Led by a rally in the energy complex, the Dow Jones Industrial Average was set to break an eight-day losing streak with a gain of more than 100 points. Shares of component stocks Exxon Mobile ( XOM ) and Chevron ( CVX ) are trading sharply higher at midday on Friday in reaction to OPEC's announcement to increase production by an amount that was less than expected. Meanwhile, the Nasdaq is lower for a second day and could see an end to its four-week winning streak as internet retailers continue to lose ground following Thursday's Supreme Court decision regarding internet sales tax.
All of the major market indices except the small cap are indicated to close lower for the week. The Russell 2000 was set to close higher for an eighth straight week.
Oil futures raced higher mid-morning Friday after the Organization of the Petroleum Exporting Countries agreed to a 700,000 barrel per day hike in oil production, less than the 1 million bpd hike tossed around earlier and more than half the production increase that was originally expected. The subsequent reaction in oil markets drove Brent crude almost 3% higher and West Texas intermediate up by nearly 4% and to its highest level in three weeks.
The rally in oil futures overshadowed mixed data from US purchasing managers. The preliminary June services sector PMI dipped to a two-month low of 56.5 from May's 56.8, but came in slightly better than expectations. The manufacturing index dropped to a seven-month low of 54.6 from 56.4 previously, but above the 56.5 estimates.
Automobile stocks were roiled by President Donald Trump's threat to hike imported cars from the European Union by 20% if the EU doesn't remove existing trade barriers to the US. Shares of Germany's Daimler slid to their lowest level in almost two years, dragging down the entire auto sector with General Motors ( GM ) and Ford ( F ) trading lower in anticipation of retaliatory tariffs.
Germany's DAX felt the brunt of the market's reaction leaving the index with only a modest gain at the close. The Euro-Stoxx and France's CAC-40 were also pressured by the news but losses were mitigated by gains in the energy and financial sector, the latter on the outcome to the Federal Reserve's banking stress test.
Crude oil was up $2.70 to $68.24 per barrel. Natural gas was down $0.04 to $2.93 per 1 million BTU. Gold was unchanged at $1,270.50 an ounce, while silver was up $0.07 to $16.40 an ounce. Copper was unchanged at $3.02 per pound.
Among energy ETFs, the United States Oil Fund was up 4.17% to $13.86 with the United States Natural Gas Fund was down 1.41% to $23.76. Among precious-metal funds, the Market Vectors Gold Miners ETF was up 1.48% to 22.18 while SPDR Gold Shares were up 0.47% to $120.19. The iShares Silver Trust was up 0.47% to $15.431.41.
Here's where the markets stand at midday:
NYSE Composite Index was up 103.44 points (+0.82%) to 12,663.67
Dow Jones Industrial Index was up 185.55 points (+0.76%) to 24,647.25
S&P 500 was up 10.96 points (+0.40%) to 2,760.83
Nasdaq Composite Index was down 6.47 points (-0.08%) to 7,706.11
FTSE 100 was up 125.83 points (+1.67%) to 7,682.27
DAX was up 67.81 points (+0.54%) to 12,579.72
CAC 40 was up 71.37 points (+1.34%) to 5,387.38
Nikkei 225 was down 176.21 points (-0.78%) to 22,516.83
Hang Seng Index was up 42.65 points (+0.15%) to 29,338.70
Shanghai China Composite Index was up 14.14 points (+0.49%) to 2,889.95
NYSE SECTOR INDICES
NYSE Energy Sector Index was up 374.46 points (+3.21%) to 12,039.84
NYSE Financial Sector Index was up 30.62 points (+0.38%) to 7,920.23
NYSE Healthcare Sector Index was up 121.74 points (+0.83%) to 14,705.82