June 24, 2024

Stocks and Bonds: As Commodities Rebound, Major Indexes Close Higher

The Standard Poor’s 500-stock index rose 0.49 percent, or 6.57 points, to 1,348.65, reversing a decline from earlier in the day. The Dow Jones industrial average added 65.89 points, or 0.52 percent, to 12,695.92. The Dollar Index, which tracks the currency against the currencies of six major trading partners, declined 0.2 percent, to 75.19. The Nasdaq rose 17.98 points, or 0.63 percent, to 2,863.04.

“The more commodity-sensitive industries have been driving the market either up or down,” said Wasif Latif, vice president for equity investments at USAA Investment Management in San Antonio. “One sector’s gain could be another sector’s pain. The recent decline in oil may not be that good for energy companies. However, consumer staples will do better because of lower input costs.”

The S. P. 500 has fallen 1.1 percent this month as gauges of energy and raw materials producers have slumped at least 4.2 percent. Still, the index is up 7.2 percent this year amid government stimulus measures and higher-than-estimated profits.

Earlier in the day, stocks fell after China raised reserve ratios for its largest lenders by 0.5 percentage point to a record 21 percent. The central bank’s announcement followed reports on Wednesday showing inflation and lending exceeded economists’ estimates in April, with consumer prices rising more than 5 percent for a second month.

Commodities rebounded from earlier losses as the dollar reversed a gain, bolstering the appeal of energy and raw-materials as alternative investments.

Cliffs Natural Resources, a large iron-ore producer, gained 1.7 percent to $87.19. Schlumberger, the oil-field services provider, added 1.5 percent to $83.52.

Symantec climbed 5.2 percent to $20.42. The company, a maker of security software, forecast higher revenue than analysts had predicted, bolstered by demand for data backup cloud-computing programs, and the effect of a weaker dollar on overseas sales.

Tyson added 4.6 percent, to $18.84, after it said it planned to buy back up to 22.5 million shares.

Cisco Systems tumbled 4.8 percent to $16.93. The company is revamping management and scaling back some businesses after losing share to rivals like Hewlett-Packard.

The yield on Treasury’s 10-year note rose to 3.22 percent, from 3.16 percent late Wednesday.

Article source: http://feeds.nytimes.com/click.phdo?i=001152a89aa76afdab42cfa46d4ccb86

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