Markets Right Now: Energy sector leads early gains in stocks

NEW YORK (AP) — The Latest on developments in financial markets (all times local):

9:40 a.m.

Energy stocks are leading an early gain on Wall Street as the market stabilizes after two days of losses.

Oil producers were rising in early trading Thursday as the price of oil jumped about 3 percent. Newfield Exploration climbed 6 percent.

Several companies were also rising after reporting earnings that beat analysts’ forecasts. Discovery Communications and Allstate each rose 5 percent.

The Dow Jones industrial average rose 48 points, or 0.3 percent, to 17,697.

The Standard & Poor’s 500 index added four points, or 0.2 percent, to 2,055. The Nasdaq composite edged up 10 points, or 0.2 percent, to 4,735.

Bond prices fell. The yield on the 10-year Treasury note rose to 1.79 percent.


9:40 a.m.

European markets are making solid gains after a difficult start to May that had its roots in concerns over the state of the global economy, primarily the scale of the slowdown in China.

The mood appears to have steadied somewhat in the run-up to Friday’s nonfarm payrolls report for April.

The economic data that’s come out of the U.S. this week has been mixed, with the private payrolls report from ADP worse than anticipated.

Kit Juckes, a strategist at Societe Generale, is cautioning against reading too much from the ADP release for April as it has a “poor correlation” with the official data and, in any case, the 156,000 jobs it estimated wasn’t far off the recent average. “In other words, it tells us very little,” Juckes said.

Germany’s DAX is up 0.7 percent at 9,902 while the CAC-40 in France has risen 0.4 percent to 4,341. The FTSE 100 index of leading British shares is up 0.6 percent at 6,150.

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