US shares rose by Thursday close, reversing earlier declines, after oil stockpiles recorded another weekly drop.
Although the drop in oil inventories from the Energy Information Administration's data were not as pronounced as had been estimated, they were another sign of drying up reserves which bode well for still-depressed oil prices. The West Texas Intermediate, a gauge of US energy prices, was up 0.02% at $49.02, although off earlier gains.
The S&P 500 index ended up 0.28% at 2,105, but as so often in recent weeks, it was the smaller cap stocks which led the gainers.
The S&P Midcap 400 was up 0.5% at 1,506 - a fresh 2016 higher - and led by Joy Global Inc (NYSE:JOY), up more than 22% after stronger than expected earnings results. Read more.
The S&P Smallcap 600 was up 0.33% at 712 - also a fresh 2016 high.
Midsession
US stocks recovered at midsession on Thursday - as did oil prices - after OPEC supply deal setback was brushed aside when US oil inventories were reported falling in the latest weekly data.
US crude inventories declined last week, following a sharp fall in the week prior, as demand for energy products rose and suppliers continued cutting back on production.
Crude stocks fell by 1.4mln barrels last week, a more modest amount than the 2.7mln barrels that Wall Street forecast, following a 4.2mln barrel fall the previous week, the Energy Information Administration reported. Still, stocks remain at “historically high” levels for this time of the year, the EIA said.
The S&P 500 index snapped from declines and was up 0.16% at 2,102, while the S&P Midcap 400 was up 0.25% at 1,502, while the S&P Smallcap 600 was up 0.2% at 711.
The US oil benchmark West Texas Intermediate was up 0.4% at $49.19. Earlier, US crude oil prices had been down after members of the Organization of Petroleum Exporting Countries failed to strike a deal to cap crude production despite the global supply glut.
But tech stocks were weighed down after Apple Inc (NASDAQ:AAPL) shares fell 1% to $97.49 after brokers at Goldman Sachs cut its price target for the company due to an expected decline in smartphone sales.
Open
US shares opened lower on Thursday, taking the cue from European indices and the oil price, which was falling.
The cartel OPEC, meeting in Vienna, reportedly put no cap on output as some had hoped, prompting continued fears about the state of the global oil market and when it will stabilise.
Over the past two years, the price of oil has fallen off a cliff due to oversupply and sluggish demand.
US crude is down 1.57% to stand at US$ 48.24 at the time of writing having earlier been above the psychologically significant US$50 mark.
The benchmark Dow Jones is down over 46 points at 17,743, while the S&P500 lost 4.91 at 2,094 and the tech heavy Nasdaq is down over six points at 4,945.
The S&PMidcap400 is down 0.3% to 1,493, while the S&PSmallcap 600 is down 0.38% to 707.38.
FTSE100 at the time of writing is up 0.11%, or 7.42 to 6,200.
Investors appeared to brush aside positive news that private employers increased hiring last month (May) and that new applications for unemployment benefits fell last week.
In company risers, Ciena Corporation (NYSE:CIEN) was up over 12% as its quarterly results exceeded Wall Street's expectations.