U.S. equity markets closed sharply higher Wednesday as an early rebound in crude oil prices broadened into a solid advance that handed the Dow its fifth straight gain and the Nasdaq a fourth win in a row.

More than 75% of the 197 industry groups tracked by IBD moved higher in a session that left the Dow Jones industrial average ahead 0.8%. The S&P 500 grabbed a 1% gain. The Nasdaq Composite also climbed 1%. Exxon Mobil (XOM) was one of five Dow stocks to rise more than 2%. Walmart (WMT) and Walt Disney (DIS) staked out the bottom of the list. Both the Dow and the S&P 500 surfaced for their first real breath of air above their 50-day moving averages since April 18.

Crude oil prices easily kept their 42-month highs, while the yield on the 10-year Treasury note remained steady at 3%. Stocks scoring breakouts Wednesday included Chevron (CVX), Royal Dutch Shell (RDSA), Occidental Petroleum (OXY) and Electronic Arts (EA), among others.

Chevron, Occidental Break Out

Energy issues drove the session. Exxon ran near the head of the Dow. Chevron, Shell and Occidental Petroleum scored breakouts. Oil and energy industries made four of the day’s seven biggest advances among the 197 industry group tracked by IBD.

The price of West Texas intermediate crude settled up 3% at 71.14. That took back more than the ground it lost Tuesday and marked its first close above $71 a barrel since November 2014. Oil prices had turned volatile on Tuesday’s news that the U.S. had exited the Iran nuclear deal. A new round of sanctions could take a share of Iranian oil off the international market. Iran, the world’s fifth largest oil producer, exported 2.48 million barrels per day in April.

Crude oil prices received an added boost Wednesday morning, after the Energy Information Administration reported a 2.2-million-barrel draw on U.S. oil stockpiles last week vs. expectations for a build of 160,000 barrels.

Read more: https://www.investors.com/market-trend/stock-market-today/walmart-chevron/


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