Wall Street rises on earnings despite oil price pressure, dollar climbs

Tue Feb 7, 2017 4:54pm EST
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By Hilary Russ

NEW YORK (Reuters) - Wall Street ended higher on Tuesday boosted by corporate earnings, while the dollar climbed to a more than one-week high on technical buying and political uncertainty in Europe.

Even so, U.S. stocks pared earlier gains as oil dropped, pressured by growing gasoline stockpiles in the United States and evidence of a revival in U.S. shale production.

"U.S. shale is coming back, and it's coming back strong," said Societe Generale oil analyst Michael Wittner.

Brent crude LCOc1 settled down 67 cents, or 1.2 percent, at $55.05 a barrel while U.S. crude CLc1 ended 84 cents, or 1.6 percent, lower at $52.17.

The weakness in oil dragged down U.S. energy shares but this was countered by gains in big tech names that helped lift the Nasdaq to a record closing high. The Dow Jones Industrial Average also hit an intraday all-time high just after the market opened.

"The story is a pretty good one for stocks in terms of it looks like the economy is continuing to grow, I think corporate profits have been pretty good, certainly enough to support higher prices," said Chuck Carlson, chief executive officer at Horizon Investment Services in Hammond, Indiana.

The Dow Jones Industrial Average .DJI rose 37.87 points, or 0.19 percent, to end at 20,090.29, the S&P 500 .SPX gained 0.52 point, or 0.02 percent, to 2,293.08 and the Nasdaq Composite .IXIC added 10.67 points, or 0.19 percent, to 5,674.22.

Fourth-quarter U.S. earnings are estimated to have risen 8.2 percent, the best in nine quarters.   Continued...

Traders work at their desks in front of the German share price index, DAX board, at the stock exchange in Frankfurt, Germany, February 1, 2017. REUTERS/Staff/Remote