US: Stocks turn mixed after positive opening

[New York] US stocks were mixed early Friday as oil prices posted gains after a week of turbulent trading.

About 20 minutes after the opening bell, the Dow Jones Industrial Average had retreated from an early surge and was up 0.1 per cent to 23,547.61.

The broad-based S&P 500 was nearly flat at 2,798.79, while the tech-rich Nasdaq slipped 0.2 per cent to 8,476.30.

Investors were cheered by the climbing price of US crude benchmark West Texas Intermediate, which was up 7.3 per cent to US$17.72 a barrel, a solid recovery after the week began with a dramatic trading session that saw oil close at minus US$37.63 a barrel Monday ahead of the expiration of the May futures contract.

Oil prices have gained since then, particularly after tensions flared between the US and Iran following US President Donald Trump's announcement that the Navy would destroy Iranian boats that harass American ships in the Gulf.

However, analysts warn the gains cannot continue as the crude supply glut behind the price crash has not been resolved and storage facilities are filled to bursting.

Meanwhile, new data showed further impacts of the coronavirus pandemic on the US economy with new orders for durable manufactured goods collapsing in March, posting a decline of 14.4 per cent.

Much of the disruptions were due to the industry shutdowns to contain the virus. The biggest hit was in transportation which saw a 41 per cent decline, according to the Commerce Department report.

Boeing, struggling with both the pandemic's hit to air travel and cancelations of orders for its troubled 737 MAX, is the main player in the US transportation sector and saw its share price fall 3.6 per cent in morning trading.

AFP