This morning from Yahoo:
Monday March 23, 7:19 am Eastern Time
London U.S. stocks gain on deal to cut oil output
LONDON, March 23 (Reuters) - A weekend deal to prop up crude oil prices boosted U.S. stocks in London on Monday and could push the Dow higher after possible initial weakness.
By 1110 GMT Mobil Corp (MOB - news) was bid at $79 from its New York close of $78-9/16, Texaco Inc (TX - news) was bid at $61-3/4, up $1/2, Chevron Corp (CHV - news) at $87-1/2 up $9/16.
''It will be a rotational market with oils strong and weakness elsewhere,'' said one trader. ''I wouldn't be surprised if we make new highs at the end of the day.''
June S&P futures traded at 1106.60 on Globex, three points off their estimated fair value, indicating a weak Dow open.
Dealers forecast the Dow could open some 10 to 15 points lower, after the expiry of futures and options on Friday helped to propel the index to its fifth straight record close, above 8,900 for the first time.
''The market normally tends to sell off on the Monday after a triple witching, but I think this oil news will push us higher later in the day,'' said one trader.
OPEC members Saudi Arabia, Venezuela and Mexico unexpectedly reached an agreement on Sunday to slash up to two million barrels a day from saturated global oil markets, causing oil prices to surge.
In London, May Brent crude futures hit $15 briefly after opening and then eased back to trade at $14.96 by 1154 GMT. Oil prices had recently plunged to nine-year lows below $12 due to overproduction, slowing Asian demand and brimming storage tanks.
Oil service stocks Schlumberger Ltd(SLB - news) traded as high as $76-3/4, over $3 up and Halliburton Co(HAL - news) was up $1 at $49.
''These stocks are much more volatile than some of the big oil stocks and are recovering from very depressed levels so they are probably going to benefit a bit more than the major oils,'' said a dealer.
He noted however, that the oils had already made gains on Friday, in anticipation of good news in the near future.
Elsewhere, the benchmark 30 year Treasury bond was facing some pressure from fears of commodity inflation and down 1/4 point at 103-05, dealers said.
Otherwise, there was no major economic data due on Monday and market-moving newsflow was subdued apart from the oil deal. |
