US open: Wall Street gains on oil and Apple

US equities were bouncing back after a three-week losing streak led by tech and oil shares despite a recommendation from strategists at Goldman Sachs for investors to follow the old stockmarket adage "to sell in May and go away".

As of 16:21 BST the Dow Jones Industrial Average was rising 119.50 points or 0.69% to 17,655, the S&P 500 was gaining 13.99 points or 0.68% to 2,060.39 and the Nasdaq Composite another 39.62 points or 0.84% to 4,757.94.

Oil prices advanced after Goldman Sachs said the market had finished almost two years of oversupply and moved to a deficit following global production disruptions. Supply disruptions around the world, including in Nigeria, has reached as much as 3.75 million barrels per day, soothing the supply glut that has been blamed for pushing prices down as much as 70% between 2014 and early 2016.

"The oil market has gone from nearing storage saturation to being in deficit much earlier than we expected and we are pulling forward our price forecast, with second quarter/second half of 2016 WTI now $45/bbl and $50/bbl,” Goldman said.

"We believe the industry still has further to adjust and our updated forecast maintains the same 2016-2017 price level we previously believed was required to finally correct both the barrel and capital imbalances, and eventually take prices to $60/bbl."

West Texas Intermediate crude rose 2.65% to $47.47 per barrel and Brent increased 2.447% to $49.02 per barrel.

Offsetting the gains in oil, Chinese data over the weekend disappointed.

China’s industrial output rose 6% year-on-year in April, compared with 6.8% growth a month earlier, the National Bureau of Statistics said on Saturday. Analysts had predicted a 6.6% increase.

Retails sales in China grew 10.1% in April compared to a year ago, following a 10.5% year-on-year rise in March, missing forecasts for a 10.6% gain.

“The drop in retail sales is particularly worrying given that they had been on an upward track since May last year and in the last couple of months the trend has reversed sharply from over 11% at the end of the last quarter of 2015,” said Michael Hewson, senior market analyst at CMC Markets.

“While there was a bit of a pick-up in March this now looks like it was simply a Chinese New Year inspired spike.”

To take note, on Monday strategists at Goldman Sachs also reiterated their end of year target of 2,100 for the S&P 500 but cautioned clients that, "a drawdown during the next few months could find the S&P 500 index falling by 5-10 percent to a level between 1,850 and 1,950."

Shares in Apple were leading the charge higher on Wall Street after Berkshire Hathaway revealed in its latest 13-filing with the SEC that it bough $1bn-worth of shares during the first quarter.

On the corporate front, Amazon advanced on reports that it is expected roll out new lines of private-label brands in the coming weeks.

Yahoo rose amid reports that Warren Buffet is backing a consortium that is bidding for core internet assets of the company.

Pfizer announced buy Anacor Pharmaceuticals in a deal valued at $5.2bn.

USA Today publisher Gannett increased the amount of its all-cash offer for rival Tribune.

From a sector standpoint the best performers were: Mining (3.04%), Computer hardware (3.04%) and Industrial metals (2.89%).

S&P 500 - Risers
Freeport-McMoRan Inc (FCX) $11.29 +8.45%
United States Steel Corp. (X) $14.99 +7.22%
Marathon Oil Corp. (MRO) $13.07 +6.30%
Devon Energy Corp. (DVN) $34.25 +5.32%
Transocean Ltd. (RIG) $9.72 +5.08%
Williams Companies Inc. (WMB) $20.27 +4.75%
FMC Technologies Inc. (FTI) $28.80 +4.46%
Murphy Oil Corp. (MUR) $30.40 +4.32%
Southwestern Energy Co. (SWN) $11.74 +4.26%
McKesson Corp. (MCK) $172.57 +4.00%

S&P 500 - Fallers
Westrock Company (WRK) $38.92 -8.55%
Range Resources Corp. (RRC) $39.65 -5.62%
Chipotle Mexican Grill Inc. (CMG) $444.71 -2.98%
Time Warner Cable Inc. (TWC) $210.91 -2.13%
Lam Research Corp. (LRCX) $73.00 -1.80%
Monsanto Co. (MON) $98.36 -1.58%
Facebook Inc. (FB) $117.99 -1.52%
KLA-Tencor Corp. (KLAC) $67.65 -1.38%
Discovery Communications Inc. Class C (DISCK) $26.68 -1.33%
Marathon Petroleum Corporation (MPC) $35.02 -1.32%

Dow Jones I.A - Risers
Apple Inc. (AAPL) $93.57 +3.37%
Caterpillar Inc. (CAT) $71.26 +1.70%
E.I. du Pont de Nemours and Co. (DD) $63.88 +1.53%
Chevron Corp. (CVX) $102.00 +1.25%
Cisco Systems Inc. (CSCO) $26.86 +1.24%
Home Depot Inc. (HD) $134.78 +1.24%
Boeing Co. (BA) $133.71 +1.20%
General Electric Co. (GE) $29.99 +1.18%
Intel Corp. (INTC) $30.25 +1.14%
United Technologies Corp. (UTX) $101.26 +0.99%

Dow Jones I.A - Fallers
Walt Disney Co. (DIS) $99.56 -0.96%
Nike Inc. (NKE) $56.86 -0.79%
Travelers Company Inc. (TRV) $112.21 -0.41%
American Express Co. (AXP) $63.92 -0.31%
Verizon Communications Inc. (VZ) $50.88 -0.13%
McDonald's Corp. (MCD) $128.77 -0.05%

Nasdaq 100 - Risers
Baidu Inc. (BIDU) $166.31 +4.11%
Regeneron Pharmaceuticals Inc. (REGN) $383.80 +3.88%
Apple Inc. (AAPL) $93.57 +3.37%
JD.com, Inc. (JD) $23.31 +2.94%
Nxp Semiconductors Nv (NXPI) $85.50 +2.93%
Yahoo! Inc. (YHOO) $37.49 +2.78%
Incyte Corp. (INCY) $75.19 +2.70%
Ctrip.Com International Ltd. Ads (CTRP) $44.12 +2.58%
Skyworks Solutions Inc. (SWKS) $62.30 +2.55%
Nvidia Corp. (NVDA) $42.01 +2.53%

Nasdaq 100 - Fallers
Charter Communications Inc. (CHTR) $206.39 -3.82%
Lam Research Corp. (LRCX) $73.00 -1.80%
Facebook Inc. (FB) $117.99 -1.52%
KLA-Tencor Corp. (KLAC) $67.65 -1.38%
Discovery Communications Inc. Class C (DISCK) $26.68 -1.33%
Mattel Inc. (MAT) $30.66 -1.32%
Amazon.Com Inc. (AMZN) $701.04 -1.25%
Discovery Communications Inc. Class A (DISCA) $27.64 -1.22%
Starbucks Corp. (SBUX) $55.26 -1.00%
Twenty-First Century Fox Inc Class B (FOX) $28.98 -0.89%