Oil prices surge as US reserves fall

A bit of dithering on the US shares front today though small gains still meant record highs almost all round: the S&P 500 index ended the day at 2,498 while the Dow Jones Industrial Average climbed +0.2% to 22,158.

The main commodity news was oil, up more than +2% after more evidence from the International Energy Agency that global crude production was stuttering. The US government also revealed a chunky slip in petrol stockpiles. Some of the imbalance was blamed on Hurricane Harvey.

“Outright benchmark crude prices gained in August, reflecting higher demand in the northern hemisphere and tight physical markets for oil products," the Paris-based International Energy Agency confirmed earlier.  

Some disappointment for Apple with its share price slipping more than -1.1% on the back of a less-than-adulatory response to its $1,000 iPhone X. Meanwhile the US producer price index climbed +0.2% in August the government said earlier today with the uptick blamed on higher consumer fuel prices.        

• Dow 22,158 +0.18%
• S&P 500 2,498 +0.08%
• Nasdaq 6,460 +0.09%
• Russell 2000 1,426 +0.24%
• NYSE Composite 12,055 -0.02%
• Gold 1,321.79 -0.47
• Oil WTI $49.34 +2.03%
• 10-Year Treasury 2.19 +0.03%

Earlier Wells Fargo expressed concern on the performance of Limited Brands’ Victoria’s Secret retail chain. Is there a danger the super-successful retailer, whose product mainstay is lingerie, make-up and sleepwear, is losing touch with its core client base – teenage girls?

“We believe that new management in place at Victoria’s Secret recognizes the change in consumer attitude, and is attempting to tweak the Victoria’s Secret image to one that is more in line with current trends,” wrote analyst Ike Boruchow, reported Marketwatch. 

Are Victoria's Secret customers getting pickier? Shutterstock

Mall retailer Target said today it was ready to hire up to 100,000 temporary workers for its bricks and mortar stores (though online is doing well – recently Target said online sales were up +32% up in the second quarter thanks to website improvements). Last year Target hired 77,500 for the temporary holiday season. 

"I think Target sees an opportunity to take market share in an environment where we have so many store closures in the specialty apparel and department store space,” Retail Metrics analyst Ken Perkins told the BBC. The holiday season kicks off officially the day after Thanksgiving. 

The biggest large company share price rises came from Chevron, up +1.50% and Dow DuPont, up +1.43% while Caterpillar Inc shares fell more than -1%.