US open: Stocks rise as traders shrug off oil price decline

US stocks gained on Monday as investors shrugged off a decline in oil prices and worse-than-expected Chinese trade data.

At 1513 BST, the Dow Jones Industrial Average rose 0.06%, the S&P 500 increased 0.26% and the Nasdaq climbed 0.23%.

In contrast oil prices reversed an earlier rally amid a government shake-up in Saudi Arabia. Saudi Arabia’s veteran oil minister Ali al-Naimi will be replaced by Saudi Aramco chief executive Khalid al-Falih.

Oil was rising earlier on Monday, underpinned by the wildfires in the Canadian province of Alberta and strong Chinese crude import data, which showed a 7.6% increase in April on the year.

West Texas Intermediate crude fell 1.2% to $44.12 per barrel and Brent declined 1.7% to $44.58 per barrel at 1514 BST.

Meanwhile, data out of China over the weekend showed imports and exports fell more than expected in April. Exports dropped 1.8% on the year versus expectations for a flat reading, while imports tumbled 10.9% from the previous year, which was a much steeper fall than the 4% expected.

Stateside, there are no macroeconomic releases due with traders continuing to mull Friday’s disappointing non-farm payrolls report.

Stocks on Wall Street finished in the black on Friday after the non-farm payrolls report showed the US added fewer jobs than expected in April, sparking hopes the Federal Reserve won’t hike rates anytime soon. Payrolls rose by 160,000 versus expectations for a 200,000 gain.

“Probability for a rate hike at the June FOMC had been at 32% prior to Friday’s jobs numbers but has subsequently dropped to just 19%, however the wage growth could be the shining light that keeps a move in rates solidly on the table in the run up to the Fed meeting on June 15, after Janet Yellen removed her fears about the global market effect on the US economy,” said James Hughes, chief market analyst at GKFX.

On the corporate front, Tyson Foods advanced after the meat supplier raised its full year profit forecast due to strong consumer demand.

Sotheby’s was in the red after reporting a first quarter loss as auction revenue fell.

Krispy Kreme Doughnuts surged after agreeing to buy Kenco coffee owner, JAB Holding, for $1.35bn.