Dow ends losing streak as oil shares gain

New York: The Dow snapped an eight-session losing streak on Friday with petroleum giants Exxon Mobil and Chevron scoring strong gains after OPEC agreed to only a modest production increase.

The Dow Jones Industrial Average rose 0.5 percent to 24,580.89. The index had fallen the last eight days amid trade war fears.

The broad-based S&P 500 added 0.2 percent at 2,754.88, while the tech-rich Nasdaq Composite Index shed 0.3 percent to 7,692.82.

Ministers with the Organization of the Petroleum Exporting Countries agreed to ramp up oil production by around a million barrels a day from July.

However, some ministers acknowledged that the actual amount of additional produced will be lower than that amount. Oil prices rose solidly following the agreement, with analysts saying the output increase would be smaller than expected.

Dow members ExxonMobil and Chevron both rose about two percent, while oil services giants Halliburton and Schlumberger both climbed nearly three percent.

Trade issues remained a lingering concern.

US President Donald Trump threatened to impose a 20 percent tariff on cars imported from the European Union after the bloc’s additional tariffs on dozens of American products took effect.

Gregori Volokhine, president of Meeschaert Capital Markets, said investors remained on guard over trade tensions between the United States and key trading partners.

“Earnings season is coming,” he said. “If we stay in this state of negative suspension on trade, most of the companies will be really cautious with their comments,” which could lead stocks lower.

Software company Red Hat sank 14.1 percent after projecting second-quarter profits and revenues that lagged analyst expectations.

AFP

This post was last modified on June 24, 2018, 8:19 pm