NEW YORK (Reuters) – U.S. stocks rose on Tuesday as energy stocks led the SP 500 and Dow, while Biogen’s rally on news about an experimental treatment for Alzheimer’s disease topped gains at the Nasdaq.
The day’s gains were broad, with nine of the 10 SP 500 industry sectors higher. The only group to fall was telecoms .SPLRCL, down 1.8 percent with ATT (T.N) down 2.2 percent at $34.29 and Verizon (VZ.N) down 1.8 percent at $49.11. Sprint announced it will cut in half the monthly price of service for Verizon and ATT customers who switch to Sprint.
Energy shares on the SP 500 .SPNY rose 1.3 percent even as crude oil prices resumed their fall. U.S. crude CLc1 fell 2.4 percent to near a five-year low while Brent LCOc1 lost 2.3 percent.
Exxon Mobil (XOM.N) and Chevron (CVX.N) were among the largest gainers on both the Dow and the SP, up about 2 percent each.
“The market is sniffing out a bottom in the underlying commodity and we are seeing a bounce in energy stocks from having been oversold in the last month or so,” said John Manley, chief equity strategist at Wells Fargo Funds Management in New York.
“It’s in no one’s interest for oil to go any lower; not in ours, or OPEC’s,” he said, adding that it is still a big benefit for consumers but the marginal gain with even lower gas would not be much bigger.
The Dow Jones industrial average .DJI rose 102.75 points, or 0.58 percent, to 17,879.55, a record high. The SP 500 .SPX gained 13.11 points, or 0.64 percent, to 2,066.55 and the Nasdaq Composite .IXIC added 28.46 points, or 0.6 percent, to 4,755.81.
Carmaker shares advanced as the top six automakers sold more cars and trucks in November than analysts expected. GM (GM.N) gained 1 percent to $33.26 and Fiat Chrysler (FCAU.N) gained 3 percent to $13.09.
Biogen Idec (BIIB.O) advanced 6.4 percent to $328.27. The company is planning a late-stage trial of its experimental treatment for Alzheimer’s disease after the drug significantly improved cognition in a small early-stage study.
Avanir Pharmaceuticals (AVNR.O) was among the most traded stocks on the Nasdaq, rising 12.8 percent to $16.92. Japanese drugmaker Otsuka Holdings (4578.T) plans to buy it for about $3.5 billion.
About two issues advanced for every decliner on both the NYSE and Nasdaq.
The SP 500 posted 89 new 52-week highs and 5 new lows; the Nasdaq Composite set 102 new highs and 95 new lows.
About 6.6 billion shares changed hands on U.S. exchanges, according to BATS Global Markets data, above the daily average last month of about 6.17 billion.
(Reporting by Rodrigo Campos; Editing by Nick Zieminski)