US open: Stocks climb as oil prices stage recovery

US stocks advanced on Tuesday as oil prices recovered and investors weighed economic data.

At 1430 GMT, the Dow Jones Industrial Average rose 0.47%, the Nasdaq increased 0.52% and the S&P 500 climbed 0.56%.

The US S&P/Case-Shiller Composite-20 house price index rose 5.5% year-on-year in October, compared to analysts’ estimates of 5.6% and the previous month’s 5.45%.

Separately, data from the Census Bureau showed the US trade deficit on goods in November narrowed to $60.5bn from an upward revised $61.96bn the previous month.

Analysts had been expecting a deficit of $60.7bn in November. Imports fell 1.8% last month while exports dropped 2%.

Meanwhile, oil prices steadied after crude dropped more than 3% on Monday. West Texas Intermediate was up 1.5% at $37.38 a barrel while Brent crude was 2.07% firmer, at $37.37 per barrel.

Oil was being weighed down by news that Saudi Arabia was planning to cut its public budget to combat a prolonged slump as well as reports that Iran plans to up exports by 500,000 barrels a day once economic sanctions are removed.

On the corporate front, Willis Group Holding and Towers Watson & Co. were sitting higher after the S&P Dow Jones Indices announced late on Monday that Willis Tower Watson will join the S&P 500. The companies are in the process of merging.

Pep Boys surged after billionaire investor Carl Icahn raised his bid for the car parts and repair chain to value it at $1bn.

Whole Foods edged up after the company agreed to pay $500,000 to settle allegations that its stores were overcharging customers for pre-packaged foods.

In currencies, the greenback was 0.37% higher against the euro, up 0.49% against the pound and up 0.05% against the yen.