By Wallace Witkowski and Anora Mahmudova, MarketWatch
Energy shares hit as oil slides more than 3%
U.S. stocks closed higher Tuesday, with the Dow industrials
rising more than 100 points after the first presidential debate
between Democratic candidate Hillary Clinton and Republican
contender Donald Trump and a number of stronger-than-expected
economic reports.
The Dow Jones Industrial Average closed with a gain of 133.47
points, or 0.7%, at 18,228.30, led by gains in shares of Microsoft
Corp.(MSFT), International Business Machines Corp.(IBM) and Nike
Inc.(NKE). Walt Disney Co.(DIS) was the only decliner on the
blue-chip average.
The S&P 500 index rose 13.83 points, or 0.7%, to finish at
2,159.93. Tech and consumer-discretionary shares led the gainers,
rising 1% or more, while utilities closed down 1.3% and energy
shares fell 0.5%, thanks to a slide in oil.
The Nasdaq Composite Index finished up 48.22 points, or 0.9%, at
5,305.71.
The advance in stocks suggests that U.S. equity markets are
betting that Clinton benefited the most from Monday's presidential
debate. Stocks are rising on the prospect of a Clinton presidency
because the Democrat is viewed as a known quantity while some view
Trump as being more unpredictable--a bad thing for stock
investors.
"Investors have a better idea about policies of Hillary Clinton,
so any sign she is closer to the presidency is a boost for
markets," said Diane Jaffee, senior portfolio manager at TCW.
Oil futures tumbled to settle down 2.7% at $44.67 a barrel
(http://www.marketwatch.com/story/oil-prices-lower-after-iran-douses-hopes-for-production-deal-2016-09-27)
after both Iran and Saudi Arabia played down expectations for a
deal to freeze or cut oil production at the closely watched
informal OPEC meeting on Wednesday.
Additionally, U.S. consumer confidence
(http://www.marketwatch.com/story/consumers-the-most-confident-since-2007-2016-09-27)rose
to 104.1 in September, the highest level since August 2007.
"Debate performance gave investors a little more confidence
about this election, and I think today's move came as consumer
confidence came in better than expected," said Robert Pavlik, chief
market strategist at Boston Private Wealth. "I think that's what's
behind [higher stocks] given that oil is down."
Analysts noted that worries over Deutsche Bank and other
European banks
(http://www.marketwatch.com/story/how-deutsche-bank-woes-are-stressing-out-the-us-stock-market-2016-09-26)
also continue to rattle investor nerves.
Read:Deutsche Bank debt is taking a beating
(http://www.marketwatch.com/story/deutsche-bank-debt-is-taking-a-beating-2016-09-27)
"Some investors are wondering if Deutsche Bank troubles may turn
into a Lehman scenario and that's putting pressure on European
equities," Mark Kepner, managing director of sales and trading at
Themis Trading, referring to Lehman Brothers, which collapsed in
September 2008, sending shock waves that marked the height of the
financial crisis.
(http://www.marketwatch.com/story/deutsche-bank-debt-is-taking-a-beating-2016-09-27)Read:At
debate, Trump and Clinton clash on how to remake the economy
(http://www.marketwatch.com/story/how-trump-and-clinton-want-to-remake-the-economy-2016-09-26)
Mexico wave: In another sign suggesting financial markets
(http://www.marketwatch.com/story/financial-markets-say-clinton-beat-trump-in-the-debate-2016-09-26)
were betting that Clinton would benefit from the debate, the
Mexican peso surged against the dollar on Tuesday. The greenback
fell to 19.413 pesos, down from 19.879 pesos late Monday in New
York.
The peso has been acting as a gauge of the presidential election
sentiment on the theory that a victory for Trump will at the very
least result in less trade between the two countries, if not the
building of a barrier on the U.S. southern border.
The ICE U.S. Dollar Index , a measure of the buck's strength
against a basket of six key rivals, was up 0.2% at 95.47.
Economic docket: The Case-Shiller home price index rose 5% for
the year in July, while house prices rose 0.6%.
The Markit flash services purchasing managers index for
September rose to 51.9 in September from 51 in August.
Movers and shakers: U.S.-listed shares of Deutsche Bank
AG(DBK.XE) closed 0.6% higher after the U.S. Justice Department's
third highest-ranking official said banks can lower penalties
(http://www.marketwatch.com/story/deutsche-bank-shares-turn-positive-after-justice-department-comments-2016-09-27)
by cooperating with authorities, according to a news report.
Shares of Royal Caribbean Cruises Ltd.(RCL) and Carnival
Corp.(CCL) were among top gainers on the S&P 500 after Carnival
raised its outlook for the year
(http://www.marketwatch.com/story/carnival-lifts-guidance-as-profit-rises-17-2016-09-26).
Shares of Chesapeake Energy Corp. (CHK)
(http://www.marketwatch.com/story/how-deutsche-bank-woes-are-stressing-out-the-us-stock-market-2016-09-26)EQT
Corp.(EQT), and Southwestern Energy Co.(SWN) led decliners on the
S&P 500.
Shares of EndoChoice Holdings Inc.(GI) soared 88% to close at
$7.95 after Boston Scientific Corp. (BSX) said it would buy the
medical technology company for roughly $210 million
(http://www.marketwatch.com/story/boston-sci-to-buy-endochoice-for-210-million-2016-09-27).
(http://www.marketwatch.com/story/how-deutsche-bank-woes-are-stressing-out-the-us-stock-market-2016-09-26)FactSet
Inc.(FDS) plunged 6.7%, even after posting a rise in earnings and
revenue
(http://www.marketwatch.com/story/factset-profit-and-revenue-rise-2016-09-27)
in its fiscal fourth quarter.
Kite Pharma Inc.(KITE) surged 9.2% after the drugmaker late
Monday released encouraging test results for its for its
non-Hodgkin lymphoma drug.
Other markets: Stocks in Europe eked out last minute gains
(http://www.marketwatch.com/story/european-stocks-slide-as-us-debate-cheer-fades-2016-09-27)
as oil's slide dragged on the energy sector. In Asia, shares
reversed earlier declines as investors reacted to the U.S.
presidential debate
(http://www.marketwatch.com/story/asian-shares-turn-mostly-higher-in-wake-of-us-presidential-debate-2016-09-27),
with the Nikkei Stock Average closing up 0.8%.
Gold futures
(http://www.marketwatch.com/story/gold-silver-lose-haven-bid-in-the-wake-of-the-presidential-debate-2016-09-27)
settled down 1% at $1,330.40 an ounce.
--Carla Mozee and Sara Sjolin in London contributed to this
article.
(END) Dow Jones Newswires
September 27, 2016 16:31 ET (20:31 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.