US close: Oil price rally lifts stocks higher

US stocks closed in positive territory on Monday, boosted by a rally in oil prices.

The Dow Jones Industrial Average jumped 1.0% to 17,710.71 the S&P 500 rose 0.98% to 2,066.66 and the Nasdaq grew 1.22% to 4,775.46.

Oil prices advanced after Goldman Sachs said the market had finished almost two years of oversupply and moved to a deficit following global production disruptions. Supply disruptions around the world, including in Nigeria, have reached as much as 3.75 million barrels per day, soothing the supply glut that has been blamed for pushing prices down as much as 70% between 2014 and early 2016.

"The oil market has gone from nearing storage saturation to being in deficit much earlier than we expected and we are pulling forward our price forecast, with second quarter/second half of 2016 WTI now $45/bbl and $50/bbl,” Goldman said.

"We believe the industry still has further to adjust and our updated forecast maintains the same 2016-2017 price level we previously believed was required to finally correct both the barrel and capital imbalances, and eventually take prices to $60/bbl."

West Texas Intermediate crude rose 3.6% to $47.94 per barrel and Brent increased 2.5% to $49.08 per barrel.

In economic data, the Federal Reserve Bank of New York’s Empire State manufacturing sector index dropped from a reading of 9.56 to -9.02 in May, missing forecasts of 6.50.

The National Association of Home Builders' housing market index, measuring confidence in the sector, held at 58 in May, above the 50 level that indicates optimism. Analysts had expected a reading of 59.

Elsewhere, Chinese data on retail sales, industrial output and fixed asset investments all came in worse than expected over the weekend.

Looking ahead, investors are awaiting the release of the Federal Reserve’s 26-27 April policy meeting minutes on Wednesday. The minutes may reveal clues on the central bank’s next move on interest rates ahead of June’s policy meeting.

In company news, Apple led technology stocks higher after Warren Buffet’s Berkshire Hathaway took a new $1bn stake in the company in the first quarter.

Amazon shares climbed on reports that it is expected roll out new lines of private-label brands in the coming weeks.

Yahoo rose amid reports that Warren Buffet is backing a consortium that is bidding for core internet assets of the company.

Anacor Pharmaceuticals surged after the maker of an eczema treatment agreed to be bought by Pfizer Inc. in a deal valued at $5.2bn.

In currencies, the dollar fell 0.22% against the pound, dropped 0.10% against the euro but increased 0.30% versus the yen.

S&P 500 - Risers
Williams Companies Inc. (WMB) $20.59 +6.41%
Regeneron Pharmaceuticals Inc. (REGN) $391.95 +6.09%
Freeport-McMoRan Inc (FCX) $11.04 +6.05%
Tyco International Plc (TYC) $40.23 +4.85%
FMC Technologies Inc. (FTI) $28.85 +4.64%
Johnson Controls Inc. (JCI) $42.59 +4.36%
Newmont Mining Corp. (NEM) $35.42 +3.96%
Marathon Oil Corp. (MRO) $12.78 +3.90%
McKesson Corp. (MCK) $172.40 +3.90%
Devon Energy Corp. (DVN) $33.78 +3.87%

S&P 500 - Fallers
Range Resources Corp. (RRC) $37.69 -10.28%
Westrock Company (WRK) $39.64 -6.86%
Chesapeake Energy Corp. (CHK) $3.90 -3.94%
Chipotle Mexican Grill Inc. (CMG) $444.50 -3.02%
Time Warner Cable Inc. (TWC) $210.00 -2.56%
Monsanto Co. (MON) $98.27 -1.67%
Discovery Communications Inc. Class A (DISCA) $27.53 -1.61%
Nordstrom Inc. (JWN) $38.54 -1.58%
Macy's Inc. (M) $30.74 -1.54%
Discovery Communications Inc. Class C (DISCK) $26.64 -1.48%

Dow Jones I.A - Risers
Apple Inc. (AAPL) $93.88 +3.71%
E.I. du Pont de Nemours and Co. (DD) $64.34 +2.27%
Wal-Mart Stores Inc. (WMT) $66.02 +1.66%
Home Depot Inc. (HD) $135.34 +1.66%
Cisco Systems Inc. (CSCO) $26.97 +1.66%
Intel Corp. (INTC) $30.39 +1.60%
United Technologies Corp. (UTX) $101.82 +1.55%
Boeing Co. (BA) $134.15 +1.54%
Chevron Corp. (CVX) $102.28 +1.53%
Microsoft Corp. (MSFT) $51.83 +1.47%

Dow Jones I.A - Fallers
Travelers Company Inc. (TRV) $112.24 -0.38%
Nike Inc. (NKE) $57.12 -0.33%
Walt Disney Co. (DIS) $100.38 -0.14%
American Express Co. (AXP) $64.06 -0.09%

Nasdaq 100 - Risers
Regeneron Pharmaceuticals Inc. (REGN) $391.95 +6.09%
Baidu Inc. (BIDU) $168.26 +5.33%
Biomarin Pharmaceutical Inc. (BMRN) $86.47 +4.55%
Incyte Corp. (INCY) $76.47 +4.45%
Liberty Global plc Series A (LBTYA) $38.16 +3.78%
Liberty Global plc Series C (LBTYK) $37.59 +3.73%
Apple Inc. (AAPL) $93.88 +3.71%
Alexion Pharmaceuticals Inc. (ALXN) $144.57 +3.46%
Mylan Inc. (MYL) $40.45 +3.29%
JD.com, Inc. (JD) $23.37 +3.22%

Nasdaq 100 - Fallers
Charter Communications Inc. (CHTR) $203.60 -5.12%
Discovery Communications Inc. Class A (DISCA) $27.53 -1.61%
Discovery Communications Inc. Class C (DISCK) $26.64 -1.48%
Dish Network Corp. (DISH) $45.28 -1.26%
Lam Research Corp. (LRCX) $73.44 -1.21%
KLA-Tencor Corp. (KLAC) $67.91 -1.01%
Facebook Inc. (FB) $118.66 -0.96%
Starbucks Corp. (SBUX) $55.53 -0.52%
Viacom Inc. Class B (VIAB) $39.33 -0.51%
Mattel Inc. (MAT) $30.94 -0.42%