Tech Rally Lifts S&P 500 to Positive in 2015

Nichole Harper
29 Dec, 2015
New York City

S&P 500 index traded in the positive zone for the year after tech stocks rallied and energy complex stocks edged higher. Crude oil jumped 2%. European markets extended yearly gains but the FTSE 100 index lagged and the markets in Asia closed mixed.

[R]12:00 PM New York City, New York – S&P 500 index traded in the positive zone for the year after tech stocks rallied and energy complex stocks edged higher. Crude oil jumped 2%. European markets extended yearly gains but the FTSE 100 index lagged and the markets in Asia closed mixed.[/R]

Market indexes on Wall Street advanced and the oil jumped 2% after a week of decline.

On Wall Street, Tollbooth Strategy Index jumped 116.88 or 1.1% to 10,942.74.

S&P 500 index rose 18.56 or 0.9% to 2,075.03 and the Nasdaq Composite Index jumped 54.34 or 1.1% to 5,095.08.

The S&P 500 index rebounded in the positive territory led by a rally in tech stocks and the gain in energy complex stocks on the back of higher oil price.

Crude oil in New York gained 99 cents to $37.80 a barrel and gold slid 77 cents to $1,068.31 an ounce.

Crude oil has lost nearly two-third of its value since mid-2014 on the rising global supplies and falling demand in Asia.

With the weak demand in Asia, the price of Brent crude remained below the variety sold in the U.S. for the first time in many years. Moreover, oil price outlook in 2016 looks bleak as Iran is preparing to add 500,000 barrels a day supply to the world mark which are already running at a surplus of 2 million barrels a day.

U.S. Movers

General Electric Company ((GE)) gained 1.1% or 33 cents to $31.23 after the diversified industrial conglomerate agreed to acquire heavy-duty gas turbine maker privately-held Metem Corporation.

Intel Corporation ((INTC)) rose 15 cents to $35.08 after the European Commission approved acquisition of Altera Corporation for about $16.7 billion.

Pep Boys-Manny Moe and Jack ((PBY)) soared 7.1% or $1.23 to $18.62 after the automobile parts and services retailer received revised offer from activist investor’s Icahn Enterprises L.P. for $18.50 per share or $1 billion in cash.

The bid was $2 per share higher from Icahn''s earlier offer and $1.50 better than the Japan-focused tire maker Bridgestone Americas, Inc. The initial offer of Bridgestone was for $15 per share.

European Markets

European markets gained ground on Tuesday, led by the banking sector, but trading volume was light in the holiday shortened week.

In the U.K., the advance was limited by losses in the mining sector, which continued to decline on the falling global demand.

In London trading, FTSE 100 index increased 24.38 or 0.4% to 6,278.87 and in Frankfurt the DAX index advanced 155.49 or 1.5% to 10,810.36.

In Paris, CAC 40 index jumped 62.07 or 1.3% to 4,679.91.

Anglo American Plc plunged 6.2% to 307.65 pence after the resources miner agreed to sell its 83.33% stake in Australia-based Dartbrook Coal Mine near Aberdeen to Australian Pacific Coal for about $36 million in cash and royalty.

Deutsche Bank AG jumped 2.2% to €22.68 after the German investment bank agreed to sell its stake of 19.99% in China-based Hua Xia Bank to Chinese insurer PICC Property and Casualty Co Ltd for €3.7 billion.

The sale is part of the effort of Deutsche Bank to lower debt on its balance sheet.

Prysmian gained 2.93% to €20.37 after the Italian cable specialist increased its stake in Oman Cables Industry to 51% from its stake of 34.78%.

The additional 16% stake will cost €100 million.

Asian Markets

Stocks in Japan advanced on bargain-hunting and strength in construction and pharmaceuticals. Toshiba seeks a new credit line of 300 billion yen and plans large-scale restructuring.

FamilyMart’s sales and operating profits soar. Dydo Drinco completes the acquisition of two beverage business.

Japanese stocks advanced on Tuesday on the back of strength in defensive sectors and construction and pharmaceuticals stocks.

The market remained volatile and trading volume was low at the end of the year.

The Centre for Economic Research reported that Japan’s GDP grew 0.1% in November as compared to the previous month. Exports rose 1.6%, while imports dropped 0.6%.

In the construction sector, Kumagai Gumi gained 5.8%, Kajima Corp rose 2.3%, and Taisei Corp advanced 1.26%.

Among pharmaceuticals, Kyowa Hakko Kirin jumped 2.7%, while Takeda Pharmaceutical and Daiichi Sankyo added 2.6% each.

The Nikkei 225 Stock Average increased 108.88 or 0.6% to 18,982.23 and the broader Topix index gained 14.17 to 1,543.39.

The yen edged down against the U.S. dollar to 120.40.

Stocks on Dalal Street opened lower on the weakness in Asia-wide trading, however the weaker energy prices are expected to trim monthly trade deficit.

Investors reacted to domestic corporate news but also took a note of the weakening economic backdrop in China and another dive in energy and commodities prices.

Brent crude oil traded in London and the price for the benchmark variety for the supply in Asia and Europe dropped below the price in New York for the first time in decade.

Brent crude traded at $36.65 a barrel, lower than the closing price in New York of $36.76.

Rupee weakened 21 paisa to ₹66.40 against one U.S. dollar.

The Sensex Index edged up 45.35 or 0.2% to close at 26,079.48. The CNX Nifty rose 3.08 to 7,928.95.

Rupee traded near record low, despite the oil prices easing to 11-year low.