US close: Stocks end higher as volumes begin to drop ahead of Christmas

US stocks closed higher on Monday, recouping some of the losses incurred during the two-day slump at the end of last week, as investors shrugged off weak oil prices.

The Dow Jones Industrial Average closed up 0.7%, the S&P 500 ended 0.8% higher and the Nasdaq Composite rose 0.9%.

Overall, trading volumes were a little thin, with many investors already out of the game at the start of a shorter week, with markets closing early on Christmas Eve.

The only major US data release of the day was the Chicago Federal Reserve National Activity Index - a monthly index of overall economic activity. It moved down to -0.30 in November, from -0.17 in October. Its three-month moving average decreased to -0.20 from -0.18.

"November's (moving average) suggests that growth in national economic activity was somewhat below its historic trend", the Chicago Fed said in a statement.

"The economic growth reflected in this level ... suggests subdued inflationary pressure from economic activity over the coming year."

Meanwhile, investors decided to overlook declining oil prices. Brent crude was 1.8% weaker at $36.20 a barrel, having hit lows not seen since 2004, but West Texas Intermediate fared a little better, paring losses to trade flat at $34.74 a barrel.

Still, James Hughes, chief market analyst at GKFX, said commodity prices would remain key for stock market gains in this short holiday trading week.

"Volume will be light, so traders will have to keep an eye on oil as many start to take profits and come out of positions as we approach the end of the year", he said.

"Santa may be just around the corner, but don't rule out the commodity rout stealing the limelight just yet."

On the currency front, the dollar nudged down 0.1% against the yen and slipped 0.5% versus the euro, but gained 0.2% against the pound.

On the corporate front, Tiffany & Co was in the black after its shares were upgraded from 'hold' to 'buy' by Jefferies, and its price target was raised from $88 to $100. The bank described it as a rare opportunity to get a high quality company at a discount.

Shares in Yahoo moved slightly higher after FBR said a sale of the company's core business could fetch between $5.4bn and $7.1bn - far more than some analysts had recently predicted.

Apple was on the front foot after it settled a patent dispute with Swedish telecommunications equipment maker Ericsson.

ONEOK rocketed after the firm issued stronger-than-expected 2016 guidance thanks to volume growth in its natural gas and natural gas liquids businesses.

On the downside, Newfield Exploration was hit by the weak oil price environment.

S&P 500 - Risers

ONEOK Inc. (OKE) $21.85 +15.43%

Tenet Healthcare Corp. (THC) $30.59 +11.60%

CONSOL Energy Inc. (CNX) $7.97 +7.99%

NRG Energy Inc. (NRG) $11.08 +6.85%

Southwestern Energy Co. (SWN) $5.87 +5.96%

United States Steel Corp. (X) $8.42 +5.12%

Cabot Oil & Gas Corp. (COG) $16.24 +4.84%

Avago Technologies Ltd. (AVGO) $145.80 +3.99%

Graham Holdings Co. (GHC) $490.25 +3.96%

Wynn Resorts Ltd. (WYNN) $65.76 +3.72%

S&P 500 - Fallers

Cimarex Energy Co (XEC) $86.18 -5.11%

Juniper Networks Inc. (JNPR) $27.25 -4.99%

Pioneer Natural Resources Co. (PXD) $115.71 -4.59%

Mosaic Company (MOS) $27.24 -4.56%

Newfield Exploration Co (NFX) $30.41 -3.77%

Chipotle Mexican Grill Inc. (CMG) $522.01 -3.52%

Peabody Energy Corp. (BTU) $7.41 -3.01%

Hess Corp. (HES) $47.44 -2.19%

Regeneron Pharmaceuticals Inc. (REGN) $532.44 -2.17%

ConocoPhillips (COP) $45.10 -1.81%

Dow Jones I.A - Risers

JP Morgan Chase & Co. (JPM) $65.54 +1.77%

Pfizer Inc. (PFE) $32.46 +1.47%

Cisco Systems Inc. (CSCO) $26.64 +1.39%

United Technologies Corp. (UTX) $93.61 +1.38%

Unitedhealth Group Inc. (UNH) $117.41 +1.37%

Microsoft Corp. (MSFT) $54.83 +1.29%

Goldman Sachs Group Inc. (GS) $177.75 +1.29%

Apple Inc. (AAPL) $107.32 +1.22%

Wal-Mart Stores Inc. (WMT) $59.55 +1.19%

Visa Inc. (V) $77.17 +1.11%

Dow Jones I.A - Fallers

Walt Disney Co. (DIS) $106.59 -1.05%

Chevron Corp. (CVX) $89.24 -0.63%

Johnson & Johnson (JNJ) $101.58 -0.36%

Exxon Mobil Corp. (XOM) $77.26 -0.03%

Nasdaq 100 - Risers

Vimpelcom Ltd Ads (VIP) $3.45 +5.98%

Avago Technologies Ltd. (AVGO) $145.80 +3.99%

Wynn Resorts Ltd. (WYNN) $65.76 +3.72%

Vertex Pharmaceuticals Inc. (VRTX) $120.56 +3.48%

American Airlines Group (AAL) $42.40 +3.19%

Baidu Inc. (BIDU) $197.59 +2.95%

Walgreens Boots Alliance, Inc. (WBA) $84.89 +2.88%

Micron Technology Inc. (MU) $14.77 +2.86%

QUALCOMM Inc. (QCOM) $48.76 +2.80%

Illumina Inc. (ILMN) $186.81 +2.68%

Nasdaq 100 - Fallers

Regeneron Pharmaceuticals Inc. (REGN) $532.44 -2.17%

Netflix Inc. (NFLX) $116.63 -1.18%

Tractor Supply Company (TSCO) $84.76 -1.11%

Priceline Group Inc (PCLN) $1,275.71 -0.77%

Fastenal Co. (FAST) $38.84 -0.64%

JD.com, Inc. (JD) $32.50 -0.46%

CA Inc. (CA) $28.09 -0.44%

Electronic Arts Inc. (EA) $68.70 -0.41%

Staples Inc. (SPLS) $9.39 -0.32%

Incyte Corp. (INCY) $112.88 -0.31%