US shares nudged higher on Tuesday thanks to solid gains by oil prices.
But the energy sector gains came all too late to save US oil titan Exxon Mobil (NYSE:XOM) from losing its triple-A credit crown after 60 years. Exxon Mobil and corporate America suffered a blow to their prestige when Standard & Poor's stripped the oil giant of its top-tier triple-A credit. Now only two companies in the US still have AAA status: Microsoft Corp. and Johnson & Johnson.
Analysts said it demonstrated that even oil titans are being hardshly affected by depressed commodity prices. But at least after the initial shock saw Exxon shares dip they ended up 0.3% at $87.60.
The broad-based S&P500 was up 0.19% at 2,091 while the S&P Midcap 400 was up 0.9% at 1,482 and the S&P Smallcap 600 was up 1.3% at 705.
The US oil benchmark West Texas Intermediate was up 3.1% at $43.94 - having earlier scaled $44.14, its highest since early November.
Midsession
Wall Street shares edged higher at midsession on Tuesday after solid gains by oil prices lifted a market counter-weighed by earnings season.
The S&P500 was up 0.02% at 2,088 while the S&P Midcap 400 was up 0.5% at 1,477 and the S&P Smallcap 600 was up 0.8% at 701.
The US oil benchmark West Texas Intermediate was up 3.1% at $43.94 - having earlier scaled $44.14, its highest since early November.
Checking gains, investors were uneasy as the Federal Reserve's two-day rate-setting meeting commenced while drug developer Sarepta Therapeutics (NASDAQ:SRPT) plummeted by more than a third after a key FDA panel said its muscular dystrophy drug eteplirsen, based on evidence, was not effective. The shares were last seen down 26% at $11.18.
Among bellwether stocks, Procter & Gamble Co (NYSE:PG), the consumer products behemoth, reported a better-than-expected third quarter profit, boosted by cost-cutting and higher selling prices. However, sales declined for the seventh quarter in a row as higher prices weighed on volumes and as the company consolidates its product portfolio to focus on faster-growing brands. P&G shares were down 2.2% at $79.61.
Open
US shares painted a mixed picture at the open, as traders digested a raft of earnings and attention turns to the start of the Fed policy meeting today.
The benchmark Dow Jones was down around 10 at 17,965, while the Nasdaq was also seeing red - the index 8.69 lower to stand at 4,887.
The broader based S&P500 was up a shade at 2,088 - up 0.05%.
The S&P400 Midcap was up 0.24% to 1,472, while the S&P600smallcap was also higher - up 0.32% to stand at 698.47.
The most common view is that Janet Yellen, Fed chair, will strike a cautious tone on interest rates after the two day meet, amid tempered economic growth.
Oil is going higher providing a boon for oil stocks with US crude up 1.69% to stand at US$43.36 a barrel.
In terms of corporate movers, grocery store chain SuperValu (NYSE:SVU) jumped 6.31% to US$5.48 as its profits beat estimates.
Elsewhere, drug developer Sarepta Therapeutics (NASDAQ: SRPT) plummeted over 35% to stand at US$9.54 after a key FDA panel said its muscular dystrophy drug eteplirsen, based on evidence, was not effective.