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Insurance industry

Late-Day Rally Boosts US Stocks Amid Oil Price Decline

Strategic Insights

— 2 min read

A late-day rally sparked by a decline in oil prices sent US share prices higher on Friday, erasing earlier losses tied to Pfizer's disappointing forecast and a wider-than-expected trade deficit. The rally was led by insurance companies, with Aon, a major insurance broker, reporting a significant increase in profit. The Standard & Poor's 500 index added 3.21 points to close at 1,266.99, while the Dow Jones industrial average rose 35.70 to close at 10,919.05.

Key Takeaways:

  • The US stock market experienced a late-day rally, with the Standard & Poor's 500 index adding 3.21 points to close at 1,266.99.
  • The Dow Jones industrial average rose 35.70 to close at 10,919.05, while the Nasdaq composite added 6.01 points to close at 2,261.88.
  • Aon, a major insurance broker, reported a significant increase in profit, with its stock rallying $3.23 to close at $38.11.
  • Crude oil prices declined to $61.84 a barrel, with the Paris-based International Energy Agency releasing a report stating that global oil producers would boost their capacity to pump oil this year, outpacing growth in demand.
  • The report predicted a 2.2 million-barrel-a-day increase in oil production capacity, led by high prices that had bolstered investment.
  • Pfizer, the world's largest drug maker, lost 66 cents to close at $25.68, despite its revenue and earnings projections being relatively stable.
  • The company's revenue this year was expected to be comparable to last year's $51.3 billion, with per-share 2006 earnings expected to be about $2, excluding certain items.
  • The European markets closed poorer, with the Dow Jones EuroStoxx 50 falling 19.31 points to close at 3,434.26.

Statistics:

  • Oil prices have slipped 13 percent since hitting a record $70.85 in August.
  • Crude oil for March delivery decreased 78 cents to $61.84 a barrel in New York.
  • The Dow Jones industrial average rose 35.70 to close at 10,919.05.
  • The Nasdaq composite added 6.01 points to close at 2,261.88.
  • Aon's stock price rallied $3.23 to close at $38.11.
  • Pfizer lost 66 cents to close at $25.68.
  • Global oil producers are expected to boost their capacity to pump oil by 2.2 million barrels per day.

Sources:

  • "Aon Profit Almost Triples" by Bloomberg
  • "Oil Prices Slip to Six-Week Low" by Bloomberg
  • "Pfizer Sees Revenue, Earnings Comparable to Last Year" by Bloomberg
  • "IEA Report: Global Oil Production to Increase" by International Energy Agency
  • "US Stock Market Rallies Late Day" by Bloomberg

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