Energy stocks lift US indices higher after OPEC OKs production hike

Benchmark US indices closed higher on Thursday, September 2, pulled up by gains in energy stocks after global oil cartel OPEC decided to go ahead with its planned production increase.

The S&P 500 was up 0.28% to 4,536.95. The Dow Jones gained 0.37% to 35,443.82. The NASDAQ Composite rose 0.14% to 15,331.18, and the small-cap Russell 2000 was up 0.74% to 2,304.02.

Energy stocks rallied in intraday trading a day after OPEC and its partners decided to stick to their previous plan to increase oil production. In addition, investors were buoyed by the labor data.

The number of unemployment benefits claims declined by 14,000 to 340,000 last week, the lowest level since mid-March, the Labor Department said in its weekly report on Thursday.

Another data from the US Census Bureau showed that the US international trade deficit in goods and services plummeted to US$70.1 billion in July from US$73.2 billion in the previous month. The decline has been attributed to the increase in exports and decrease in imports.

Energy and healthcare stocks were the top gainers on S&P 500 Thursday. Communication and technology stocks were the bottom movers. Seven of the 11 index segments stayed in the green.

Shares of ChargePoint Holdings, Inc. (CHPT) jumped 8.22% a day after the company reported better-than-expected quarterly results. Its Q2 revenue rose by 61% YoY to US$56.1 million. The company raised its full-year guidance, now estimated to be between US$225 million and US$235 million.

American Eagle Outfitters, Inc. (AEO) stock declined 9.29% in intraday trading despite reporting strong quarterly results. Its revenue rose 35% YoY to US$1.19 billion. Discount store operator Five Below, Inc. (FIVE) stock fell 13% at the market close after reporting quarterly results on Wednesday.

In the energy sector, Exxon Mobil Corporation (XOM) rose 1.98%, Chevron Corporation (CVX) surged 1.87%, and Royal Dutch Shell plc (RDS-A) increased by 1.73%. PetroChina Company Limited (PTR) and BP plc (BP) advanced 1.36% and 1.93%, respectively.

In communication stocks, Alphabet Inc. (GOOGL) declined 1.17%, Facebook, Inc. (FB) dropped 1.98%, and The Walt Disney Company (DIS) decreased by 1.03%. T-Mobile US, Inc. (TMUS) and NetEase Inc. (NTES) plunged 1.33% and 2.07%.

In the healthcare sector, UnitedHealth Group Incorporated (UNH) rose 1.38%, Pfizer Inc. (PFE) increased by 1.53%, and Danaher Corporation (DHR) surged 0.92%. AstraZeneca PLC (AZN) and Moderna, Inc. (MRNA) soared 1.39% and 2.07%, respectively.

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Top Gainers

Top performers on S&P 500 included Quanta Services Inc (12.06%), Cabot Oil & Gas Corp (6.70%), Occidental Petroleum Corp (5.98%), Baxter International Inc (4.84%). On NASDAQ, top performers were AgileThought Inc (69.40%), Sphere 3D Corp (41.78%), Data Storage Corp (29.59%), Neuroone Medical Technologies Corp (22.97%). On Dow Jones, Walgreens Boots Alliance Inc (2.96%), Chevron Corp (2.09%), Caterpillar Inc (1.84%), UnitedHealth Group Inc (1.52%) were the leaders.

Top Losers

Top laggards on S&P 500 included Autodesk Inc (-5.20%), Hormel Foods Corp (-4.60%), Gap Inc (-2.91%), Visa Inc (-2.58%). On NASDAQ, Meten Holding Group Ltd (-57.18%), Unico American Corp (-17.39%), Assembly Biosciences Inc (-16.15%), Vinco Ventures Inc (-15.18%). On Dow Jones, Visa Inc (-2.58%), Salesforce.Com Inc (-1.55%), American Express Co (-1.45%), Walt Disney Co (-0.88%) were the laggards.

Volume Movers

Top volume movers were Apple Inc (15.74M), AT&T Inc (12.10M), Bank of America Corp (9.51M), Wells Fargo & Co (8.41M), Ford Motor Co (8.03M), Meten Holding Group Ltd (26.61M), Sphere 3D Corp (26.16M), Vinco Ventures Inc (11.92M), Sundial Growers Inc (8.46M), Ferroglobe PLC (7.86M).

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Futures & Commodities

Gold futures were down 0.24% to US$1,811.65 per ounce. Silver decreased by 1.17% to US$23.938 per ounce, while copper rose 0.46% to US$4.2975.

Brent oil futures increased by 1.65% to US$72.77 per barrel and WTI crude was up 1.65% to US$69.72.

Bond Market

The 30-year Treasury bond yields was down 1.07% to 1.898, while the 10-year bond yields fell 1.16% to 1.287.

US Dollar Futures Index decreased by 0.26% to US$92.213.