Oil spikes, stocks mixed at the open as Iran cease fire is under strain

Early trading on Wall Street is mixed and oil prices moved higher after the U.S. and Iran traded attacks, testing a ceasefire even further.

Following a two-week retreat, oil prices have resumed their climb, jumping 10 per cent already this week. On Wednesday, U.S. benchmark crude oil advanced US$2.16 to $95.22 per barrel.

Brent crude oil, the international standard, climbed $2.22 to $98.22 per barrel Wednesday.

The broader market’s rally in recent months has been largely due to strong profit reports from U.S. companies and to hopes that the U.S. and Iran will reach a deal to reopen the Strait of Hormuz.

That would allow oil to flow freely again from the Persian Gulf and hopefully lower its price, which has added costs for consumers and businesses.

At the opening bell, the S&P 500 fell 0.1, while the Dow Jones Industrial Average edged 0.3 per cent lower and the Nasdaq was little changed.

Macy’s jumped three per cent after the iconic New York department store easily surpassed first-quarter profit forecasts and raised its outlook. It was the fourth consecutive quarter of comparable sales gains for Macy’s, which said an overhaul of its merchandise and better customer service is resonating with customers.

GameStop, the video game retailer and “meme” stock darling, jumped 13.6 per cent after it nearly doubled Wall Street’s profit expectations and announced a $2 billion stock buyback.

On Bay Street, the Toronto Stock Exchange started the Wednesday session in the red by 0.4 per cent.