U.S. stocks halted a two-day drop as a jump in home sales bolstered confidence in the economy, while oil plunged for a third day. The yen weakened after the Bank of Japan increased its asset-purchase program.
The Standard & Poor’s 500 Index added 0.2 percent to 1,462.08 at 10:18 a.m. in New York. Oil lost 2.5 percent to $92.92 a barrel, extending its three-day slide to more than 6 percent. The yen retreated against all 16 major peers, while the dollar declined versus 11. Ten-year Treasury yields decreased four basis points to 1.77 percent while Spanish debt rose for a second day.
Japan’s currency fell against all of its 16 major peers. Photographer: Kiyoshi Ota/Bloomberg
Sept. 19 (Bloomberg) -- Stephen Cohen, managing director at BlackRock Inc.'s iShares unit, talks about investment strategies. He speaks with Francine Lacqua on Bloomberg Television's "On the Move." (Source: Bloomberg)
Sept. 19 (Bloomberg) -- Jason Trennert, chief investment strategist at Strategas Research Partners, talks about the outlook for U.S. stocks. Trennert speaks with Tom Keene and Sara Eisen on Bloomberg Television's "Surveillance." (Source: Bloomberg)
U.S. benchmark equity indexes turned higher after the National Association of Realtors reported that purchases of previously owned homes increased 7.8 percent to a 4.82 million annual rate, a two-year high. The Bank of Japan said it will increase its asset-purchase fund to 55 trillion yen ($697 billion) from 45 trillion yen, joining the Federal Reserve and the European Central Bank in taking steps to prod the economy.
“The U.S. economy is looking pretty good,” George Young, a partner at St. Denis J. Villere & Co. in New Orleans, said in a phone interview. His firm oversees about $1.6 billion. “The low interest rate environment created by the Fed is beginning to inject some strength into the minds of consumers.”
Consumer-discretionary, raw-material and telephone companies led gains among the 10 main industry groups in the S&P 500 today. PulteGroup Inc. and D.R. Horton Inc. climbed at least 2.8 percent to lead an advance in all 11 stocks in an S&P gauge of homebuilders.
‘Too High’
Oil slid amid concern U.S. demand is faltering and as Saudi Arabia planned to reduce prices by pumping about 10 million barrels a day and produce more if customers demand it, a Persian Gulf official with knowledge of the matter said yesterday.
“BOJ stimulus measures did offer some support initially, but at some point the fundamental drivers need to be reflected, so we think the Saudi story is the primary driver today,” said Michael Hewson, a London-based analyst at CMC Markets. “Oil is way too high, especially Brent, when you consider the fundamentals.”
The more-active November oil futures contract slid 2.6 percent to $93.16 a barrel, down more than 6 percent in three days. Brent crude futures lost 2.6 percent to $109.13 a barrel and have tumbled 6.5 percent this week.
The S&P GSCI Index of raw-materials retreated 1.5 percent, extending this week’s slide to 4.9 percent and falling to a one- month low. Energy products had the five biggest declines among the 24 commodities tracked by the index, followed by losses of at least 0.8 percent in coffee and aluminum.
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