US Stocks Climb Tuesday Morning 12/18 09:32
U.S. stocks climbed Tuesday morning, putting at least a temporary halt to
the steep market losses that circled the globe in prior days. Asian markets
sank sharply earlier in the day, but European markets were mixed.
NEW YORK (AP) -- U.S. stocks climbed Tuesday morning, putting at least a
temporary halt to the steep market losses that circled the globe in prior days.
Asian markets sank sharply earlier in the day, but European markets were mixed.
The price of crude oil continued its sharp slide, and investors are waiting
to hear from the Federal Reserve, which begins a two-day meeting on interest
rates. Most economists expect it to raise short-term rates by another quarter
of a percentage point, but investors hope that it will signal a slower pace of
KEEPING SCORE: The S&P 500 was up 20 points, or 0.8 percent, at 2,566, as of
10 a.m. Eastern time. The index had two steep losses of at least 1.9 percent in
the two prior days, and it closed Monday at its lowest since two Octobers ago.
The Dow Jones Industrial Average rose 248, or 1.1 percent, to 23,841, and
the Nasdaq composite gained 69, or 1 percent, to 6,822.
TAKING OFF: Boeing surged to one of the market's biggest gains after it
raised its dividend 20 percent and increased its stock buyback program by $2
billion to $20 billion. Boeing's stock has struggled recently on worries that
the global trade war will hit its profits particularly hard.
Boeing rose 4.4 percent to $330.12.
EARNINGS BOOST: Oracle jumped 3.4 percent to $47.30 after reporting stronger
profit for the latest quarter than analysts expected. Companies across the
country have been doing similarly throughout this year, but investors have
often given the better-than-expected performances less attention than their
worries about slowing economic growth, higher interest rates and global trade
FED MEETING: Most economists expect the Fed to raise its short-term interest
rate to a range of 2.25 percent to 2.5 percent. The rate helps set borrowing
costs for various types of loans, and higher rates can slow economic growth and
make stocks look relatively less attractive.
MARKETS OVERSEAS: In Europe, Germany's DAX rose 0.3 percent, while France's
CAC 40 dripped 0.3 percent and the FTSE 100 in London dropped 0.6 percent.
Losses were more severe in Asia. The Nikkei 225 in Japan lost 1.8 percent,
the Hang Seng in Hong Kong dropped 1 percent and South Korea's Kospi slipped
COMMODITIES: The price of oil tumbled on worries about oversupply and
softening growth in China, which could hit demand. Benchmark U.S. crude dropped
$1.36 to $48.84 per barrel. On Monday it closed below $50 a barrel for the
first time in 14 months. Brent crude, used to price international oils, gave up
$1.15 to $58.46 per barrel.
Gold dipped $1.50 to $1,250.30 per ounce.
YIELDS: The yield on the 10-year Treasury dipped to 2.84 percent from 2.85
percent late Monday.
CURRENCIES: The dollar dipped to 112.56 Japanese yen from 112.75 yen late
Monday. The euro rose to $1.1373 from $1.1350, and the British pound rose to
$1.2646 from $1.2629.