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U.S. stocks inch up, as geopolitical tensions spark energy-fueled rally

Published 11/24/2015, 03:55 PM
Updated 11/24/2015, 04:31 PM
The Dow, NASDAQ and S&P 500 all closed slightly positive on Tuesday
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Investing.com -- U.S. stocks rebounded amid an energy-fueled rally, after Turkey rattled global markets by downing a Russian jet on the Syrian border on Tuesday morning.

Equity markets worldwide initially tumbled after reports surfaced that a Turkish F-16 jet plane shot down a Russian jet along the Turkish province of Hatay, the latest in a line of global disturbances in recent weeks. The major indices, though, rallied in the afternoon session after U.S. president Barack Obama and France president Francois Hollande soothed markets by taking an aggressive stance against any actions that could result in an escalation of current tensions in Syria.

The Dow Jones Industrial Average gained 19.51 or 0.11% to 17,812.19, extending gains from the previous session, while the NASDAQ Composite index inched up 0.33 or 0.01% to close at 5,102.81. The S&P 500 Composite index, meanwhile, rose 2.55 or 0.12% to 2,089.14, as six of 10 sectors closed in the green. Stocks in the Energy and Basic Materials sectors led, while stocks in the Consumer Services, Financials and Utilities industries lagged.

Energy stocks dominated the Dow, as Exxon Mobil Corporation (N:XOM) and Chevron Corporation (N:CVX) both rose sharply on the session. ExxonMobil finished just below Pfizer Inc (N:PFE) as the day's top performer after surging 1.61 or 2.01% to close at 81.89. Crude prices are sensitive to any signs of geopolitical strife in the Middle East, which is home to five of the top 10 crude producers in the world. The worst performer was Walt Disney Company (N:DIS), which fell 1.43 or 1.20% to 117.99.

A host of travel stocks weighed on the indices after the U.S. State Department issued a global travel warning ahead of the Thanksgiving holiday. The New York Stock Exchange's ARCA Airline index tumbled more than 2.4%, as shares in Delta Air Lines Inc (N:DAL), United Continental Holdings Inc (N:UAL), American Airlines Group (O:AAL) and Southwest Airlines Company (N:LUV) all fell by more than 2.5% on the day. The reverberations were felt in other segments of the travel industry, as Marriot International (O:MAR), Avis Budget Group Inc (O:CAR), Royal Caribbean Cruises Ltd (N:RCL) and Priceline.com Incorporated (O:PCLN) also closed down by more than 1%. The warning comes in the wake of terrorist attacks in Paris and Mali over the last several weeks.

The biggest gainer on the NASDAQ was Keurig Green Mountain Inc (O:GMCR), which gained 3.13 or 6.85% to 48.85. Keurig finished just ahead of Dollar Tree Inc (O:DLTR), which rose 4.61 or 6.63% to 74.16, as the discount store reported stronger than expected revenue resulting from its deal with Family Dollar (N:FDO). The worst performer was Electronic Arts Inc (O:EA), which fell 1.92 or 2.78% to 67.06.

Keurig was also the top performer on the S&P 500 ahead of Chesapeake Energy Corporation (N:CHK), which soared 0.35 or 6.81% to 5.49. Shares in the Oklahoma-based energy company are still down by more than 75% over the last 12 months. The worst performer was Patterson Companies Inc (O:PDCO), which fell 2.98 or 6.13% to 45.65 after the dental equipment and veterinary pharmaceutical company missed analysts' expectations with its quarterly results on Tuesday.

On the New York Stock Exchange, advancing issues outnumbered declining ones by a 1,885-1,188 margin.

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