U.S. stocks traded higher at the start of Wednesday, looking to go for a three-day win streak, helped by a rise in oil prices and some encouraging economic data ahead of the afternoon release of the Fed meeting minutes.
|US market kickstart brightly on Wednesday|
U.S. crude oil futures rose, briefly trading more than 5 percent higher above $30.50 a barrel in mid-morning trade. This was after a news report on the comment made by Iran Oil Minister Bijan Zanganeh on his supports of any effort to stabilize the market and prices of oil. According to news report, Iran oil minister also said in the report the Tehran oil producers meeting was good.
Zanganeh did not explicitly say in his remarks quoted by Shana that Iran would keep its own output at its January level.
The Dow Jones industrial average gained more than 200 points in morning trade with Boeing the top contributor to gains. The Dow transports gained more than 1.5 percent.
The S&P 500 topped the psychologically key 1,900 level in intraday trade for the first time since Feb. 5 and briefly came within 10 percent of its 52-week intraday high, out of correction territory. Materials and energy led advancers.
The volatility of the market is so real that we have been seeing a downtrend and uptrend now and then whenever there are any news related to oil supply or the growth of China. Some analysts were reported by CNBC as saying the rally is going to run out of steam pretty soon due to some irrational exuberance going at the moment.
In economic news, industrial production for January rose 0.9 percent, while capacity utilization was 77.1 percent.
U.S. producer prices unexpectedly rose last month, rising 0.1 percent after falling 0.2 percent in December. Excluding food and energy, PPI rose 0.4 percent.
Housing starts fell 3.8 percent in January, while building permits fell 0.2 percent.
Treasury yields edged higher after the data, with the 2-year yield at 0.74 percent and the 10-year yield at 1.81 percent.
The U.S. dollar index traded mildly higher against major world currencies, with the euro at $1.11 and the yen at 114.25 yen against the greenback.
The Federal Reserve is scheduled to release the minutes from its latest meeting at 2 p.m. ET. St. Louis Fed President James Bullard is due to speak after the market close.
The Dow Jones industrial average and S&P 500 were on track for their first three-day win streak of 2016.
In morning trade, the Dow Jones industrial average gained 122 points, or 0.74 percent, to 16,317, with Caterpillar leading advancers and McDonald's the only decliner.
The S&P 500 traded up 16 points, or 0.83 percent, to 1,911, with financials leading nine sectors higher and utilities the only decliner.
The Nasdaq composite gained 42 points, or 0.96 percent, to 4,478.
About eight stocks advanced for every decliner on the New York Stock Exchange, with an exchange volume of 69 million and a composite volume of 193 million in morning trade.
Crude oil futures for March delivery gained 63 cents to $29.67 a barrel on the New York Mercantile Exchange.