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BCN-07
US-STOCKS-MARKETS
Dow ends losing streak as oil shares gain
NEW YORK, June 23, 2018 (BSS/AFP) – The Dow snapped an eight-session losing
streak on Friday with petroleum giants Exxon Mobil and Chevron scoring strong
gains after OPEC agreed to only a modest production increase.
The Dow Jones Industrial Average rose 0.5 percent to 24,580.89. The index
had fallen the last eight days amid trade war fears.
The broad-based S&P 500 added 0.2 percent at 2,754.88, while the tech-rich
Nasdaq Composite Index shed 0.3 percent to 7,692.82.
Ministers with the Organization of the Petroleum Exporting Countries agreed
to ramp up oil production by around a million barrels a day from July.
However, some ministers acknowledged that the actual amount of additional
produced will be lower than that amount. Oil prices rose solidly following
the agreement, with analysts saying the output increase would be smaller than
expected.
Dow members ExxonMobil and Chevron both rose about two percent, while oil
services giants Halliburton and Schlumberger both climbed nearly three
percent.
Trade issues remained a lingering concern.
US President Donald Trump threatened to impose a 20 percent tariff on cars
imported from the European Union after the bloc’s additional tariffs on
dozens of American products took effect.
Gregori Volokhine, president of Meeschaert Capital Markets, said investors
remained on guard over trade tensions between the United States and key
trading partners.
“Earnings season is coming,” he said. “If we stay in this state of negative
suspension on trade, most of the companies will be really cautious with their
comments,” which could lead stocks lower.
Software company Red Hat sank 14.1 percent after projecting second-quarter
profits and revenues that lagged analyst expectations.
BSS/AFP/HR/0930