration for a preventative treatment of symptomatic Covid-19.
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