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Stock Market News for April 19, 2016

Benchmarks ended in the green on Monday following gains in energy and consumer discretionary stocks. Although oil prices declined for the day, a late recovery prices helped energy stocks to notch up gains. Meanwhile, consumer discretionary stocks rallied following gains in Walt Disney and Hasbro. The Dow moved above the 18,000 level for the first time since July 21. Both the S&P 500 and the Nasdaq closed at their highest level since Dec 1 and Dec 31, respectively.

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The Dow Jones Industrial Average (DJI) increased 0.6%, or 106.70 points, to close at 18,004.16. The S&P 500 rose 0.7% to close at 2,094.34. The tech-laden Nasdaq Composite Index closed at 4,960.02, gaining 0.4%. The fear-gauge CBOE Volatility Index (VIX) decreased 2% to settle at 13.35. A total of around 6.1 billion shares were traded on Monday, lower than the last 20-session average of 6.9 billion shares. Advancers outpaced declining stocks on the NYSE. For 70% stocks that advanced, 26% declined.
Failure on the part of the major oil producing nations to come to an agreement in the Doha meeting on Sunday over freezing crude production resulted in a decline in oil prices. One of the key OPEC members, Saudi Arabia was not ready to freeze crude output without Iran’s participation. On the hand, Iran has clearly stated that they will raise production until they reach the level of 4 million barrels per day. Both the WTI crude and Brent crude fell 1.5% and 0.4% to $39.78 per barrel and $42.91 a barrel, respectively.
However, some of the losses in oil prices were curbed following a strike by oil workers in Kuwait. Following the strike, Kuwait’s oil production fell from almost 3 million barrels per day (bpd) to 1.1 million bpd on Sunday.
Meanwhile, the Energy Information Administration (EIA) reported a fall in U.S. crude output by 90,000 bpd to 9 million bpd in March. The EIA also reduced its production forecast from last month’s outlook by 100,000 bpd to 8.6 million bpd and 8.0 million bpd in 2016 and 2017, respectively.
Late recovery in oil prices helped boost energy stocks. The Energy Select Sector SPDR (XLE) increased 1.7% and was the biggest gainer among the S&P 500 sectors. Dow components Chevron Corp (CVX) and Exxon Mobil Corp (XOM) rose 1.5% and 1%, respectively. Other key energy stocks including, Hess Corporation (HES), Schlumberger Limited (SLB), Valero Energy Corporation (VLO), Pioneer Natural Resources Co. (PXD), EOG Resources (EOG) and ConocoPhillips (COP) advanced 4.7%, 1.6%, 2.1%, 2.2%, 2.3% and 3%, respectively.
Further, shares of Walt Disney Company (DIS) rose 2.9% after the "The Jungle Book" garnered weekend box office collections of $103.6 million in North America. This was the second biggest April opening sales figure ever. Walt Disney was the best performer among the Dow components.
Moreover, shares of Hasbro Inc (HAS) jumped 5.8% after reporting earnings of 38 cents per share, beating the Zacks Consensus Estimate of 24 cents and surged 81% year over year. The company’s net revenue of $831.2 million also soared 16% year-on-year and beat the Zacks Consensus Estimate of $768 million by 8.2%.
Gains in Walt Disney and Hasbro had a positive impact on consumer discretionary stocks. The Consumer Discretionary Select Sector SPDR (XLY) increased more than 0.9% and was the second highest gainer among the S&P 500 sectors. Key components including, Inc. (AMZN), Priceline Group Inc. (PCLN), Home Depot, Inc. (HD), Ford Motor Co. (F) and Comcast Corporation (CMCSA) rose 1.5%, 1.6%, 1.3%, 2.4% and 0.8%, respectively.
In economic news, the National Association of Home Builders (NAHB) reported that home builder sentiment index (HMI) remained flat at 58 in April for the third consecutive month.

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DISNEY WALT (DIS): Free Stock Analysis Report
HASBRO INC (HAS): Free Stock Analysis Report
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