Wall Street ends higher, driven by energy amid global tension

Tue Nov 24, 2015 4:38pm EST
 
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By Sinead Carew

(Reuters) - U.S. shares closed higher on Tuesday as energy stocks rose along with oil prices after Turkey shot down a Russian warplane near the Syrian border.

The three major U.S. indexes recovered from a morning selloff that was triggered by the overseas news despite some strong U.S. economic data.

Oil prices were up more than 2 percent after a spike in Middle East tensions.

"You came in this morning and everybody was talking about this potential escalation of violence between Turkey and Russia," said Andrew Frankel, co-president of Stuart Frankel & Co in New York. He added that investors settled down after it appeared that Russia's response would not be as confrontational as they initially feared.

Relatively light trading appeared to exaggerate swings in the market, according to Frankel, as many market participants were away ahead of the U.S. Thanksgiving holiday. Markets will be closed all day Thursday and close early Friday.

The Dow Jones industrial average .DJI rose 19.51 points, or 0.11 percent, to 17,812.19, the S&P 500 .SPX gained 2.55 points, or 0.12 percent, to 2,089.14 and the Nasdaq Composite .IXIC added 0.33 points, or 0.01 percent, to 5,102.81.

Investors steered clear of many of Nasdaq's higher-valuation stocks like Netflix (NFLX.O: Quote) and instead took safety in cheaper stocks due to geopolitical concerns, according to J.J. Feldman, portfolio manager at Los Angeles-based Miracle Mile Advisors.

"When you get that kind of thing people say they're going to get out of the high-flyer expensive P/E stocks and into the flight-to-quality value stocks that have been beaten down," he said.   Continued...

 
Traders work on the floor of the New York Stock Exchange November 24, 2015. REUTERS/Brendan McDermid