US close: Markets rise ahead of OPEC decision, despite negative data

US equity markets rose on Wednesday, despite a rise in jobless claims for the first time since September and mixed data on orders for durable goods.

On a day with lots of weak economic data, the Dow Jones Industrial Average advanced by 12.81 points, landing at 17,827.75, while the S&P 500 rose by 5.8 to 2,072.83 and the Nasdaq increased 0.6% to 4,787.32.

The markets are still waiting on OPEC, the group of oil making nations, to make a decision about whether to reduce production levels. The OPEC meeting will take place 27 November.

Chief market analyst for FXTM Jameel Ahmed said: “Although there was previously optimism that a cut in production would be agreed, this optimism is quickly fading today.”

This follows reports that Saudi Arabian Oil minister Ali Al-Naimi asserted that the nation will not be willing to cut oil production and no other country should either. Mexico, Russia and Venezuela are all also reportedly against cutting production.

“If no one cuts production, it strongly suggests that the oil markets are set to continue trading in a bearish direction in the longer term,” Ahmed added.

Barclays Research argued that “Saudi Arabia is likely also mindful of the impact of higher oil prices on what is currently a fragile global economy and on future oil demand growth”.

“Given the widespread view that current price levels will not be enough to materially lower US tight oil output growth, another leg lower of as much as $10/barrel would be likely if this scenario materialises.”

The US Department of Commerce released figures that revealed orders for durable goods increased by 0.4% month-on-month in October to $243.8bn, topping the consensus forecast of a 0.6% fall. However this figure excluded transportation.

Meanwhile, initial jobless claims rose to an 11-week high and sky-rocketed to the 300,000 mark for the first time in nearly three months.

The number of US initial jobless claims in the week ended 22 November reached 313,000, exceeding the 288,000 expected by a substantial amount.

In the corporate world, Hewlett-Packard shares gained more than 4% in spite of missing estimates for fourth quarter sales. The stock “bounced back from a weak open, as the low valuation and healthy balance sheet entice in investors despite an across-the-board decline in revenues”, according to IG market analyst Chris Beauchamp.

Elsewhere, Deere & Co stock fell by 0.91% after its 2015 profit was announced as $1.9bn, missing earlier $2.2bn estimates.

Hertz Global Holdings receded steadily by 3.88% following a stake increase by Icahn Associates of about 11% from 8.7% at the end of September.

The dollar succumbed to the pound, the yen and the euro, while oil prices continued to decline. Brent crude dropped almost a full percentage point to $77.6 a barrel, while West Texas intermediate sank to $73.6 a barrel after losing almost 0.7%.

S&P 500 - Risers
Analog Devices Inc. (ADI) $54.56 +5.51%
Becton, Dickinson & Company (BDX) $141.26 +4.85%
Mylan Inc. (MYL) $58.62 +4.36%
Hewlett-Packard Co. (HPQ) $39.16 +4.07%
Texas Instruments Inc (TXN) $54.33 +3.60%
Avago Technologies Ltd. (AVGO) $93.78 +2.89%
Applied Materials Inc. (AMAT) $23.87 +2.78%
Linear Technology Corp. (LLTC) $45.55 +2.73%
Hormel Foods Corp. (HRL) $52.70 +2.69%
Facebook Inc. (FB) $77.62 +2.63%

S&P 500 - Fallers
KLA-Tencor Corp. (KLAC) $67.33 -20.01%
Diamond Offshore Drilling Inc. (DO) $32.22 -10.90%
Transocean Ltd. (RIG) $23.27 -8.06%
Ensco Plc. (ESV) $37.15 -6.85%
Noble Corporation plc (NE) $19.71 -5.06%
Rowan Companies plc (RDC) $23.32 -3.60%
Newfield Exploration Co (NFX) $32.48 -3.56%
Pioneer Natural Resources Co. (PXD) $160.81 -3.54%
Nabors Industries Ltd. (NBR) $15.07 -3.40%
Flowserve Corp. (FLS) $65.19 -3.35%

Dow Jones I.A - Risers
Pfizer Inc. (PFE) $31.10 +2.07%
Intel Corp. (INTC) $36.90 +1.60%
Verizon Communications Inc. (VZ) $50.04 +1.42%
Travelers Company Inc. (TRV) $104.37 +0.91%
AT&T Inc. (T) $35.13 +0.89%
Home Depot Inc. (HD) $97.70 +0.71%
Merck & Co. Inc. (MRK) $59.75 +0.69%
Microsoft Corp. (MSFT) $47.75 +0.59%
Cisco Systems Inc. (CSCO) $27.42 +0.53%
Nike Inc. (NKE) $97.80 +0.52%

Dow Jones I.A - Fallers
United Technologies Corp. (UTX) $110.16 -1.39%
Chevron Corp. (CVX) $115.11 -0.90%
McDonald's Corp. (MCD) $96.22 -0.80%
Caterpillar Inc. (CAT) $105.79 -0.42%
Exxon Mobil Corp. (XOM) $94.48 -0.32%
Coca-Cola Co. (KO) $44.29 -0.32%
E.I. du Pont de Nemours and Co. (DD) $71.47 -0.29%
Goldman Sachs Group Inc. (GS) $188.52 -0.18%
Boeing Co. (BA) $134.78 -0.02%
Visa Inc. (V) $257.26 -0.00%

Nasdaq 100 - Risers
Analog Devices Inc. (ADI) $54.56 +5.51%
Mylan Inc. (MYL) $58.62 +4.36%
Texas Instruments Inc (TXN) $54.33 +3.60%
Avago Technologies Ltd. (AVGO) $93.78 +2.89%
Applied Materials Inc. (AMAT) $23.87 +2.78%
Linear Technology Corp. (LLTC) $45.55 +2.73%
Facebook Inc. (FB) $77.62 +2.63%
Dish Network Corp. (DISH) $78.24 +2.49%
Xilinx Inc. (XLNX) $45.49 +2.48%
Maxim Integrated Products Inc. (MXIM) $29.68 +2.45%

Nasdaq 100 - Fallers
KLA-Tencor Corp. (KLAC) $67.33 -20.01%
Vimpelcom Ltd Ads (VIP) $5.77 -1.87%
Staples Inc. (SPLS) $13.92 -1.21%
Priceline Group Inc (PCLN) $1,166.83 -1.05%
Mattel Inc. (MAT) $30.88 -0.99%
NetApp Inc. (NTAP) $42.70 -0.88%
PACCAR Inc. (PCAR) $67.36 -0.85%
F5 Networks Inc. (FFIV) $129.09 -0.83%
Gilead Sciences Inc. (GILD) $100.30 -0.80%
Bed Bath & Beyond Inc. (BBBY) $72.58 -0.66%