US Stocks

U.S. stocks snapped a three session losing skid, as investors rode a boost in commodities prices to snap up shares of energy, materials and industrial companies. The Dow Jones Industrial Average gained 38.45 points, or 0.31%, to finish at 12394.66. The Standard & Poor's 500-stock index gained 4.19 points, or 0.32%, to 1320.47, while the Nasdaq Composite added 15.22 points, or 0.55%, to 2761.38.

[Sign up to get this report daily]

Leading the way were stocks aligned to global growth. Caterpillar, DuPont and Alcoa gained 1.7%, 1.8% and 1.4%, respectively, as gold, copper and oil all rose. Even so, the energy, materials and industrial sectors remain among the worst-performing sectors this month, off by about 5% or more apiece. Stocks spent much of the morning in negative territory after a weak economic reading and dispiriting results from some closely watched companies, but turned positive after credit-ratings agency Fitch Ratings said it doesn't foresee any rating action on German banks as a direct result of their exposure to Greece's sovereign debt.

Trading volume remained light, with only 3.5 billion shares changing hands in New York Stock Exchange composite volume. Leading the decliners were the more-defensive sectors, with consumer staples, utilities and telecom stocks in the red. Procter & Gamble was off 0.9%, while Verizon Communications fell 1.4%.

In corporate news, Polo Ralph Lauren tumbled 11%, making it the worst-performing component on the S&P 500, after the high-end retailer's fourth-quarter profit dropped 36% on higher costs and lower sales in Japan.

European Stocks

European stocks closed slightly higher Wednesday, clambering out of the red after credit-ratings firm Fitch Ratings said it doesn't foresee any rating action on German banks as a result of their exposure to Greece. Banking shares jumped, and the Stoxx Europe 600 index ended up 0.7% at 277.37. Commerzbank, which Fitch said has the biggest euro exposure to Greece among commercial banks, surged 6.1%. Among major national European indexes, the U.K.'s FTSE 100 nudged up 0.2% to 5870.14, Germany's DAX increased 0.3% to 7170.94 and France's CAC-40 added 0.3% to 3928.99. The Fitch report helped boost other banks. Natixis rose 2.4%, BNP Paribas gained 2.2% and Credit Agricole added 2.3%, all in Paris.

In Italy, Banca Popolare di Milano climbed 3.9%, while Barclays rose 2.3% in London. Burberry Group fell 1.6% ahead of full-year results due Thursday. Italy's Fiat rallied 3.3%. Chief Executive Sergio Marchionne said the car company will consolidate Chrysler Group next week as it readies to lift its stake in the U.S. automaker by 51% ahead of an eventual initial public offering. Deutsche Lufthansa rose 1.1% after airports in northern Germany began to reopen. They had been forced to close earlier due to an ash cloud from a volcanic eruption in Iceland. In London, shares of International Consolidated Airlines, which also had been hit by cancellations on Tuesday, rose 1.5%.

Asian Markets

Most Asian markets ended lower Wednesday, with Chinese shares dragged down on worries about the nation's slowing economic growth and rising inflationary pressure. The Shanghai Composite dropped 0.9% to 2741.74 for its fifth straight day of losses. Japan's Nikkei Stock Average fell 0.6% to 9422.88 and South Korea's Kospi fell 1.3% to 2035.87.

Hong Kong's Hang Seng index bucked the trend, just, ending 0.1% higher at 22747.28. China State Construction Engineering slid 1.9% and China Construction Bank fell 1.2% in Shanghai, while ZTE fell 3% in Shenzhen. Japanese heavy-machinery makers, which export to China, were also pressured by the weakness in the Shanghai market. Komatsu was off 1.6% and Hitachi Construction Machinery dropped 2.2%.

Worries over Chinese demand for commodities resulted in a weak debut in Hong Kong for Swiss commodities trading giant Glencore International. The stock finished 2.5% below its initial public offering of 66.53 Hong Kong dollars (US$8.55). Gains for some Japanese car makers restricted losses in Tokyo, after the Nikkei reported that Toyota Motor planned to bring back domestic auto production next month to as much as 90% of targets set before the March 11 earthquake. Toyota rose 2.2%, helping drive Nissan Motor 1.3% higher. Denso Corp., a major Toyota supplier, gained 0.2%. South Korean car makers outperformed the broader market in Seoul, though not enough to show gains: Hyundai Motor ending unchanged and its affiliate Kia Motors slipping 0.3%.

Base Metals

Base metals closed higher on the London Metal Exchange Wednesday, spurred by a 2.3% rise in the price of copper, which ended the open outcry session back above $9,000 a metric ton. The red metal, which finished the PM kerb at $9,065 a metric ton, managed to reverse its losses from earlier in the week and is now trading at a similar level to early Monday, before poor Chinese data and a drop in equities sent the market sharply lower.

Some traders say copper is now in consolidation mode reconnecting with the physical market after a period of high volatility, in which industry participants have been torn between a range of conflicting macro factors. However, despite a stronger tone in the markets over the past two sessions, investors remain nervous as they await clearer macro economic news to drive direction, they added.

Crude oil futures settled above $101 a barrel for the first time in two weeks Wednesday, spurred by U.S. oil inventory data showing stronger demand from refiners. Data from the Energy Information Administration showed crude processing at the nation's refineries jumped nearly 500,000 barrels a day in the week ended May 20. At 14.8 million barrels a day, crude runs were the highest this year. Crude imports rose 662,000 barrels a day, also a sign that refiners are lifting operations, providing underlying support for crude, at least for the near term.

Light, sweet crude oil for July delivery on the New York Mercantile Exchange settled $1.73 higher, at $101.32 a barrel, the highest level since May 10. On the ICE, July Brent crude settled $2.40 higher, at $114.93 a barrel. Gold futures rose for a fourth consecutive session on demand for safe-haven assets, while silver climbed more than 4% as the metal continued to rebound after its recent lows. The most actively traded gold contract, for June delivery, ended $3.40, or 0.2%, higher, at $1,526.70 a troy ounce on the Comex division of the New York Mercantile Exchange.

Thinly traded May gold futures settled $3.40, or 0.2% higher, at $1,526.60 an ounce. Silver for July delivery, the most actively traded contract, ended $1.514, or 4.2%, higher, at $37.642 a troy ounce. May-delivery silver ended up $1.519, or 4.2%, at $37.640 a troy ounce.

More from IBT Markets:
Subscribe to get this delivered to your inbox daily
Follow us on Facebook.
Follow us on Twitter.