US stocks sharply higher in afternoon trading; oil rises

ELECTION EFFECT: Clinton got a boost late Sunday, when FBI Director James Comey told lawmakers that a review of new Clinton emails did not change the bureau’s recommendation that she should not face charges. The market wilted on Oct. 28 after the FBI notified Congress that it was reviewing newly discovered emails linked to Clinton, who is seen by Wall Street as likely to maintain the status quo. Donald Trump’s policies are less clear, and the uncertainty and uncomfortable closeness of the polls caused jitters in financial markets ahead of Tuesday’s general election.

THE QUOTE: “This is not a rational market. This is a reaction to less uncertainty,” said Phil Blancato, CEO of Ladenburg Thalmann Asset Management. “In those kinds of markets, people are jumping into stocks that they think are cheap. And what are the cheapest right now? Financials and health care.”

FEELING BETTER: Several health care and pharmaceutical companies were among the biggest gainers. AbbVie added $3.33, or 5.9 per cent, to $59.37, while Regeneron Pharmaceuticals gained $20.46, or 6 per cent, to $361.85. Biogen climbed $19.56, or 7.1 per cent, to $296.56. HCA Holdings rose $4, or 5.3 per cent, to $79.33, while Humana added $8.15, or 4.9 per cent, to $175.57.

MEMORY MAKERS: Shares in digital storage companies Seagate Technology and Western Digital were both climbing. Seagate gained $1.64, or 5 per cent, to $34.64, while Western Digital added $2.77, or 5 per cent, to $57.79.

SPARKLING DEAL: Blue Nile surged 33.9 per cent on news that the online jewelry retailer is being acquired by a group of funds managed by Bank Capital and Bow Street. The stock added $10.31 to $40.74.

STRONG QUARTER: LendingClub vaulted 15.7 per cent after the peer-to-peer lender reported better-than-expected quarterly results. The stock gained 81 cents to $5.94.

FLIGHT FROM SAFETY: The VIX, a measure of how much volatility investors expect to see in the market over the next 30 days, slumped 16.2 per cent Monday after surging 40 per cent last week to its highest level since June, when Britain voted to leave the European Union. The slide in the VIX reflected less anxiety among investors. Safe haven investments also slumped as investors felt comfortable taking on more risk. Bond prices fell, driving the yield on the 10-year Treasury note up to 1.82 per cent from 1.78 per cent late Friday, while the price of gold fell $22.60, or 1.7 per cent, to $1,281.90 an ounce. Utilities and phone stocks, two other havens investors seek when they expect turmoil, lagged the market.

MARKETS OVERSEAS: In Europe, Germany’s DAX was up 1.9 per cent, while France’s CAC 40 was 1.9 per cent higher. Britain’s FTSE was up 1.7 per cent. Earlier in Asia, Japan’s Nikkei 225 finished 1.6 per cent higher, while South Korea’s Kospi gained 0.8 per cent. The Hang Seng index in Hong Kong added 0.7 per cent.

ENERGY: U.S. benchmark crude oil was up 29 cents, or 0.7 per cent, at $44.36 a barrel in New York. The price of oil is coming off a six-day losing streak. Brent crude, which is used to price international oils, was up 11 cents at $45.69 a barrel in London.

CURRENCIES: The dollar strengthened across the board. It was up to 104.50 yen from 103.13 on Friday. The euro slipped to $1.1033 from $1.1117. The dollar was down 1.8 per cent to 18.67 Mexican pesos from 19.03 pesos. The Mexican currency has become an indirect proxy among investors for Trump’s chances to win the White House. Investors have speculated that a Trump administration would be negative for the Mexican economy, and would cause the Mexican peso’s value to fall as a result.

Alex Veiga, The Associated Press

by Canadian Press

US stocks sharply higher in afternoon trading; oil rises

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