Oil prices climbed about 7 percent this week as the dollar got weaker. The price of oil has seesawed as investors hope energy producing companies will cut production. Experts aren`t sure the gains will last.
"If this fizzles out in a week or so, I think you could see oil prices roll over," said Steve Chiavarone, associated portfolio manager for Federated Investors.
The Dow picked up 35 points, or 0.2 percent, to 17,576.96. The Standard & Poor`s 500 index rose 5.69 points, or 0.3 percent, to 2,047.60. The Nasdaq Composite index eked out a gain of 2.32 points, or less than 0.1 percent, to 4,850.69.
Benchmark U.S. crude rose $2.46, or 6.6 percent, to $39.72 a barrel in New York. Brent crude, used to price international oils, gained $2.51, or 6.4 percent, to $41.94 a barrel in London.
ConocoPhillips picked up 92 cents, or 2.3 percent, to $41.23 and Murphy Oil advanced $1.25, or 5.1 percent, to $25.69.
Oil prices recovered this week, and Chiavarone said that`s partly because the Federal Reserve is stressing that it will raise interest rates slowly. That makes the dollar weaker, and investors think that means demand for oil will go up. Gap said all three of its major chains saw their sales drop in March and added that levels of product inventory are high, which could lead to bigger discounts that will hurt its profits. Meanwhile L Brands said it will restructure its Victoria`s Secret brand and eliminate about 200 corporate jobs.
Gap plunged $3.83, or 13.8 percent, to $23.85 and L Brands stock lost $3.65, or 4.3 percent, to $80.50. The companies` statements and their losses hurt companies that sell everything from athletic apparel to handbags to watches to department store chains. Macy`s gave up 94 cents, or 2.3 percent, to $39.68. Under Armour lost 87 cents, or 2 percent, to $43.54.
Analyst Simeon Siegel of Nomura Securities said Gap and L Brands both reported decent sales, and their problems don`t suggest big trouble for retailers in general.
"Everything gets lumped in together," he said. He added that retail stocks have made big gains recently: "For the past few weeks we`ve had this incredible rally that really wasn`t predicated on any results."
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