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US stocks close higher on tech and oil stocks

Last updated: 16:40 27 Dec 2016 EST, First published: 03:35 27 Dec 2016 EST

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US stocks closed higher on Tuesday as tech stocks rallied and the Nasdaq Composite marked a record high and oil prices hit six-month highs.

But the best of the gains fizzled out by close of session, the first since pre-holidays on Dec. 23.

The Nasdaq closed up 0.5% at 5,487. Earlier it market a record high of 5,512.37.

The Dow Jones Industrial Average which tried daily last week to hit a record peak of 20,000 ended up just 0.06% at 19,945.

The S&P 500 market behemoth was up 0.2% at 2268. It was led by Nvidia Corp (NASDAQ:NVDA) up 6.9% at $117.32 and the third-biggest mover by volumes of 29.9mln.

In a holiday-thinned session, the best of the volumes were from Chesapeake Energy Corp (NYSE:CHK) up 2% at $7.59 on volumes of 44.8mln shares. The oil price rose and helped energy stocks in its wake.

The US oil benchmark WTI was up 1.6% at $53.84. Earlier it peaked at $54.10 – its highest level since early July.

The S&P Midcap 400 closed up 0.4% at 1680 and led by Advanced Micro Devices (NASDAQ:AMD) up 4.1% to $12.05 and was also the top-traded stock in the index, on 44mln shares after Estimize published a “hit list” of five stocks Apple Inc (NASDAQ:AAPL) could be interested in buying in 2017.

As well as AMD, the list included online media streamer Netflix, Inc. (NASDAQ:NFLX) whose shares ended up 2.2% at $128.35, online radio hub Pandora Media Inc (NYSE:P), up 0.5% at $13.25, Tesla Motors Inc (NASDAQ:TSLA) up 2.9% at $219.53 and Activision Blizzard, Inc. (NASDAQ:ATVI) up 0.08% to $36.53.

The S&P Smallcap 600 ended up 0.6% at 849 and led by Lsb Industries Inc (NYSE:LXU) up 10.7% at $9.08.

Canadian markets were closed on Tuesday, as was London.


Early trading

US stocks opened higher on Tuesday, the first session back from the holidays, with the Nasdaq Composite hitting a record high, tech stocks setting the scene, and oil prices higher in thin volumes.

The S&P 500 market bellwether was up a solid 0.4% at 2272 and led by PC graphics card maker Nvidia Corp (NASDAQ:NVDA), up 5.2% to $115.553, and First Solar Inc (NASDAQ:FSLR) up 3.5% to $33.76.

Traders appear to be chasing shares of Nvidia higher again as the stock is moving higher out of the gate by more than 5%. The chip maker grabbed the market’s attention in November when it beat earnings estimates and surged by more than 25% and have now continued for another 25% or so.

Short sellers were to blame for the first surge in price as they scrambled to cover their losing bets. Now, the technical momentum is feeding an increase in volume buying as investors try to catch this runaway train of a trade.

The Dow Jones Industrial Average, which came to within 13 points last week of hitting the record 20,000, was up 0.2% at 19,973 and earlier hit 19,980 – but still off its best so far.

Apple Inc (NASDAQ:AAPL) was leading the Dow higher, as the largest-listed stock was up 1.1% at $117.61.

The tech-heavy Nasdaq Composite was up the most, by 0.7% to 5,501. Earlier, it hit 5,512.37 – a record. Its previous major peak was on March 10, 2000 just before the dot com bubble burst on internet stocks. Back then it scaled 5,048.

The S&P Midcap 400 was up 0.3% at 1678 and led by Deckers Outdoor Corp (NYSE:DECK) up 3.9% at $55.51.

The S&P Smallcap 600 was up 0.5% at 848 and led by Northern Oil and Gas (AMEX:NOG) up 7.3% at $2.95 after tumbling more than 8% on Friday on the American Stock Exchange. Buoyant oil prices helped the stock gain.

The West Texas Intermediate, the US oil benchmark, was up 1.3% at $53.70.<

Meanwhile, in data, the Conference Board's Consumer Confidence series recorded 113.7 for December - well above the 108.5 forecast and fuelled the belief that Donald Trump's election as President had given a huge boost to consumers. The November figure was also revised upward to 109.4 from 107.1.


Pre-Open

US stocks are expected to open flat to firmer on Tuesday, as markets resume trading following the holiday.

The first day back since a full day on Friday, Wall Street will be holiday-thinned on account of market closures elsewhere, such as London.

The S&P 500 market bellwether indicated opening 0.1% higher, same as the tech-heavy Nasdaq Composite, but the Dow Jones Industrial Average which toyed with the record 20,000 level every day last week – coming to within 13 points of hitting the mark mid-week – is unlikely to find momentum as the ticker is indicated opening flat.

But low volumes are expected to dog the market with many investors still away after digesting a stellar rally since the Nov 8 Presidential and Congressional elections which resulted in a surprise win by pro-business Donald Trump as President.

Conference Board releases Consumer Confidence data for December at 1000 ET (1500 GMT) and is forecast to rise to 108.5 from 107.1 in November. Following last week’s bullish University of Michigan consumer sentiment data after Donald Trump’s win in the White House race, the national tally will be closely watched.

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