NEW YORK (AP) – U.S. stocks edged higher in early trading Tuesday as the market stabilized a day after a big drop. Energy stocks were among the biggest gainers as the price of oil rose.
KEEPING SCORE: The Standard & Poor’s 500 index was up six points, or 0.3 percent, to 1,877 as of 10:13 a.m. Eastern time. The index slumped 50 points the day before. The Dow Jones industrial average edged up 26 points to 16,014. The Nasdaq composite rose 10 points, or 0.2 percent, to 4,554.
SOUR COCKTAIL: Worries over China have resurfaced in recent days, pushing commodity prices lower and hitting the stocks of mining companies. The fallout from Volkswagen’s emissions-rigging scandal is also a worry as investors fear a regulatory clampdown on the industry. At the same time, Federal Reserve officials are signaling that they will raise U.S. interest rates this year, marking the beginning of the end of ultra-low interest rates that have underpinned stock markets for the past six years.
PHARMA FIZZLE: Drugmakers have also been a weak spot for the market on concern that lawmakers will introduce new regulations to control prices in the industry.
GLENCORE BOUNCE: European commodities company Glencore jumped 16 percent in London, bouncing back from a sharp drop the day before. On Tuesday, analysts at Citibank said the recent fall in Glencore’s share price, about 80 percent from its high in May, has been “overdone.” They suggested the company could raise more money from the sale of investments than the $2 billion it has estimated. Citibank analysts also said Glencore management could consider taking the company back into private hands.