Too Close To Call: Dow Jumps 160 Points, Finishes Week Up 0.3% as Opec, Deutsche Bank Roil Markets

A wild week–and month–finished with little damage done to stocks.

The S&P 500 ticked up 0.2% this week after rising 0.8% to 2,168.27 today, while the Dow Jones Industrial Average advanced 0.3% this week after gaining 164.70 points, or 0.9%, to 18,308.15. The Nasdaq Composite rose 0.1% this week after advancing 0.8% to 5,312.00 today.

This week was all about sectors bets. The S&P 500 Energy sector rose 4.6% this week on the back of Opec’s agreement–one that still needs to be enacted–to limit the production of oil. The S&P 500 Financial sector dropped 1.4% as it was whipsawed by fears about Deutsche Bank (DB). Utilities tumbled 3.9% as investors stayed away from yield sensitive sectors on hopes/fears of a December rate hike. And the S&P 500 Health Care sector fell 1.4% because drug pricing is still a target for politicians everywhere.

Speaking of politics, UBS strategist Julian Emanuel argues that uncertainty around the presidential election will lead to more volatility for the stock market:

The Hot Stock: Southwestern Energy Soars as Energy Flies

Energy stocks continued their strong performance following Opec’s potential agreement to limit oil production–and no energy stock in the S&P 500 was stronger today than Southwestern Energy (SWN).

Southwestern jumped 4.8% to $13.84 today, easily topping the S&P 500′s 0.8% rise to 2,168.27, and the Energy Select Sector SPDR ETF’s (XLE) 1.4% gain to $70.61.

Southwestern Energy drills primarily for natural gas, not oil, but Opec’s agreement, if put into action, should lift all boats. Evercore ISI’s James West and team write that the Algier’s framework “is a big step forward.” They explain why:

Encana: Out of the Bad Balance Sheet Bucket?

Citigroup’s Robert Morris and David Zutter explain why they upgraded Encana (ECA) to Buy from Neutral:

Viacom & CBS: Running the Merger Numbers

Guggenheim’s Michael Morris and team run the numbers on a potential Viacom (VIAB)-CBS (CBS) merger:

Rockwell Automation: Come On People! It Wasn’t Even Upgraded to Buy!

Rockwell Automation (ROK) is soaring today thanks to an upgrade from Bernstein’s Steven Winoker and team, who raised the industrial stock to Market Perform from Underperform. They offer four reasons for their less bearish outlook on Rockwell:

Suddenly, Everyone Loves Wal-Mart Except…

Wal-Mart Stores (WMT) is getting a lot of love today. Pacific Crest’s Edward Yruma and team started Wal-Mart at Overweight today, noting that the company is “getting back to retail 101.” They explain:

Walt Disney: First Twitter, Now Netflix?

When it comes to Walt Disney (DIS), the speculation machine never seems to stop. In recent days, it’s been the subject of talk that it may be interested in buying struggling social-media company Twitter (TWTR). Today, however, rumors of a potential Netflix (NFLX) acquisition appear to be making the rounds, according to the Fly on the Wall.

These rumors aren’t new. Back in April…

Costco: ‘One of the Few Large Cap Growth Companies Left in Retail’

Shares of Costco Wholesale (COST) have jumped today after the big-box retailer reported far better-than-expected earnings after yesterday’s close. Credit Suisse analysts Michael Exstein and Christine Lee note that Costco is one of the only retailers left standing in the growth universe. They explain:

What a Difference a Day Makes: Dow Jumps 170 Points as Deutsche Bank Rebounds

Yesterday, the market’s sizable drop was blamed on Deutsche Bank (DB) I guess we can credit the German banking giant for today’s big gain then.

The S&P 500 has risen 0.8% to 2,168.36 at 12:01 p.m. today, while the Dow Jones Industrial Average has gained 168.68 points, or 0.9%, to 18,312.13. The Nasdaq Composite has advanced 0.8% to 5,309.89.

The Lindsey Group’s Peter Boockvar points to reports that Deutsche Bank might have reached a much smaller settlement than what the Department of Justice had been aiming for, and explains why that’s good news:

Here’s How United Continental Could Double

After meeting with United Continental’s (UAL) management, UBS analysts Darryl Genovesi and David Strauss contend that the carrier might finally increase its profit margins. They explain why: