Stocks Advance With Dow at Record High in US Intraday

Stocks in the US mostly climbed on Wednesday afternoon, with the Dow Jones Industrial Average set for a record high as oil prices surged on a deal by key crude producing nations to reduce their output.

Energy shares surged 5.2% on the Standard & Poor’s 500, leading just four of the 11 sectors but driving a move higher in the broader index, which touched an intraday record earlier in the session. Financials were up 1.4% while utilities declined 2.4% in the steepest loss. The Nasdaq Composite fell on weakness in technology and health care stocks.

The Organization of Petroleum Exporting Counties said it will cut production by 1.2 million barrels a day to 52.5 million barrels, with effect from Jan. 1. Oil prices had fluctuated in recent days on speculation that an agreement wouldn’t be reached, but West Texas Intermediate surged almost 9% on news of the deal to $49.29 a barrel.

Chevron (CVX) gained 2.8% and Exxon Mobil (XOM) rallied 2.4% to be among the top gainers on the Dow. Goldman Sachs (GS) posted the biggest advance, climbing 3.3% as banking stocks rallied on outlook for higher interest rates. Bank of America (BAC) gained 4.1% and Citigroup (C) added 1.6%.

Economic data added support to the belief that the Federal Reserve will raise rates at its December meeting. The probability of a hike stood at almost 99% on the CME Group’s FedWatch tool. The private sector added 216,000 new jobs in October, beating Wall Street estimates for a gain of 160,000. Consumer spending increased 0.3% while incomes rose 0.6%, and manufacturing in the Chicago Fed area accelerated to its highest level in over a year. Pending home sales was the only miss with a 0.1% gain in October versus estimates for a 0.2% rise.

GoPro (GPRO) rose 3.2% after it announced plans to cut about 15% of its workforce to cut costs. American Eagle Outfitters (AEO) lost 14% after issuing downbeat guidance for the fourth quarter. Autodesk (ADSK) slid 2.8% after swinging to a third quarter loss and guiding for fourth quarter revenue below the Street consensus.