U.S. stocks surged after the Federal Reserve kept interest rates on hold and toned down its concerns about global financial markets.
The Dow Jones Industrial Average added 198.09 points, or 1.1%, to 17779.52. The S&P 500 rose 24.46, or 1.2%, to 2090.35, while the NASDAQ rose 65.55, or 1.3%, to 5095.69.
On Wednesday, Shares of Chesapeake Energy Corporation (NYSE:CHK), gained 3.72% to $6.97, as Crude futures fell on Thursday after the U.S. Federal Reserve kept rates unchanged and a weekly government report on oil stockpiles showed an inventory build that was within expectations, according to Reuters.
U.S. and global oil benchmarks were not giving up much of the gains made on Wednesday after the government report on inventory build.
U.S. crude futures CLc1 were down 38 cents at $45.56 a barrel at 0638 GMT. They rose more than 6 percent on Wednesday, snapping three days of losses.
Brent crude LCOc1 was down 39 cents at $48.66 a barrel, after rising nearly 5 percent in the previous session. Reuters Reports
Chesapeake Energy Corporation produces oil and natural gas through acquisition, exploration, and development of from underground reservoirs in the United States. It holds interests in natural gas resource plays, counting the Haynesville/Bossier Shales in northwestern Louisiana and East Texas; the Marcellus Shale in the northern Appalachian Basin of West Virginia and Pennsylvania; and the Barnett Shale in the Fort Worth Basin of north-central Texas.
Shares of American International Group, Inc. (NYSE:AIG), inclined 4.88% to $63.89, during its last trading session.
Activist investor Carl Icahn urged American International Group Inc. to split up into smaller companies Wednesday, saying that the insurance provider is “too big to succeed.”
Though his Twitter account, Icahn said that he has a “large stake” in the insurer, which has a market capitalization in excess of $81 billion, but he was not more specific about its size. A representative for Icahn was not available for comment early Wednesday, according to AP.
In a letter sent to AIG and posted on his website, Icahn said that AIG should separate the company’s life and mortgage insurance businesses and create three separate, publicly-traded companies. Icahn said splitting up AIG would boost shareholder value and also make it more competitive.
“We believe there is no more need for procrastination, the time to act is now,” Icahn said.
AIG confirmed that it had received the letter and CEO Peter Hancock said in a printed statement that noteworthy steps have been taken to reposition AIG by simplifying and lowering risk at the company. AP Reports
American International Group, Inc. provides insurance products and services for commercial, institutional, and individual customers in the United States, the Asia Pacific, and internationally. The company’s Commercial Insurance segment offers general liability, commercial automobile liability, workers’ compensation, excess casualty, and crisis administration causality insurance products; commercial, industrial, and energy-related property insurance products; aerospace, environmental, political risk, trade credit, surety, and marine insurance products, in addition to various insurance products for small and medium sized enterprises; and professional liability insurance products for a range of businesses and risks.