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Stock Market News for November 17, 2015

Benchmarks snapped a three session losing streak to end in the green on Monday, led by gains in energy shares. Rise in U.S. traded crude oil price led to gains in energy shares. U.S. oil price moved north on possibilities of a greater violence in the Middle East, an aftermath of the Paris attacks last Friday. Nevertheless, investors shook off concerns about the Paris attacks as they believe it won't have a lasting impact on the U.S. economy and corporate earnings.

For a look at the issues currently facing the markets, make sure to read today's Ahead of Wall Street article

The Dow Jones Industrial Average (DJI) gained 1.4%, or 237.77 points, to close at 17,483.01. The Standard & Poor's 500 (S&P 500) advanced 1.5% to close at 2,053.19. The tech-laden Nasdaq Composite Index closed at 4,984.62, increasing 1.2%. The fear-gauge CBOE Volatility Index (VIX) plunged 9.6% to settle at 18.16. A total of around 6.7 billion shares were traded on Monday, lower than the last 20-session average of 7.2 billion. Advancers outpaced declining stocks on the NYSE. For 71% stocks that advanced, 27% declined.

Gains in energy shares helped benchmarks end in positive territory on Monday. Energy shares gained following increase in U.S. crude oil prices . Violence in Syria leading to concerns about oil-supply disruptions in the Middle East boosted U.S crude oil prices . The U.S. stepped up airstrikes in Syria on Monday, targeting Islamic State's oil tankers.

U.S. airstrikes were part of a broader campaign that included France's airstrikes in Syria. French airstrikes in Syria was in response to the multiple terrorist attacks in Paris last Friday, with the Islamic State claiming responsibility for such attacks. About 130 people were killed and several others were injured on Friday in Paris, in what is France's most devastating terror attack ever.

Decline in oil production levels by Organization of the Petroleum Exporting Countries (OPEC) in October to its lowest level since May also boosted U.S. crude oil prices. OPEC's oil production in October fell by 120,000 barrels a day from a month earlier, its third straight monthly decline. While the price of WTI crude oil gained 2.4% to $41.74 a barrel, price of Brent crude oil declined almost 1% to $43.58 per barrel.

The Energy Select Sector SPDR (XLE) advanced 3.3%, the highest among the S&P 500 sectors. Dow components Exxon Mobil Corporation ( XOM ) and Chevron Corporation ( CVX ) gained 3.6% and 4.4%, respectively. Other key stocks from the energy sector including ConocoPhillips ( COP ), Kinder Morgan, Inc. ( KMI ) and Occidental Petroleum Corporation ( OXY ) increased 4.9%, 2.9% and 1.9%, respectively.

Separately, the Homebuilders ETF (XHB) gained 1.8% and was the second biggest gainer among the S&P 500 sectors. Key stocks from this sector including Beazer Homes USA Inc. ( BZH ), DR Horton Inc. ( DHI ), Owens Corning ( OC ), Lennar Corporation ( LEN ) and PulteGroup, Inc. ( PHM ) rose 2.2%, 2.4%, 2.4%, 2.6% and 4.1%, respectively. Overall, 11 out of 12 S&P 500 sectors ended in the green.

However, travel and airline companies took a beating on Monday in the wake of Paris attacks. Shares of online travel related companies including The Priceline Group Inc. ( PCLN ) and Expedia Inc. ( EXPE ) declined 2.4% and 2.1%, respectively. Airline companies such as Delta Air Lines, Inc. ( DAL ), Southwest Airlines Co. ( LUV ) and JetBlue Airways Corporation ( JBLU ) dropped 2.2%, 0.3% and 0.7%, respectively. Shares of cruise-line company, Carnival Corporation ( CCL ) also fell 1.5%. Nevertheless, the broader markets gained as investors bet that the deadly terror attacks in Paris will have little long term effect on global financial markets.

In economic news, the Empire State Manufacturing Survey Index came in at a negative 10.7 in November. The consensus estimate had projected the reading to come in at a negative 6.5. Business activity for New York manufacturers declined for the fourth consecutive month in November.

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CONOCOPHILLIPS (COP): Free Stock Analysis Report

KINDER MORGAN (KMI): Free Stock Analysis Report

OCCIDENTAL PET (OXY): Free Stock Analysis Report

BEAZER HOMES (BZH): Free Stock Analysis Report

D R HORTON INC (DHI): Free Stock Analysis Report

OWENS CORNING (OC): Free Stock Analysis Report

LENNAR CORP -A (LEN): Free Stock Analysis Report

PULTE GROUP ONC (PHM): Free Stock Analysis Report

PRICELINE.COM (PCLN): Free Stock Analysis Report

EXPEDIA INC (EXPE): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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