Stocks jumped today on word that the oil-producing nations in OPEC might cut production if other countries follow suit.
The possibility of little less supply sounded good to traders and oil rallied, closing up 3 percent to $31.26 a barrel. The S&P 500 ended the day higher by 26 points to 1,903, the Dow Jones Industrial Average closed up 282 points at 16,167 and the Nasdaq rose 46 points at 4,567.
Coach Inc. got the day off to a good start as the leather goods giant delivered earnings that beat analyst estimates. The stock jumped more than 9 percent to trade at $33.33. Wall Street analysts were pleased to see that the company’s turnaround was proceeding as planned. Coach reported earnings of 68 cents a share, 2 cents better than the 66 cents analysts expected. Net sales for Coach Inc. totaled $1.27 billion for the quarter, higher than the $1.22 billion logged a year earlier and an increase of 4 percent. Coach is maintaining its outlook for fiscal 2016, but raising its consolidated operating income outlook.
Avon Products Inc.’s stock rose more than 6 percent to trade at $2.78 as Fitch ratings wrote up its comments from the company’s investor day last week. Fitch said many aspects of Avon’s plans were positive, but still noted that significant execution risks remain. Fitch’s outlook for Avon remains negative.
Wal-Mart Stores Inc. recommended that shareholders reject a mini-tender offer from TRC Capital Corp. TRC offered to buy up to two million shares at $59.88 a share. Wal-Mart stock closed up 55 cents to $64. The stock hit its 52-week low of $56.30 in November. TRC has a history of mini-tender offers and Wal-Mart said it had no connection to the firm.
In Europe, France’s CAC closed up 1 percent to 4,356, the German DAX ended the day up 0.9 percent to 9,822 and the U.K. FTSE closed up 0.6 percent to 5,911.
Looking ahead to Wednesday, Paypal will report its earnings and analysts are hoping to see some upside from its partnership with Macy’s. Ebay is expected to deliver fourth-quarter profits that will beat analyst’s estimates and Facebook is also seen delivering above-consensus earnings. Investors will have their eyes on Facebook’s advertising revenue.