US stocks climb higher as energy companies surge
NEW YORK >> U.S. stocks are rising Monday as energy companies gain in tandem with the price of oil. Oil jumped to its highest price in more than a year after Russia's government said it supports efforts by OPEC to cut oil production. Apple is climbing after new reports of fires affecting Samsung's Galaxy Note 7 phone, which competes with Apple's iPhone.
KEEPING SCORE: The Dow Jones industrial average jumped 107 points, or 0.6 percent, to 18,347 as of 2:55 p.m. Eastern time. The index rose as much as 159 points earlier. The Standard & Poor's 500 index rose 12 points, or 0.6 percent, to 2,165. The Nasdaq composite added 46 points, or 0.9 percent, to 5,338.
ENERGY: Russian President Vladimir Putin said Monday that Russia supports OPEC's efforts to cut oil production. In late September the nations of OPEC announced a preliminary agreement to trim oil production, but Russia, a major energy producer, isn't a member of OPEC.
Benchmark U.S. crude rose $1.53, or 3.1 percent, to $51.35 a barrel in New York. That was its highest closing price since July 2015. Brent crude, used to price international oils, gained $1.21, or 2.3 percent, to $53.14 a barrel in London. Exxon Mobil climbed $1.62, or 1.9 percent, to $88.36 and Murphy Oil added 64 cents, or 2.2 percent, to $30.15.
SAMSUNG'S PAIN, APPLE'S GAIN: Apple climbed $2.66, or 2.3 percent, to $116.72 as investors hope it will be able to sell more iPhones as competitor Samsung faced new problems with its Galaxy Note 7. Samsung said it has changed its production of the phones following reports that some of its replacement phones are overheating and catching fire, just as the original version of the phone did before Samsung recalled it last month.
SHOT IN THE ARM: Drugmaker Mylan gained $3.17, or 8.8 percent, to $39.11. On Friday the company agreed to pay $465 million to settle allegations it overcharged the Medicaid program for its EpiPen allergy shot. Legislators and federal health authorities had said Mylan wrongly classified EpiPen as a generic drug instead of a brand-name one, which meant Mylan paid lower rebates to federal and state Medicaid programs. The stock is down 20 percent since late August.
BRISTOL BUMPED: Bristol-Myers Squibb plunged again after the company reported more data from a study of its drug Opdivo in lung cancer patients. It fell $5.66, or 10.2 percent, to $49.76. Rival Merck rose $1.10, or 1.8 percent, to $63.87 as investors were pleased with results from a study of its cancer treatment Keytruda. Bristol-Myers stock has dropped 34 percent since the company announced initial results from that trial in early August, which has sent to almost two-year lows. Merck is up 10 percent over the same time.
TWITTER BLOCKED: Social media network Twitter continued to fall as investors grew less optimistic that the company will be sold. Twitter sank $2.66, or 13.4 percent, to $17.19. It fell 20 percent Thursday on reports that possible buyers including Apple and Alphabet had decided not to make offers.