Stocks open higher, oil prices rise for 3 straight days

Stocks (^DJI, ^IXIC, ^GSPC) open Friday's session higher, the S&P 500 eyeing to return above its benchmark high of 5,600. Treasury yields (^TYX, ^TNX, ^FVX) are reacting to this morning's Producer Price Index (PPI) inflation data.

Seana Smith and Brad Smith recap index movements after the opening bell while Jared Blikre monitors the energy sector (XLE) and crude oil (CL=F, BZ=F) upward price momentums.

For more expert insight and the latest market action, click here to watch this full episode of Morning Brief.

This post was written by Luke Carberry Mogan.

Video transcript

All right, let's take a check of the major averages here in the US as you're taking a look at the Dow, the S and P 500 the NASDAQ on your screen.

Let's just run through them.

We're higher across the board.

There you go.

It's done.

No, just kidding.

Dow is up by about 2/10 of a percent, 1/10 of a percent gains for the S and P 500 the NASDAQ here, and we're also taking a look.

If we can flip over real quick to the bond market, maybe we're also seeing some reaction.

Play out.

Still, with the climb in yields a bit of a reversal from what we saw earlier this week, this on the back of that PP I data coming in slightly hotter than expected, not a huge move to the upside.

You've got the 10 year yield now, right around just above that 42 level.

All right, let's kick it over to Jared B. Licky have us a closer look at some of this movement that we're seeing as we wrap up the trading week.

Jared.

Yes, I have been watching the energy market that is the second best performing sector of the day.

XL E up about 6/10 of a percent there.

But I want to check in on crude oil.

First C equals up.

That's up 1.17% today.

And let me just show you what's been happening this year, and you can see we have come off these June lows here into potential resistance and the news of the day.

We did have a bigger drop in inventories than we were expecting yesterday that was reported by the Department of Energy.

The IE A Excuse me, the EI A.

But nevertheless, we're seeing prices a little bit higher this morning.

In fact, crude has been on a three day run, and if you think about some of the factors that have been influencing it, you got to take a look at OPEC.

Plus, we're not expecting any news from them for a couple of weeks.

We usually get that around their meeting around the change, the very beginning of each month and then just thinking about earnings, it is earning season.

Now let's take a brief look at the energy sector, our energy heat map, and I'm going to put year to date prices.

You can see a lot of green today, but here we go.

Uh, Exxon is up 14%.

Chevron up 4.5 4.5% You know, kind of in line with the overall market.

We have energy up about 7 8% on the year.

Next week we do get earnings from Schlumberger on Friday as well as Halliburton.

That's going to kick off earnings for the oil patch, and then a week later, we're going to Exxon and some of the other majors.

One thing that doesn't stand out, you know, the US oil majors are different from their international counterparts.

US investors.

Investors expect them to return more cash flow.

You'll notice in the upper right there that ConocoPhillips, BP, Schlumberger those are down and all I can say is sometimes the oil services.

They act counter to what we're seeing in some of the majors.