Stocks are rising Wednesday morning as machinery and chemical companies get a boost from the weaker dollar. Energy companies are edging higher as the price of oil continues to rise. Payment terminal maker VeriFone is tumbling after cutting its expectations and saying it will eliminate jobs.
The Dow Jones industrial average edged up 45 points, or 0.3%, to 17,983 as of 10:20 a.m. EDT. The Standard & Poor’s 500 index rose 2 points, or 0.1%, to 2,114. The Nasdaq composite was flat at 4,962.
ENERGY: Benchmark U.S. crude climbed 71 cents, or 1.4%, to $51.07 per barrel in New York. Brent crude, used to price international oils, climbed 81 cents, or 1.6%, to $52.25 per barrel in London. Anadarko Petroleum advanced 55 cents, or 1%, to $55.77 and Marathon Oil rose 20 cents, or 1.4%, to $14.82.
U.S. crude has risen over the last few days as the dollar weakened. On Tuesday, U.S. crude closed at more than $50 a barrel for the first time since July.
CURRENCY: The dollar declined to 106.64 yen from 107.31 yen late Tuesday. The euro edged up to $1.1409 from $1.1361.
The dollar has lost some of its strength in the wake of Friday’s disappointing jobs report. That’s helped energy companies as well as mining companies and chemicals and machinery makers because a weaker dollar makes U.S. goods more affordable in other countries.
Machinery maker Caterpillar jumped $1.34, or 1.7%, to $78.15 and engine maker Cummins ticked up $2.09, or 1.8%, to $119.24. Gold and copper producer Freeport-McMoRan advanced 53 cents, or 4.7%, to $11.77, gold producer Newmont Mining climbed 92 cents, or 2.6%, to $35.87 and aluminum company Alcoa rose 19 cents, or 1.9%, to $9.98.
PLAY ON: Restaurant chain Dave & Buster’s climbed $3.53, or 8.4%, to $45.39 after the company reported strong first-quarter results and raised its outlook for the year.
PAY UP: VeriFone Systems, which makes terminals used for electronic payments, slashed its annual forecast after it reported disappointing quarterly results. The company said it will eliminate jobs and review some of its struggling businesses. The stock dived $8.25, or 29.2%, to $19.98.
OXFORD ROCKED: Oxford Industries, the owner of Tommy Bahama, Lilly Pulitzer and other clothing lines, slumped after its first-quarter results disappointed investors. The stock fell $3.92, or 6%, to $61.21.
OVERSEAS: Germany’s DAX was down 1% and France’s CAC-40 shed 0.8%. Britain’s FTSE 100 added 0.1%. Tokyo’s Nikkei 225 gained 0.9% and Seoul’s Kospi advanced 0.8%.
GLOBAL GROWTH: The World Bank cut its forecast for this year’s global economic growth to 2.4% from the 2.9% pace projected in January. It cited sluggish growth in advanced economies, stubbornly low commodity prices, weak global trade and diminishing capital flows. It said half the revision was prompted by the struggle of commodity-exporting economies to adapt to lower prices for oil and other key commodities.
BONDS: U.S. government bond prices rose. The yield on the 10-year U.S. Treasury note fell to 1.70% from 1.72%.
Article by Associated Press.