(MENAFN- ProactiveInvestors) U.S. stocks closed sharply higher Wednesday as oil prices rebounded with the S&P 500 snapping a 5-day losing streak.
At the closing bell in New York the Dow Jones Industrial Average settled up 212 points at 17584 while the Nasdaq rose 57 points to end at 4650 and the S&P 500 gained 23 points to finish at 2026.
The Dow plunged 130 points on Tuesday while the S&P 500 fell back 0.9% posting its fifth loss in a row in the worst start to a year ever.
While oil prices slid further earlier this morning to below $47 a barrel U.S. crude in New York rebounded. WTI for February delivery increased 72 cents to settle at $48.65 a barrel on the New York Mercantile Exchange. It earlier touched $46.83 the lowest intraday level since April 2009.
The oil minister for United Arab Emirates said crude prices could recover if non-OPEC producers "act rationally" and curb planned output increases. Traders also took in a surprise drop in US crude inventories which declined by 3.1 million barrels in the week that ended Jan. 2 the Information Administration said Wednesday.
On the economic front ADP reported that the US private sector added 241000 jobs in December less than the 250000 expected. The news leads up to Friday's government employment report for December which is anticipated to show a total of 240000 nonfarm payrolls and an unemployment rate of 5.7%.
Later in the morning the government reported that the U.S. trade deficit fell 7.7% in November to $39 billion on lower oil prices and crude imports. Economists were expecting a deficit of $42 billion.
Gains were added after minutes from the Fed's last policy meeting signalled the central bank is on course for the first interest rate increase since 2006. Fed officials said they don't need to see inflation pick up before hiking rates according to minutes from the December meeting as lower energy prices and the stronger dollar are likely to keep inflation below the Fed's 2% target for some time.
Meanwhile eurozone's inflation rate fell into negative territory in December for the first time since 2009 adding more pressure on the ECB to launch a Fed-style bond buying program. Consumer prices contracted by 0.2% year-over-year in December with the euro sliding to a fresh nine-year low prior to the release of the figures. European markets finished higher today led by shares in London. Asian markets also closed in the green.
In corporate activity J.C. Penney () said same store sales rose 3.7% in November and December with shares rising over 20%.
() also climbed 1.3% after the company reported better than expected earnings and sales for its fiscal first quarter.
() fell 2.5% after the chipmaker released weak sales guidance late Tuesday. Earnings in its fiscal first quarter topped estimates however while revenue fell short.
In other news audio equipment maker Monster has sued 's () Beats Electronics its co-founders and smartphone maker HTC over alleged fraud and deceit in the way Beats acquired control of the rights to "Beats by Dr. Dre" headphones. acquired Beats for $3.2 billion last year.
Keurig Green Mountain () has signed a deal to make Dr Pepper Sn's() sodas in Keurig's planned cold drink machine. The device is expected to come to market in September. Shares of Keurig climbed over 4.5% Wednesday.
(NYSE:RDS.A) has agreed to pay $83.4 million in a settlement for two oil spills in Nigeria which occurred in 2008.
Gold for February delivery fell 0.7% to $1210.70 an ounce snapping a three session winning run today.
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