US close: Stocks eke out some small gains as oil rallies

Stocks on Wall Street eked out some small gains on Monday as strength in the energy sector helped to offset losses in the financials space ahead of key bank earnings later in the week, with geopolitical tensions never far from investors’ minds.

The Dow Jones Industrial ended flat at 20,658.02, the S&P 500 nudged up 0.1% to 2,357.16 and the Nasdaq added 0.1% to close at 5,880.93.

Energy shares got a boost as oil prices rallied following another shutdown at Libya's Sharara oilfield and amid growing concerns over Syria after the US missile strike last week. West Texas Intermediate was up 1.5% to $53.06 a barrel and Brent crude was 1.3% firmer at $55.95.

However, financials were under pressure as market participants eyed the start of earnings season, with results due from banking heavyweights JPMorgan, Citigroup and Wells Fargo on Thursday.

At the same time, geopolitical tensions remained high after Russia and Iran said the US had crossed a "red line" with its missile strikes, which were in response to a deadly chemical attack.

IG analyst Chris Beauchamp said: “Tensions between Russia and the US remain elevated, with some reports suggesting that US Secretary of State Tillerson will not meet with Vladimir Putin when he arrives in Moscow. The Syrian situation has taken the spotlight off OPEC and US shale producers, but this question could reassert its dominance very quickly if diplomacy prevails between the two great powers.”

Elsewhere, investors were looking ahead to comments by Fed Chair Janet Yellen after the Fed minutes released last week revealed that the central bank was planning to wind down its $4.5trn balance sheet. She was due to take part in a Q&A session at the University of Michigan after the close of markets.

On the corporate front, deal news was a bright spot. Swift Transportation soared on news the trucking company is to merge with rival Knight Transportation - which also racked up strong gains - in a deal worth $6bn.

Straight Path Communications rallied after AT&T offered a large premium to buy the owner of wireless spectrum licenses.

Mondelez International traded higher following reports it is set to look for a successor to chief executive officer Irene Rosenfeld.

Delta Air Lines slipped after a string of cancellations and delays, while software company Okta Inc fell after its shares surged in their Nasdaq debut on Friday.