NEW YORK, Dec 16 - Mid- and small-capitalization stocks rose on Wednesday, bolstered by gains in the energy sector following a jump in crude oil prices.
The energy sector led increases in both the mid- and small-cap markets.
Shares of Helix Energy Solutions Group (HLX.N), a mid-cap company, rose 3.4 percent to $11.83, on the New York Stock Exchange while shares of Superior Energy Services (SPN.N), also a mid-cap company, gained 1.6 percent to $23.75, as energy prices rose 3.4 percent to $73.07 a barrel on the New York Mercantile Exchange.
Underpinning energy prices was a U.S. Energy Information Administration weekly oil inventory report showing larger-than-expected drops in crude and distillate stockpiles in the week to Dec. 11. [EIA/S]
The S&P MidCap 400 index .MID rose 0.5 percent, while the S&P SmallCap 600 index .SML added 0.8 percent. In comparison, the S&P 500 .SPX ended 0.1 percent higher.
Both the mid-cap energy index .4GSPE and small-cap energy index .6GSPE had their sixth straight day of gains, with Exxon Mobil Corp's (XOM.N) plan to buy XTO Energy Inc (XTO.N), announced Monday, boosting the sector this week.
XTO shares were down 1.4 percent on Wednesday at $47.
"You've seen with Exxon buying buying XTO, there's the prospect for M&A activity to pick up a little bit. Some of things we're seeing there might favor valuation in small and mid-cap stocks," said Eric Marshall, director of research at Hodges Capital Management in Dallas.
But overall, he said, "people are starting to see attractive risk reward again in some of the small-cap areas."
The mid-cap S&P 400 index is up 33.7 percent since the start of the year, while the S&P 600 small-cap index is up 20.6 percent since Dec. 31, 2008.
The energy sector led increases in both the mid- and small-cap markets.
Shares of Helix Energy Solutions Group (HLX.N), a mid-cap company, rose 3.4 percent to $11.83, on the New York Stock Exchange while shares of Superior Energy Services (SPN.N), also a mid-cap company, gained 1.6 percent to $23.75, as energy prices rose 3.4 percent to $73.07 a barrel on the New York Mercantile Exchange.
Underpinning energy prices was a U.S. Energy Information Administration weekly oil inventory report showing larger-than-expected drops in crude and distillate stockpiles in the week to Dec. 11. [EIA/S]
The S&P MidCap 400 index .MID rose 0.5 percent, while the S&P SmallCap 600 index .SML added 0.8 percent. In comparison, the S&P 500 .SPX ended 0.1 percent higher.
Both the mid-cap energy index .4GSPE and small-cap energy index .6GSPE had their sixth straight day of gains, with Exxon Mobil Corp's (XOM.N) plan to buy XTO Energy Inc (XTO.N), announced Monday, boosting the sector this week.
XTO shares were down 1.4 percent on Wednesday at $47.
"You've seen with Exxon buying buying XTO, there's the prospect for M&A activity to pick up a little bit. Some of things we're seeing there might favor valuation in small and mid-cap stocks," said Eric Marshall, director of research at Hodges Capital Management in Dallas.
But overall, he said, "people are starting to see attractive risk reward again in some of the small-cap areas."
The mid-cap S&P 400 index is up 33.7 percent since the start of the year, while the S&P 600 small-cap index is up 20.6 percent since Dec. 31, 2008.
