The major market indexes rallied Tuesday along with oil prices, which spiked on a report that Russia and Saudi Arabia reached an agreement to freeze production.
The S&P 500 led with a 1% gain, while the Dow Jones industrial average and Nasdaq composite added 0.9% and 0.8%, respectively. Volume was sharply higher across the board vs. Monday, according to preliminary figures. Winners trumped losers by nearly 4-to-1 on the NYSE and about 2-to-1 on the Nasdaq.
In economic news, optimism among small-business owners dipped to a two-year low of 92.6 in March, according to the National Federation of Independent Business. The International Monetary Fund revised downward its world economy growth forecast to 3.2% this year vs. the 3.4% it saw in January, citing continued slow growth.
Energy stocks led the upside in the stock market today, as West Texas intermediate oil prices surged 4%. Chevron (CHK) climbed more than 2% and is near its March high.
Metal ores miners and travel bookers also outperformed.
Among the latter, Priceline (PCLN) reversed higher and rose 3% after finding support at its 200-day moving average. The stock is working on a handle to a cup base with a 1,361.73 buy point. Analysts expect the online travel site to post 19% EPS growth on a 15% revenue increase when Priceline reports quarterly results May 4 before the open. In other news, Cowen said in a research report that house rental service Airbnb may not be as big a threat to online travel agents as some think.
Expedia (EXPE) and Ctrip.com (CTRP) also advanced nearly 3% each.
On the IBD 50, INC Research (INCR) gained 4% in heavy volume to finish as the top performer. Shares of the clinical research provider are nearing a 50.50 buy point of a cup base.
New Oriental Education (EDU), down 5% in above-average turnover, was the biggest laggard. The stock fell back into buy range from a 33.01 cup-with-handle buy point, after rising as much as 11% after a recent breakout.
Starbucks (SBUX) pared its loss to 2% after falling as much as 4% intraday. Volume was about twice its average. The stock found support at its 50-day and 200-day lines as it continues working on a shallow base. Deutsche Bank lowered its rating on the coffeehouse chain to hold from buy and cut the price target to 64 from 70.
Economic data due Wednesday include retail sales and the producer price index for March, business inventories for February and weekly mortgage applications.
