Share

Oil strength lifts Dow, tech shares lag

New York - A big surge in oil prices pushed petroleum stocks higher Monday, while the Nasdaq dropped on weakness in Facebook and some other major tech names.

The Dow Jones Industrial Average rose 67.18 points (0.40%) to 17 073.95.
The broad-based S&P 500 added 1.77 (0.09%) at 2 001.76, while the tech-rich Nasdaq Composite Index dipped 8.77 (0.19%) to 4 708.25.

Dow members ExxonMobil and Chevron jumped 2.6% and 3.1%, respectively, following a 5.5% jump in oil prices, as the petroleum market continued to strengthen on hopes of a deal by producers to limit output.

Other commodity-linked companies also gained, including Dow member Caterpillar, up 2.7%, United States Steel, up 4.6%, and aluminium producer Alcoa, up 4.9%.

But Facebook dropped 2.5%, Netflix 6.0% and Google parent Alphabet and Amazon both 2.2%, as investors rotated into commodity investments from stocks that have outperformed, said Michael James, managing director of equity trading at Wedbush Securities.

"We continue to be in a market of rotation," James said. "Things that have performed well that are over owned are being sold, or trimmed."

Apple lost 1.1% after the US Supreme Court upheld lower-court rulings that it was part of a price-fixing conspiracy for electronic books. The court's decision clears the way for a $450m settlement to be paid by Apple.

Dow member DuPont rose 2.4% following a report that German chemical company BASF is considering a counter bid for the US company, potentially overtaking DuPont's planned merger with Dow Chemical. Dow lost 1.1%.

Furniture and home-furnishings retailer Pier 1 Imports jumped 29.2% after announcing that it expects fourth-quarter comparable sells dipped 0.7%, better than the prior projection of a decline of between two and four percent.

Valeant Pharmaceuticals rose 7.1% after announcing it will release fourth-quarter earnings on March 15.

Valeant previously withdrew its financial forecast amid an internal review of its accounting practices and said it was under investigation by US regulators.

We live in a world where facts and fiction get blurred
Who we choose to trust can have a profound impact on our lives. Join thousands of devoted South Africans who look to News24 to bring them news they can trust every day. As we celebrate 25 years, become a News24 subscriber as we strive to keep you informed, inspired and empowered.
Join News24 today
heading
description
username
Show Comments ()
Rand - Dollar
18.96
-0.1%
Rand - Pound
23.92
-0.1%
Rand - Euro
20.43
+0.0%
Rand - Aus dollar
12.35
-0.0%
Rand - Yen
0.13
-0.1%
Platinum
908.05
+1.2%
Palladium
1,014.94
+1.3%
Gold
2,232.75
-0.0%
Silver
24.95
-0.1%
Brent Crude
87.00
+1.8%
Top 40
68,346
0.0%
All Share
74,536
0.0%
Resource 10
57,251
0.0%
Industrial 25
103,936
0.0%
Financial 15
16,502
0.0%
All JSE data delayed by at least 15 minutes Iress logo
Company Snapshot
Editorial feedback and complaints

Contact the public editor with feedback for our journalists, complaints, queries or suggestions about articles on News24.

LEARN MORE
Government tenders

Find public sector tender opportunities in South Africa here.

Government tenders
This portal provides access to information on all tenders made by all public sector organisations in all spheres of government.
Browse tenders