NEW YORK (AP) — U.S. stocks are rising on a pickup in factory output and a recovery in the price of oil. The market was on track for its third gain in a row. Companies including Priceline and Garmin are climbing after posting strong quarterly results.
KEEPING SCORE: The Dow Jones industrial average rose 187 points, or 1.2 percent, to 16,383 as of 10:22 a.m. Eastern time. The Standard & Poor’s 500 index gained 23 points, or 1.2 percent, to 1,918. The Nasdaq composite added 68 points, or 1.5 percent, to 4,502.
OIL REBOUNDS: The price of oil recovered as investors again hoped for an international deal that will cap or cut production. Several OPEC nations are in talks about a freeze, but Iran said Wednesday it won’t stop increasing its exports.
Crude prices fell Tuesday after Russia and Saudi Arabia agreed to keep oil production at January’s levels, but the deal will only take effect if other OPEC nations agree to it. Iran wants to raise output following the lifting of sanctions.
U.S. crude rose 79 cents, or 2.7 percent, to $29.83 a barrel in New York and Brent crude, a benchmark for international oils, gained $1.05, or 3.3 percent, to $33.23 a barrel in London.
POWERING UP: U.S. factories cranked out more cars, furniture and food in January. The Federal Reserve said factory output rose 0.5 percent in January, its biggest increase since July. Output had fallen in four of the previous five months.
The data suggests U.S. manufacturing may be recovering after struggling last year. While the strong dollar and weak overseas growth have cut into exports and corporate profits, Americans are also spending at a solid pace.
PRICELINE IS RIGHT: Online travel company Priceline climbed after its profit and revenue surpassed estimates. The stock gained $130.92, or 11.8 percent, to $1,241.60. Recent results from Expedia and TripAdvisor also boosted those stocks. Expedia rose about 5 percent and TripAdvisor climbed 3.5 percent.
SET YOUR WATCHES: Watch and accessories maker Fossil Group posted profit and revenue that were far better than expected, and its annual profit guidance also pleased investors. The stock added $10.57, or 30.7 percent, to $45.12.
Fossil was one of the worst-performing stocks on the S&P 500 last year. It lost almost two-thirds of its value as fitness trackers became more popular and the Apple Watch was launched.
DEVON DIVES: Oil and natural gas company Devon Energy tumbled after saying it will eliminate 20 percent of its staff in the first quarter and slash its spending and its quarterly dividend in response to the diminished price of oil.
The stock lost $2.24, or 10.5 percent, to $19.02. It’s down more than 70 percent over the last year.
THE RIGHT DIRECTION: Personal navigation device maker Garmin rose $4.72, or 13.4 percent, to $39.95 after its fourth-quarter profit topped Wall Street estimates.
BUFFETT BOOST: Kinder Morgan rose after Warren Buffett’s Berkshire Hathaway disclosed a 1.2-percent stake in the pipeline company. The stock advanced $1.77, or 11.3 percent, to $17.39.
EUROPE: Germany’s DAX rose 2.5 percent and Britain’s FTSE 100 was up 2.4 percent. The France’s CAC 40 gained 2.7 percent.
ASIA’S DAY: Japan’s Nikkei 225 fell 1.4 percent as investors shrugged off data showing strong machinery orders in January. Hong Kong’s Hang Seng dropped 1 percent while the Shanghai Composite rose 1.1 percent.
CURRENCIES: The yield on the 10-year Treasury note jumped to 1.84 percent from 1.78 percent. The dollar rose to 114.40 yen from 113.88 yen. The euro slipped to $1.132 from $1.144.