- Title: Wall Street rises as OPEC deal fuels energy shares
- Date: 28th September 2016
- Summary: NEW YORK, NEW YORK, UNITED STATES (SEPTEMBER 28, 2016) (REUTERS) (SOUNDBITE) (English) MAX WOLFF, CHIEF ECONOMIST, MANHATTAN VENTURE PARTNERS, (ENGLISH) SAYING: "We know the stress tests don't work that well. They've evolved, and banks have figured out how to kind of game that system a little bit. So we do need a new regime of better stress tests. And we're probably going to get more and more difficult discussion of banks just because of the election cycle again."
- Embargoed: 13th October 2016 21:18
- Keywords: New York Stock Exchange NYSE OPEC markets closing bell oil prices crude oil
- Location: NEW YORK, NEW YORK, UNITED STATES / ALGIERS, ALGERIA
- City: NEW YORK, NEW YORK, UNITED STATES / ALGIERS, ALGERIA
- Country: USA
- Topics: Economic Events,Equities Markets
- Reuters ID: LVA00251HEUTP
- Aspect Ratio: 16:9
- Story Text: Wall Street ended higher on Wednesday (September 28) after an OPEC agreement to limit crude output fueled a rally in oil and more than offset nervousness about a tight race for the U.S. presidency.
The energy index had its best day since January, climbing 4.34 percent after OPEC sources said the group reached a deal to cut its oil production for the first time since 2008. Oil prices rallied as much as 6 percent.
Chevron climbed 3.20 percent and Exxon Mobil gained 4.40 percent. Shares of Caterpillar Inc, which sells heavy equipment to energy companies, jumped 4.48 percent.
A slump in oil prices has caused steep earnings declines and losses for U.S. energy producers for several quarters. S&P 500 energy companies on average are expected to post a 66 percent drop in third-quarter earnings, according to Thomson Reuters data.
Investors for months had shrugged off the Nov. 8 U.S. presidential election, but uncertainty about the election's outcome has taken center stage since Monday's first debate between candidates Donald Trump and Hillary Clinton.
U.S. stocks reversed earlier losses and moved higher following news of the OPEC agreement.
The Dow Jones industrial average rose 0.61 percent to end at 18,339.24 points and the S&P 500 gained 0.53 percent to 2,171.37. The Nasdaq Composite added 0.24 percent to 5,318.55.
Seven of the 11 major S&P sectors were higher. Telecom services fell 1.04 percent, the steepest of the decliners.
Some investors said that the oil deal would have only a limited ability boost crude prices, which earlier this year hit decade lows.
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