US government debt might have enjoyed buying interest on fears of lacklustre economic growth on Thursday but Wall Street shares packed a third successive rally into the closing hours thanks to firm oil prices.
Although negative at midsession, the Dow Jones Industrial Average ended up 0.3% at 16,943, the broader S&P500 index gained 0.35% to 1,993, and the tech-heavy Nasdaq Composite was 0.1% higher at 4,707.
Chesapeake Energy (NYSE:CHK) which rose by 26% to $4.29, led the gainers on the S&P500 index for a second day.
Treasury yields retreated Thursday from a one-month high reached the previous session, after a flurry of economic data pointed to lacklustre US growth, ahead of the non-farm payrolls report due on Friday.
But US oil benchmark West Texas Intermediate appeared to do enough to give stockmarket tickers the impetus they needed to gain for a third consecutive day. The contract was up 0.1% at $34.69.
Midsession
US shares were soft at midsession on Thursday as mixed data before the key non-farm payrolls release on Friday gave investors jitters.
The Dow Jones Industrial Average was down 0.3% at 16,843, while the broader S&P500 index was down 0.1% at 1,985. The tech-heavy Nasdaq Composite was 0.3% lower at 4,690.
Checking deeper declines for stocks, oil prices were firmer. The West Texas Intermediate wsa up 0.2% at $34.72.
Shares of Herbalife (NYSE:HLF), the nutrition supplements, weight management, sports nutrition and personal-care products maker, were down 7.7% at $52.03 after the company said it had overstated growth in the number of new members due to a database error.
Open
Stocks took a step back at the outset, with sentiment hit by softer oil prices and some mixed economic data.
The S&P 500 was off nine points at 1,9778 and the Dow Jones average was down 34 at 16,865, while the Nasdaq Composite shed 19 points at 4,686.
First time jobless claims rose last week by 6,000 from the preceding week to 278,000, while the productivity of US businesses fell an annualized 2.2% in the fourth quarter, though that was a smaller fall than expected and a narrower change than the initial estimate of a 3.0% fall.
Grocery chain Kroger (NYSE:KR) led the blue-chips lower after reporting disappointing fourth quarter sales numbers. The shares shed 6.9%.
Mining and equipment services provider Joy Global (NYSE:JOY) shot up 15% despite the company sliding into the red in the fourth quarter to the tune of $22.4mln, versus a profit the year before of $29.2mln.
The market was cheered by news the company is now targeting more than $100mln in cost reductions this year.
Among the small caps, Verastem (NASDAQ:VSTM) was wanted after the cancer stem cell specialist said it had started 2016 with a strong balance sheet and with an expectation of significant progress from its drug development programs.
The shares advanced 26% to $1.59.
Sector peer Contravir Pharmaceuticals (NASDAQ:CTRV) climbed 15% to $1.08 after it reported positive results for its shingles treatment.
Preview
US stocks look set for a hesitant start ahead of weekly jobless claims and revised non-farm productivity figures.
Investors are also more likely to sit on their hands ahead of the market-moving non-farm payrolls numbers for February, due out tomorrow.
Spread betting quotes point to the S&P opening a point or two lower, while the Dow Jones average is squaring up to a fall of 14 points or so.
The oil price was holding steady prior to the open of equity markets, while the spot price for gold nudged up 0.3% to $1,243.52 an ounce.
On the corporate front, retailer Costco Wholesale (NASDAQ:COST) was 2.1% lower in pre-market trading after posting an 8.7% year-on-year fall in fiscal second quarter profit.
On the plus side, the retailer posted an improvement in like-for-like sales for the first time in nine quarters.