United States stocks rose early Wednesday as stronger oil prices lifted petroleum-linked shares even as Yum Brands and some other companies fell on disappointing earnings.
The AFP reported that about 35 minutes into trade, the Dow Jones Industrial Average was at 16,946.09, up 155.90 points (0.93 per cent).
The broad-based S&P 500 rose 17.53 (0.89 per cent) to 1,997.45, while the tech-rich Nasdaq Composite Index advanced 37.07 (0.78 per cent) to 4,785.43.
Dow member ExxonMobil gained 1.6 per cent and Marathon Oil rose 3.7 per cent as US oil prices moved up toward $50 a barrel.
But Yum Brands, which owns the KFC and Taco Bell fast-food chains, sank 18.5 per cent as it lowered its earnings forecast due to sluggish sales in China.
Agricultural seed giant Monsanto rose 1.9 per cent as it announced plans to cut 2,600 jobs over the next 18 to 24 months due to weakening demand in the wake of lower commodity prices.
Mining and oil company Freeport-McMoRan jumped 8.0 per cent after announcing it reached an agreement with activist investor Carl Icahn to appoint two Icahn associates to the company’s board.
Software company Adobe Systems tumbled 5.8 per cent as it projected 2016 earnings of $2.70 per share, well below the $3.19 projected by analysts.
Beer and spirits distributor Constellation Brands gained 2.8 per cent as second-quarter net income rose 54.4 per cent to $302.4m.
TJX, parent of TJ Maxx and other department-store chains, rose 1.4 per cent as it announced that president Ernie Herrman was promoted to chief executive, replacing Carol Meyrowitz, who will become executive chairman.
Bond prices fell. The yield on the 10-year US Treasury rose to 2.07 per cent from 2.04 per cent Tuesday, while the 30-year advanced to 2.91 per cent from 2.87 per cent. Bond prices and yields move inversely.
Source : Punch