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Sep 19, 2016

Wall Street Closing Report on September 19, 2016: U.S. Stocks Set For Gains as Oil Rallies

www.marketwatch.com


marketwatch.com
 
Victor Reklaitis
 
U.S. stock futures on Monday pointed to a higher market open, joining in global gains that have come as oil futures rally.

S&P 500 futures SPZ6, +0.43%  rose 10 points, or 0.5%, to 2,142.50, while Dow Jones Industrial Average futures YMZ6, +0.43%  advanced by 85 points, or 0.5%, to 18,138. Nasdaq-100 futures NQZ6, +0.37%  tacked on 21.75 points, or 0.5%, to 4,836.
The U.S. oil benchmark CLV6, +1.37%  traded 1.5% higher, with credit for the jump going in part to news that military conflicts in Libya had affected that country’s crude exports.
Another supportive factor was Venezuelan President Nicolas Maduro saying on Sunday that members of the Organization of the Petroleum Exporting Countries and non-OPEC nations were nearing an agreement that would stabilize oil markets.
Asian markets “began the week on a moderately positive tack for equity markets, as the oil price rebounded slightly on reports over the weekend of a potential OPEC deal,” said Ian Williams, a Peel Hunt strategist, in a note.
Other OPEC members had damped expectations over the weekend for an agreement to limit crude output.
Commodities-related stocks were among the notable gainers in premarket action, with Marathon Oil Corp. MRO, -0.14%  rising 1.8%, Newmont Mining Corp. NEM, -2.40%  up 1.5% and Chesapeake Energy Corp. CHK, +1.38% adding 0.7%.
Analysts are also fretting about announcements later this week from the Federal Reserve and the Bank of Japan.
The S&P “held up within a zone of support in the 2100-2135 area last week, but we think this level may be in jeopardy of being broken this week as investors anticipate the Fed meeting,” said Katie Stockton, BTIG’s chief technical strategist, in a note.
Read more: Central bank developments are only game in town for markets
The S&P 500 SPX, -0.38%  gained 0.5% last week, finishing 2.3% below its mid-August record close, while the Dow DJIA, -0.49%  edged up 0.2% for the week, leaving it nearly 3% away from its mid-August peak.
Other markets: European stocks SXXP, +1.00% moved higher, while a key dollar index DXY, -0.16% pulled back and gold futures GCZ6, +0.56%  advanced.
Economic news: A September reading for the home builders’ index is due at 10 a.m. Eastern Time, and investors are getting ready for news on Wednesday from the Fed and BOJ.
Shifting expectations for the two-day meeting of the Fed’s rate-setting committee that ends on Wednesday have been a primary driver for U.S. markets. But headlines out of Tokyo due a few hours before the Fed news could be equally or even more important for asset prices.
Check out: MarketWatch’s Economic Calendar

A media outlet aligned with Islamic State has claimed the suspect in a Minnesota attack as a “soldier.” Photo: Associated Press
Corporate news: U.S.-listed shares in Sanofi SNY, -1.26% SAN, +1.26%  could move on news the French drug giant has filed a lawsuit against rival Merck & Co.’s MRK, -0.16%   international unit for alleged patent infringement.
Ann Taylor and Justice parent Ascena Retail Group Inc. ASNA, +1.92%  is among the companies due to report quarterly results after the closing bell.
The leader of the union representing auto workers in Canada said thousands of factory employees will strike at two General Motors Co. GM, -0.48%  plants if the sides miss a Monday night deadline for a new contract.