US close: Stocks end in the black as oil prices recover
US equities reversed earlier losses to end higher on Monday as oil prices recovered, with investors looking ahead to the Federal Reserve’s interest rate decision this week.
The Dow Jones Industrial Average rose 0.6%, the Nasdaq closed up 0.4% and the S&P 500 ended 0.5% higher.
Oil prices recovered from sharp falls earlier in the session as investors continued to worry about the global supply glut.
Brent crude was down 0.5% to $37.36 per barrel and West Texas Intermediate rose 1.8% to $36.26 per barrel, after nearing 11-year lows earlier in the day.
The recovery in oil prices helped Chevron Corp and Exxon Mobil to end with solid gains.
Meanwhile, investors were looking ahead to the Federal Open Market Committee’s two day-meeting this week.
“At this stage, it is almost universally expected that, after a seven-year period at near-zero, the Fed will raise interest rates this Wednesday,” said Capital Economics.
“Like everybody else, we anticipate a 25 basis point increase in the target range for the fed funds rate, taking it to between 0.25% and 0.50%.”
There were no economic data releases of note on Monday, but the pace is set to pick up on Tuesday with the release of US inflation, which is projected to show a year-on-year improvement in November of 0.5% year-on-year after a 0.2% gain the prior month.
The dollar was flat against the euro and the yen but 0.4% firmer against the pound, while spot gold was down 1% at $1,063.75
On the corporate front, shares in household goods maker Jarden surged on news it will merge with Newell Rubbermaid to create a company that will bring in $16bn in revenue.
Newell Rubbermaid slumped as it said it will pay Jarden shareholders $60 a share in cash and stock.
AstraZeneca’s US shares fell after the pharmaceuticals giant confirmed that it is exploring potential strategic options with biotech company Acerta Pharma.
GoPro Inc tumbled after Citibank downgraded the stock to ‘neutral’ from ‘buy’ and cut its price target.
S&P 500 - Risers
First Solar Inc. (FSLR) $58.42 +5.72%
Electronic Arts Inc. (EA) $69.66 +3.71%
Diamond Offshore Drilling Inc. (DO) $20.86 +3.52%
Chevron Corp. (CVX) $89.32 +3.33%
Mattel Inc. (MAT) $27.08 +3.16%
Rowan Companies plc (RDC) $18.02 +3.00%
Baxalta Incorporated (BXLT) $38.14 +2.97%
Kimberly-Clark Corp. (KMB) $122.64 +2.89%
ConocoPhillips (COP) $49.50 +2.85%
Hershey Foods Corp. (HSY) $89.88 +2.80%
S&P 500 - Fallers
Edwards Lifesciences Corp. (EW) $80.53 -49.58%
Peabody Energy Corp. (BTU) $7.65 -13.27%
Southwestern Energy Co. (SWN) $5.34 -9.58%
NRG Energy Inc. (NRG) $9.20 -9.27%
Tenet Healthcare Corp. (THC) $27.24 -9.20%
Newell Rubbermaid Inc. (NWL) $42.15 -6.91%
Qorvo, Inc. (QRVO) $52.47 -6.62%
Seagate Technology Plc (STX) $33.66 -6.45%
Freeport-McMoRan Inc (FCX) $6.47 -6.27%
Devon Energy Corp. (DVN) $31.52 -6.05%
Dow Jones I.A - Risers
Chevron Corp. (CVX) $89.32 +3.33%
Exxon Mobil Corp. (XOM) $76.03 +2.27%
Microsoft Corp. (MSFT) $55.16 +2.03%
3M Co. (MMM) $157.72 +1.87%
Wal-Mart Stores Inc. (WMT) $60.38 +1.72%
Verizon Communications Inc. (VZ) $45.41 +1.32%
Cisco Systems Inc. (CSCO) $26.49 +1.26%
Nike Inc. (NKE) $127.83 +1.22%
Walt Disney Co. (DIS) $109.32 +1.18%
Home Depot Inc. (HD) $131.97 +1.17%
Dow Jones I.A - Fallers
E.I. du Pont de Nemours and Co. (DD) $67.90 -3.60%
Boeing Co. (BA) $143.00 -1.12%
Apple Inc. (AAPL) $112.47 -0.63%
United Technologies Corp. (UTX) $93.05 -0.27%
Goldman Sachs Group Inc. (GS) $176.22 -0.19%
Unitedhealth Group Inc. (UNH) $115.86 -0.10%
American Express Co. (AXP) $68.83 -0.04%
Nasdaq 100 - Risers
Electronic Arts Inc. (EA) $69.66 +3.71%
Mattel Inc. (MAT) $27.08 +3.16%
Amazon.Com Inc. (AMZN) $657.89 +2.77%
Incyte Corp. (INCY) $109.41 +2.73%
Facebook Inc. (FB) $104.71 +2.53%
Cognizant Technology Solutions Corp. (CTSH) $59.76 +2.50%
CA Inc. (CA) $27.74 +2.17%
Microsoft Corp. (MSFT) $55.16 +2.03%
Adobe Systems Inc. (ADBE) $93.27 +2.02%
Activision Blizzard Inc. (ATVI) $37.96 +1.99%
Nasdaq 100 - Fallers
Seagate Technology Plc (STX) $33.66 -6.45%
Western Digital Corp. (WDC) $59.38 -4.35%
Liberty Global plc Series A (LBTYA) $39.79 -3.87%
Skyworks Solutions Inc. (SWKS) $78.51 -3.59%
Discovery Communications Inc. Class C (DISCK) $25.35 -3.43%
Discovery Communications Inc. Class A (DISCA) $26.45 -3.36%
Liberty Global plc Series C (LBTYK) $38.37 -3.11%
Micron Technology Inc. (MU) $13.66 -2.71%
Dish Network Corp. (DISH) $57.59 -2.39%
Vimpelcom Ltd Ads (VIP) $3.04 -2.25%