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US stocks gain, led by energy sector as price of oil climbs

Stocks open broadly higher, led by gains in energy companies as the price of crude oil rises

US stocks gain, led by energy sector as price of oil climbs

U.S. stocks moved sharply higher in early trading Tuesday, bouncing back after two days of losses and nudging the Standard & Poor's 500 index back into the black for the year. Energy companies were among the biggest gainers as the price of crude oil rose.

KEEPING SCORE: The Dow Jones industrial average rose 164 points, or 0.9 percent, to 17,692 as of 10:10 a.m. Eastern time. The S&P 500 index gained 16 points, or 0.8 percent, to 2,073. The Nasdaq composite climbed 40 points, or 0.8 percent, to 5,081.

ICAHN EFFECT: Pep Boys surged 7.7 percent after the auto parts and services retailer received another offer from activist investor Carl Icahn, putting the deal in the neighborhood of $1 billion. Shares in Pep Boys have been ratcheting steadily higher over the past two months as a takeover bid from Japanese tiremaker Bridgestone turned into a fight for control with Icahn. The stock added $1.36 to $18.77.

RIDING OIL: Several energy and mining companies moved higher, benefiting from a rebound in oil prices. Consol Energy rose 32 cents, or 4 percent, to $8.18, while Cabot Oil & Gas added 40 cents, or 2.3 percent, to $17.64. Freeport-McMoRan gained 26 cents, or 3.7 percent, to $7.11.

ENERGY: Monday's news that Iran intends to increase exports by 500,000 barrels per day once economic sanctions are removed deepened concern over excess global supplies, pushing prices 3.4 percent lower. But on Tuesday, benchmark U.S. crude rose 88 cents, or 2.4 percent, to $37.70 a barrel on the New York Mercantile Exchange. Brent crude, which is used to price international oils, gained 79 cents, or 2.1 percent, to $37.40 ar barrel in London.

MARKETS OVERSEAS: Germany's DAX rose 1.7 percent, while France's CAC 40 gained 1.6 percent. Britain's FTSE 100 edged 0.6 percent higher. In Asia, Japan's Nikkei rose 0.6 percent, while Hong Kong's Hang Seng added 0.3 percent. South Korea's Kospi edged 0.1 percent higher.

BONDS AND CURRENCIES: Bond prices fell. The yield on the 10-year Treasury note rose to 2.26 percent from 2.23 percent late Monday. The dollar was slightly higher at 120.47 yen, up from 120.34 on Monday. The euro slipped to $1.0929 from $1.0975.

Updated : 2021-07-27 14:56 GMT+08:00