United States markets rose on Monday as the price of oil surged, lifting energy stocks. Shares of mining and chemicals companies also rose as part of a broad rally. The stock market is coming off its best week of the year.
KEEPING SCORE In early afternoon trading, the Dow Jones industrial average rose 1.63 percent and the Standard & Poorâs 500-stock index was up 1.49 percent. The Nasdaq composite index gained 1.58 percent.
ENERGY Benchmark United States crude gained $ 2.04, to $ 31.68 a barrel on the New York Mercantile Exchange. The contract plunged $ 1.18 on Friday. Brent crude, used to price international oils, rose $ 1.49, to $ 34.50 a barrel in London. It fell $ 1.27 on Friday.
Oil prices have risen about 20 percent since Feb. 11. Still, the price of oil is down about 70 percent since the middle of 2014. The International Energy Agency said Monday that it did not expect oil prices to recover significantly until 2017.
Chevron shares gained 2.6 percent and Diamond Offshore Drilling shares rose 7.3 percent. Shares of the drilling rig company Ensco picked up 7.8 percent. Marathon Oil shares jumped 8.5 percent.
MATERIALS STOCKS Stock in chemicals and mining companies also rose as investors interpreted the increased price of oil as a sign that the global economy was solid. Alcoa shares rose 9.8 percent and shares of Freeport-McMoRan added 12 percent. Dow Chemical stock rose 1.9 percent.
RETAIL POP Consumer stocks also made large gains. The biggest increase was in shares of the e-commerce company Amazon, which climbed 4.4 percent. Shares of the home improvement retailer Home Depot rose 1.9 percent. Automakers rose, as GM stock picked up 2.1 percent and Ford shares added 2.9 percent. Starbucks gained 1.6 percent after the coffee chain said it would change its rewards programs so shoppers who spent less money would get fewer rewards.
THEY GO TOGETHER âStock market prices and oil prices have been tracking each other like a shadow through the first part of the year,â said Michael Scanlon, managing director and portfolio manager for John Hancock Asset Management.
Mr. Scanlon said that usually doesnât happen for long stretches. He said the market is rising and falling with oil prices because when prices go down, investors tend to get concerned about the health of the global economy, and when oil prices rise, they are reassured.
A FLOORING DROP Shares of Lumber Liquidators plunged 15.8 percent after the government said people exposed to some types of its laminate flooring were three times as likely to get cancer as it had originally predicted. The Centers for Disease Control and Prevention said on Monday that the risk of cancer was six to 30 cases per 100,000 people. It previously estimated two to nine cases per 100,000 people.
Lumber Liquidators stock has plunged 80 percent over the last year after CBSâs news show â60 Minutesâ reported that those floors contain high levels of the carcinogen formaldehyde.
DATA CENTER DEAL The data center operator Equinix said it would buy its European competitor, TelecityGroup, for $ 3.3 billion. Equinix has more than 100 data centers in 15 countries, and will gain TelecityGroupâs 39 facilities in 11 European countries. Equinix stock added 1.1 percent.
FOOD DEAL The food service company Sysco Corporation said it would buy Brakes Group for $ 3.1 billion. Last year Sysco gave up on an effort to buy United States Foods for $ 3.35 billion after the Federal Trade Commission opposed the deal. Sysco shares lost 5.5 percent.
INSURERS RISE Shares of the health insurers UnitedHealth and Humana climbed after the government released a policy update for a major type of plan. According to analysts, the Centers for Medicare and Medicaid Services will increase Medicare Advantage plan rates by about 3.5 percent.
Medicare Advantage plans are privately run versions of the governmentâs Medicare program for people who are over 65 or disabled. They offer basic Medicare coverage along with extras like vision or dental coverage or lower premiums.
UnitedHealth stock gained 3.4 percent and Humana shares rose 2.5 percent.
HEALTHY QUARTER Shares of the Botox maker Allergan climbed after the companyâs quarterly results surpassed Wall Street projections. The stock rose 2.9 percent.
EUROPEAN MARKETS European stocks rose as investors hoped for more steps to stimulate the European Union economy. This week, finance ministers from the Group of 20 major rich and developing economies will meet, and they could take new steps to shore up global growth.
In Germany, the DAX was up 2 percent and in France, the CAC 40 gained 1.8 percent. The FTSE 100 rose 1.5 percent in Britain, though the pound was hit hard by concerns over the countryâs popular vote this year on whether to leave the European Union.
POUND The British currency fell to $ 1.412 from $ 1.441 on Friday on worries that Britainâs popular vote on whether to leave the European Union could be closer than expected after a senior politician, Boris Johnson, the mayor of London, joined the âleaveâ campaign. While analysts say the âstayâ campaign is still likely to win the vote in June, the prospect of prolonged uncertainty is unnerving some investors.
ASIAN MARKETS The Nikkei 225 ended up 0.6 percent in Japan, while in Hong Kong, the Hang Seng gained 1.1 percent. The Shanghai composite index rose 1 percent in China. The Kospi closed up 0.1 percent in South Korea. In Australia, the S.&P./ASX 200 advanced 0.8 percent. Markets in Singapore and Jakarta also advanced, while those in New Zealand and Taiwan declined.
CURRENCIES AND BONDS Bond prices slipped, and the yield on the 10-year Treasury note rose to 1.77 percent from 1.75 percent. The euro fell to $ 1.1025 from $ 1.1135 late Friday and the dollar rose to 113.16 yen from 112.56 yen.