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Omaha Steve

(99,632 posts) Fri Mar 20, 2015, 10:30 AM Mar 2015

US stocks rise on rebound in oil, strong company results

Source: AP-Excite

By KEN SWEET

NEW YORK (AP) — Stocks were moving higher Friday as oil prices recovered from their decline the previous day. Strong earnings from restaurant chain Darden and Nike also helped lift the market.

KEEPING SCORE: The Dow Jones industrial average rose 126 points, or 0.7 percent, to 18,084 as of 10:07 a.m. Eastern. The Standard & Poor's 500 index rose 13 points, or 0.6 percent, to 2,103 and the Nasdaq composite rose 36 points, or 0.7 percent, to 5,029.

ENERGY: After dropping more than 3 percent Thursday, oil was up $1.39, or 3 percent, to $46.86 a barrel. Energy stocks rose far more than the rest of the market, with the S&P 500 Energy sector up 1.3 percent.

EARNINGS: Nike jumped $3.63, or 3.7 percent, to $101.95 after reporting quarterly results that beat expectations. Also reporting strong results was Darden, owner of Olive Garden. Its shares rose $1.49, or 2 percent, to $66.36.

FULL story at link.

Read more: http://apnews.excite.com/article/20150320/financial_markets-0139aea757.html

8 replies

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US stocks rise on rebound in oil, strong company results (Original Post) Omaha Steve Mar 2015 OP

How the hell does a rise in the cost of a production resource lead to increased earnings? Ed Suspicious Mar 2015 #1

Simple. We pay more for it d_legendary1 Mar 2015 #3

Propaganda. Watch the headlines when oil goes down and stocks up....there are no linked headlines. Fred Sanders Mar 2015 #5

I agree Andy823 Mar 2015 #7

The reasoning above is poor Lucky Luciano Mar 2015 #8

I mean really, we're supposed to celebrate that it costs me more to get to work every day? Ed Suspicious Mar 2015 #2

The "stock market is up/down" on oil prices is a Wall St. fiction. Lower prices for oil/energy are always good for Fred Sanders Mar 2015 #4

There is one "sort of" connection daleo Mar 2015 #6

Ed Suspicious

(8,879 posts)

1. How the hell does a rise in the cost of a production resource lead to increased earnings?

Reply to Omaha Steve (Original post)

Fri Mar 20, 2015, 10:57 AM

Mar 2015

I'm sure I'm naive, but that sounds loony.

d_legendary1

(2,586 posts)

3. Simple. We pay more for it

Reply to Ed Suspicious (Reply #1)

Fri Mar 20, 2015, 11:13 AM

Mar 2015

and they get the profit. Nice rackett they have going there.

Fred Sanders

(23,946 posts)

5. Propaganda. Watch the headlines when oil goes down and stocks up....there are no linked headlines.

Reply to Ed Suspicious (Reply #1)

Fri Mar 20, 2015, 11:42 AM

Mar 2015

Fact is energy production is less than 3% of GDP...lower energy prices is good for the economy., the most energy hungry in the world.

Period.

Andy823

(11,495 posts)

7. I agree

Reply to Fred Sanders (Reply #5)

Fri Mar 20, 2015, 01:13 PM

Mar 2015

There is no link, in reality, to the price of oil and the stock markets. Right now it's another one of those "rallies" where those with lots of money bought up oil when it was down around $42.00 a barrel and they are manipulating the price so they can make a profit next week, then once again the price will go down. It's all about the rich getting richer and oil prices are just their latest scam to increase their profits.

They want us to think that low oil prices are "BAD" for the economy, but really it's only bad for them in the long run.

Lucky Luciano

(11,256 posts)

8. The reasoning above is poor

Reply to Ed Suspicious (Reply #1)

Fri Mar 20, 2015, 05:50 PM

Mar 2015

Of course, the energy sector is a strong beneficiary, but other reasons for the market being up include a significantly weaker dollar ever since Yellen and company's dovish comments from Wednesday. The demand side of the oil equation is something not to ignore either, though I would agree, the oil price going up here today is not likely to be caused by sudden expectations of an increase in demand.

Some argued that oil was up because of new regulations on frackers having to disclose chemicals they use (potentially putting a crimp in production), some chatter about loosening the export ban, and the weaker dollar referenced above generally makes commodities more expensive since they are priced in dollars. Iranian negotiations may have hit a snag too which could also cause oil to rally - though there should have been a bigger rally in Brent crude (if there was a real snag) which did not happen relative to the West Texas crude.

Ed Suspicious

(8,879 posts)

2. I mean really, we're supposed to celebrate that it costs me more to get to work every day?

Reply to Omaha Steve (Original post)

Fri Mar 20, 2015, 10:58 AM

Mar 2015

Somebody's interests are definitely not in line with mine.

Fred Sanders

(23,946 posts)

4. The "stock market is up/down" on oil prices is a Wall St. fiction. Lower prices for oil/energy are always good for

Reply to Omaha Steve (Original post)

Fri Mar 20, 2015, 11:38 AM

Mar 2015

the general economy and almost all stocks, excluding oil stocks.

America is NOT a petro economy, it is a petro consuming economy.

daleo

(21,317 posts)

6. There is one "sort of" connection

Reply to Omaha Steve (Original post)

Fri Mar 20, 2015, 11:49 AM

Mar 2015

Rising oil prices could indicate an uptick in global demand for oil, which could indicate an increase in global economic demand in general, thus increasing the value of stocks, in general.

But in the short term these business headline cause and effect claims are mostly speculation or fabrication.

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