U.S. stocks trimmed their gains after oil prices weakened further, blunting an advance among energy companies as equities have struggled for direction before next week’s Federal Reserve policy meeting.
Weakness in energy and industrial shares have helped keep equities from making any meaningful advance since the benchmark reached a more than three-month high in early November. Airlines boosted industrials today, while Chevron Corp. added 2.1 percent after cutting its 2016 spending plans.
The S&P 500 rose 0.3 percent to 2,052.72 at 12:38 p.m. in New York, paring an earlier 0.8 percent climb. Gains lost momentum at the index’s 200-day moving average. The Dow Jones Industrial Average added 65.11 points, or 0.4 percent, to 17,557.41, and the Nasdaq Composite Index gained 0.3 percent.
With the Fed’s rate-setting meeting less than a week away, the S&P 500’s performance this December is proving an exception to the historical trend for the month — typically the strongest for global equities. An early rally fizzled yesterday as Apple Inc. paced technology-share declines, while renewed worries about the pace of global growth erased all the benchmark index’s 2015 gains.
Source : Bloomberg