US open: Stocks lifted by rally in oil prices

US stocks were lifted on Friday by a jump in oil prices on expectations of a production freeze by major exporters to address the supply glut.

The Dow Jones Industrial Average increased 0.51%, S&P 500 climbed 0.32% and Nasdaq gained 0.16% at 1432 GMT.

Oil prices gained with West Texas Intermediate crude up 1.0% to $40.62 a barrel and Brent crude 1.2% higher at $42.12 at 1505 GMT.

Prices have risen more than 50% from 12-year lows reached in December after Organization of the Petroleum Exporting Countries (OPEC) floated the idea of a production freeze.

In economic data, the University of Michigan's consumer sentiment index unexpectedly fell in March, to a reading of 90.0 from 91.7 in February and versus expectations of 92.2.

The index for current economic conditions came in at 105.6, down from 106.8 in February but up from March 2015’s reading of 105.0.

Capital Economics said the decline in the consumer sentiment index “illustrates that higher gasoline prices more than offset the positive impact to sentiment from the rebound in stock markets”.

Meanwhile, Federal Reserve Bank of New York President William Dudley said the financial system is “much more resilient” following the 2008 crisis, but “more work still lies ahead” to prevent another one from happening.

Dudley said there were limits to the supervision of banks in averting another crash and urged policymakers to find ways to better educate the industry about the role of supervisors.

“In the wake of the crisis, considerable attention has been devoted to the role that supervisors—including those here at the New York Fed—played in this meltdown,” he said at the Supervision Conference in Manhattan.

“But much of this discussion has taken place without a broad understanding of what supervisors actually do—the scope, breadth and limits of their activities and authorities.”

In corporate news, Software maker Adobe Systems Inc rallied after it reported better-than-expected quarterly results late on Thursday.

Tiffany & Co was also in the black after its fiscal fourth-quarter earnings exceeded analysts’ expectations.

Wynn Resorts edged higher after Deutsche Bank lifted its price target on the stock.

On the downside, clothing retailer Aeropostale tanked following weaker-than-expected fourth-quarter numbers on Thursday and after the company said it was considering selling itself.

In currencies, the US dollar was recovering following losses in the wake of the Federal Reserve’s dovish stance on Wednesday.

The greenback was 0.19% higher versus the euro, down 0.07% against the pound and flat versus the yen.

Morgan Stanley said there was more short-term dollar weakness to come, however.

“The dovish Fed – discouraging USD bulls – has led to a de-positioning move supporting the once shunned currencies. GBP, AUD and many emerging market currencies fall into this category. In this respect, the falling USD has the characteristics of a pain trade that seems to have further to run,” the bank said.

The Federal Reserve on Wednesday decided to keep interest rates unchanged but said it now expects to raise rates twice this year, compared to the four estimated in December.