Stock averages end higher, each up around 0.7% and in the middle of
the day's range. Stocks shed early declines after government data
showed shrinking oil inventories, sending up crude prices and related
energy shares, and soothing the recovery concerns of a nervous Wall
Street.
Stocks edged off their session lows around mid-morning as oil
prices rallied. Oil gained after the Energy Department reported that
crude supplies plunged by 8.4 million barrels last week instead of
rising by 1.1 million barrels as analysts surveyed by Platts had
expected.
The jump in oil was enough to temper worries sparked by falling
Chinese stocks. Overnight, China's top stock markets saw sharp declines
today, triggering the global sell-off. The Shanghai Composite Index
fell 4.3% and the Shenzhen Composite Index ended 4.9% lower.
Oil closed up $3.23 or 4.7% at $72.42 a barrel, its highest closing level since early June.
Hewlett-Packard (
) sat out the broad market rebound. The company
beat Q3 estimates but offered mixed guidance when it released results
last evening.
Alcoa (
) fell following a Goldman Sachs downgrade to "neutral." The firm removed the stock from its "Buy list."
Deere & Co. (
) closed down more than 3%, having given up its
premarket gains made after it beat with Q3 results. The company trimmed
its outlook.
Homebuilders DR Horton (
) and Toll Brothers (
) were both lower after Stifel Nicolaus cut each stock to "sell."
Candela (
) continued last evening's sharp run-up after the
company reported Q4 revs of $31.4 mln, down from $37.4 mln in the year
ago quarter.
