All ten sectors posted gains led by energy sector
U.S. stock indices recorded a second session of gains on Tuesday, 15 December 2015 ahead of a long anticipated meeting of the Federal Reserve's interest-rate setting committee. A surge in oil prices helped supported the energy sector and gave stocks a lift as the Fed is slated to raise interest rates at the conclusion of its two-day policy meeting on Wednesday.
The Dow Jones Industrial Average closed 156.41 points, or 0.9%, higher to 17,524.91, while the Nasdaq Composite advanced 43.13 points, or 0.9%, at 4,995.36. The S&P 500 index closed 21.47 points, or 1.1%, higher to 2,043.4.
All 10 major sectors posted gains, led by the energy sector's 2.9% jump. Exxon Mobil was the best-performing stock among the Dow's components, posting a 4.5% gain on the recovery in energy prices.
The Federal Open Market Committee's two-day policy-setting meeting ends Wednesday, and the group is expected to raise interest rates for the first time in nearly a decade.
Among economic news expected for the day, it showed that falling gas and food prices kept consumer prices flat on a seasonally adjusted basis in November, according to the Bureau of Labor Statistics's consumer-price index, or CPI. Market had expected no change at the headline level.
The Empire State general business conditions index came in at negative 4.6 in December, better than 10.7 in November. Market had expected a reading of negative 7.5 for the headline index. Also, home-builder confidence slipped in December for the second month, according to data released by the National Association of Home Builders.
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Among other stocks in focus, shares in 3M tumbled 6% after the conglomerate cut its outlook, while Qualcomm jumped 2.5% as the chip company rebuffed calls for its breakup.
Bullion prices settled with a modest loss on Tuesday, 15 December 2015, the day before a key interest-rate decision from the Federal Reserve that may help determine the outlook for the precious metal.
February gold shed $1.80, or 0.2%, to settle at $1,061.60 an ounce on Comex, ending at its lowest level since 3 December 2015. It traded between a low of $1,057.40 and a high of $1,067.90 during the session. March silver gained 7.5 cents, or 0.6%, to $13.77 an ounce.
Crude oil futures topped $37 a barrel on Tuesday, 15 December 2015 at Nymex as prices continued to rebound from a nearly seven-year low ahead of data that are expected to show a second straight weekly drop in U.S. crude inventories. Traders also pondered the impact of a potential lift to a 40-year-old ban on U.S. crude exports.
Crude-oil futures for delivery in January settled at $37.35 a barrel, up $1.04, or 2.9%, on the New York Mercantile Exchange.
Weekly U.S. crude inventories and production data are due from the Energy Information Administration on Wednesday. Traders believe U.S. crude stocks will show a decline of 2.5 million barrels for the week ended 11 December 2015.
Meanwhile, Congress is likely to lift its ban on oil exports as part of broader spending and tax legislation, citing congressional aides of both parties.
Investor participation was ahead of average as more than 940 million shares changed hands at the NYSE floor.
Tomorrow, weekly MBA Mortgage Index will be reported at 7:00 ET while November Building Permits (consensus 1.15 million) and Housing Starts (consensus 1.135 million) will be reported at 8:30 ET. The November Industrial Production report (consensus 77.5%) will cross the wires at 9:15 ET and the latest policy decision from the Federal Open Market Committee will be released at 14:00 ET (consensus 0.5%).
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