US stocks ended higher on Wednesday after oil prices rose assuredly above $51 a barrel on supply concerns and another weekly US stockpile fall, handing small-caps their highest levels since July.
The bellwether S&P 500 ended up 0.3% at 2,119, while the S&P Midcap 400 was up 0.4% at 1,525. For mid-caps this marked their best level since mid-July 2015.
The small-caps fared even better in terms of intraday moves. The S&P Smallcap 600 rose by 0.9% to 726 – again its highest since mid-July, while the wider Russell 2000 was up 0.8% at 1,188 – its highest since early December.
The US government reported domestic crude oil stocks shrank by 3.2mln barrels last week, a third consecutive drop and half a million more than the amount forecast by analysts. The decline came as refiners processed more oil and importers delivered less.
The US oil benchmark WTI closed up 2.3% at $51.53.
Midsession
US stocks soldiered on higher at midsession on Wednesday, building upon the previous day’s gains, as oil prices continued their ascent into $51 territory, hitting a 11-month peak and smaller-cap stocks reaching July highs too.
The bellwether S&P 500 was up 0.24% at 2,117 and led by energy stock Chesapeake Energy Corp (NYSE:CHK).
The S&P Midcap 400 was up 0.4% at 1,524 – its highest since mid-July 2015 - and led by United States Stell Corp (NYSE:X) and Denbury Resources (NYSE:DNR).
The S&P Smallcap 600 was 0.9% at 726 – its highest since mid-July 2015 - and led by advertising agency Harte-Hanks (NYSE:HHS), AK Steel Holding Corp (NYSE:AKS) and Pioneer Energy Services Corp (NYSE:PES).
Stocks were buoyed as the US oil benchmark WTI scaled gains of 1.25% to $51.04. Earlier it reached a session high of $51.34 – its highest level since mid-July 2015. Meanwhile, Brent crude climbed as much as 2.1% to touch $52.54, the highest price since last October.
Open
As indicated, US shares started higher, although the tech heavy Nasdaq index lost ground.
The oil price was also continuing the upward trend, with US crude up 1.49% to US$51.11 at the time of writing.
The Dow Jones was up 0.16% at 17,966, while the S&P500 added 0.11% to 2,114 and the Nasdaq gained 0.05% to 4,959.
The S&PMidcap 400 gained 0.26% to 1,522, while the S&P600 small cap added 0.31% to 722.37.
It came as traders mulled slightly confusing jobs data, which showed US employers advertised the most open jobs in the nine months to April but pulled back on filling them.
This would suggest nervousness about economic growth.
Job openings rose 2% to 5.8 million, yet hiring slipped for the second straight month to just under 5.1 million.
In company news, a standout riser was renewable chemicals and advanced biofuels company Gevo (NASDAQ:GEVO), adding over 96% to US$1.19, as the first two commercial flights using its renewable alcohol to jet fuel (ATJ) took place yesterday.