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U.S. stocks move higher as investors shrug off oil rout

Published 04/18/2016, 11:34 AM
© Reuters.  Wall Street registers slight gains despite slump in crude
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Investing.com – U.S. stocks traded higher on Monday as investors shrugged off the slump in oil and the balance of earnings news was positive in a session with Federal Reserve (Fed) officials as the only major reference on the macro calendar.

At 15:24GMT, or 11:24ET, the Dow Jones rose 70 points, or 0.39%, while the S&P 500 gained 8 points, or 0.40%, and the tech-heavy NASDAQ Composite traded up 10 points, or 0.20%.

The major headline for markets on Monday was the failure of major oil producers Sunday to reach an agreement to curb production.

Blame was primarily placed on Saudi Arabia who refused to make a deal without Iran’s participation.

Oil pared some of its early losses on Monday, with West Texas recovering $40 per barrel after having marked an intraday low at $39.02.

Specifically, U.S. crude futures lost 1.77% to $40.97 a barrel by 15:25GMT or 11:25AM ET, while Brent oil fell 0.88% to $42.72.

In a light economic data day, New York Fed president William Dudley showed an upbeat perspective on the U.S. economy, but still insisted that rate hikes would be “gradual and cautious” as there continued to be “significant uncertainties and the headwinds to growth from the financial crisis have not fully abated.”

Minneapolis Fed chief Neel Kashkari will participate in a Q&A at 16:30GMT, or 12:30ET.

Boston Fed president Eric Rosengren will give a lecture on monetary policy and issues facing the U.S. central bank at the Central Connecticut State University School of Business at 23:00GMT, or 19:00ET.

IMF chief Christine Lagarde will answer questions on the global economy via Twitter at 17:00GMT, or 13:00ET.

In company news, Walt Disney Company (NYSE:DIS) jumped more than 2% and led the Dow higher as its film “The Jungle Book” took in $103.6 million at the U.S. box office over the weekend, marking the second best April opening on record.

Morgan Stanley (NYSE:MS) slipped 0.3% as first quarter revenue fell 21% and profit dropped by more than half.

Hasbro Inc (NASDAQ:HAS) soared more than 5% after first quarter profit and revenue beat consensus.

PepsiCo Inc (NYSE:PEP) pushed forward 0.3% after reporting better-than-expected earnings.

International Business Machines (NYSE:IBM) will report after the close.

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