NEW YORK (Reuters) – Stocks rose on Friday as energy shares were boosted by a jump in crude oil prices and wholesale inventory data pointed to rising consumer demand. Energy shares advanced as crude futures traded up almost 3 percent, well above $76 per barrel, after the forced shutdown of the biggest pipeline supplying Canadian oil to refineries in the U.S. Midwest and to a key storage hub in Oklahoma.
Occidental Petroleum Corp (OXY.N) gained 1.7 percent to $78.88 and National Oilwell Varco Inc (NOV.N) added 1.8 percent to $40.65. The PHLX oil services sector index (.OSX) gained 2.3 percent.
U.S. wholesale inventories surged by the largest amount in two years in July, government data showed, a sign firms were anticipating enough demand to boost their stocks this summer.
Consumer discretionary shares advanced, with Sears Holding Corp (SHLD.O) up 3.1 percent to $66.95. The S&P discretionary sector index (.GSPD) gained 1.1 percent.
«There’s been a resurgence in optimism about the economy, and that’s directly linked to oil demand. I’d expect the trend of higher oil prices to continue,» said Peter Jankovskis co-chief investment officer at OakBrook Investments LLC in Lisle, Illinois.
The Dow Jones industrial average (.DJI) gained 33.60 points, or 0.32 percent, to 10,448.84. The Standard & Poor’s 500 Index (.SPX) added 4.92 points, or 0.45 percent, to 1,109.10. The Nasdaq Composite Index (.IXIC) rose 8.09 points, or 0.36 percent, to 2,244.29.
The gains returned the Dow industrials to positive territory for the year, with indexes heading for the seventh rise in eight sessions.
Chipmaker shares capped gains after National Semiconductor Corp (NSM.N) and Texas Instruments Inc (TXN.N) issued quarterly financial targets that stoked investor worries about a sluggish economy.
National Semi shares tumbled 6.5 percent to $12.06 and Texas instruments dropped 0.6 percent to $23.70. The PHLX semiconductor index (.SOX) dropped 1 percent.
«We did have a surge in sales (earlier in the year), but companies are getting a little nervous again. I think we’re going to continue to see that start-stop pattern in technology spending,» said Jankovskis.
Sector bellwether Intel Corp (INTC.O) warned August 27 that third-quarter revenue could fall short of its own estimates by more than $1 billion. Its shares were unchanged Friday.
U.S.-traded shares of Nokia Corp (NOK1V.HE)(NOK.N), the world’s top cellphone maker, rose 2.7 percent to $10.02 after the company said it hired Microsoft Corp’s (MSFT.O) Stephen Elop to replace Nokia’s embattled chief executive.
Reports that Deutsche Bank (DBKGn.DE)(DB.N) plans to raise capital pressured European markets lower. Deutsche Bank shares traded in Frankfurt fell 4.4 percent but the New York-traded stock was up 1.3 percent at $60.73.