US stocks rallied as prices of oil rebounded and the Dow component Pfizer Inc announced a deal of $16 billion.
Halliburton Co. and Denbury Resources Inc. rose more than 2.5% with oil climbing 6.1%. Pfizer gained 2.9% as it agreed to purchase Hospira Inc., the largest provider of infusion technology and injectable drugs. Hospira rose 35%.
The Dow Jones Industrial Average climbed 0.9% or 152 points to 17,824 while the S&P 500 added 0.8% or 17 points to 2,059. The Nasdaq Composite Index gained 0.7% or 33 points to 4,749 as reported by The Wall Street Journal .
Krishna Memani, chief investment officer at Oppenheimer Funds Inc said, “Right now it’s earnings, Greece and M&A. It’s more about the corporate outlook in the US remaining good and the realization that while the Greek issue is important, it will eventually be resolved.”
The rising prices for crude oil fueled gains in energy stocks and materials, leading to the S&P 500 climbing higher with gains of 1.4% and 1.8% respectively. Futures for US crude climbed 4.9% to $50.79 per barrel. The decline of one month in the prices of oil and the other commodities has led to certain investors fretting about the global demand.
Bloomberg quoted Philippe Gijsels, chief strategy officer at BNP Paribas Fortis as having said, “The US market lagged Europe at the beginning of the year, but in the last days there has been a catch-up driven by good figures. Earnings have been favorable, and the market is now probably anticipating good numbers for tomorrow’s non-farm payrolls.”
The Shanghai Composite Index in China dropped 1.2% and the Nikkei Stock Average of Japan dropped 1% despite introduction of a new stimulus measure from the People’s Bank of China.
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