Wall Street Advances after Boost by Energy Shares

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Wall Street Advances after Boost by Energy Shares

US stocks climbed after gains in the energy sector and Biogen rallying on news about an experimental treatment for Alzheimer’s disease.

Energy shares were the strongest sector on the day despite the continued weakness in crude oil prices.

The Dow Jones industrial Average climbed 0.53% or 94.27 points to 17,871.07 and the S&P 500 added 0.61% or 12.43 points to 2,065.87. The Nasdaq Composite added 0.57% or 26.75 points to 4,754.09, according to Reuters.

Mark Luschini, chief investment strategist at Janney Montgomery Scott in Philadelphia said, “Valuations have gotten pummeled under the weight of declining crude prices, and it looks like investors are starting to nibble at the space. The group looks extremely oversold, and dividends remain pretty strong.”

The most active companies, Marathon Petroleum climbed 4.7% to $95.07 and Valero Energy rose 3.8% at $50.77.

Cypress Semiconductor Corp agreed to purchase Spansion Inc in an all-stock deal that is valued at $4 billion. Otsuka Pharmaceutical Co. Ltd. said that it would purchase Avanir Pharmaceuticals Inc for around $3.5 billion.

Exxon Mobil and Chevron were some of the biggest gainers on the Dow and the S&P.

Cypress climbed 16% to $12.08 and Spansion climbed 23% at $28.09. Avanir gained 135 to $16.92.

Biogen Idec Inc. climbed 5.7% to $326.07. Its research chief said the company is planning a late stage-trial of its experimental treatment for Alzheimer’s disease after the drug significantly improved cognition in a small early-stage study.

As reported by Market Watch, the FTSE 100 Index was eyeing the first win in four days with mining and oil stocks rebounding from Monday’s trade. The Shanghai Composite gained 3% led by banks and brokerages.

The People’s Bank of China held back from draining funds from the banking systems, which triggered speculations that a cut in the reserve requirements might come soon, according to analysts.

To contact the reporter of the story: Jonathan Millet at john@forexminute.com