U.S. stocks rose more than 1 percent in choppy trade Monday, led by energy stocks as oil prices hit fresh highs for the year so far.
The Dow Jones industrial average added 200 points in afternoon trade. Apple climbed more than 4 percent, tracking for its best day since Jan. 22, and Home Depot (HD) traded more than 2 percent higher as the top contributors to gains.
The Nasdaq composite was up about 1.5 percent, with the iShares Nasdaq Biotechnology ETF (IBB) (IBB) rising 3 percent in afternoon trade.
Energy rose more than 1.5 percent to lead nearly all S&P 500 sectors higher, while utilities were the only decliners. The Dow transports briefly traded more than 1 percent higher.
U.S. crude oil futures settled up $1.51 at $47.72 a barrel, its highest since November.
Brent was near $49 a barrel as both WTI and brent hit fresh highs intraday going back to Nov. 4, 2015. The gains came on growing Nigerian oil output disruptions and after long-time bear Goldman Sachs said the market had flipped to a deficit, ending almost two years of oversupply .
“I think what oil will do today is support a steady to higher trading day,” said Peter Cardillo, chief market economist at First Standard Financial.
“I think oil helps but it plays like a balancing act between the Feds and macro news,” he said, noting investors were watching recent data for indications on the timing of the next Fed rate hike.
Treasury yields were higher, with the 2-year yield near 0.78 percent and the 10-year yield around 1.75 percent as of 1:16 p.m. ET.
The U.S. dollar index was about 0.1 percent lower, with the euro around $1.133 and the yen near 109.02 yen against the greenback.
“We continue to grow positively. Even if it’s slow, at these low interest rate levels we should continue to expand multiples after a period of consolidation,” said Ben Pace, CIO at HPM Partners.
Read More It’s time for the economy to step up
European stocks ended narrowly mixed. German markets were closed for a holiday.
China’s investment, factory output and retail sales all grew more slowly than expected in April, according to data released over the weekend.
Asian stocks closed higher, with the Shanghai composite up about 0.8 percent and the Nikkei 225 rising 0.3 percent.
In U.S. economic news, the Empire State Manufacturing report was minus 9.02 in May versus positive 9.56 in April.
Home builder confidence was unchanged for a fourth-straight month , at 58 in May according to the National Association of Home Builders (NAHB).
U.S. stocks closed lower Friday, with the Dow Jones industrial average and S&P 500 below their 50-day moving averages for the first time since February and posting their first three-week losing streak since January.
April retail sales reported Friday topped expectations with a rise of 1.3 percent.
In early afternoon trade, the Dow Jones industrial average (Dow Jones Global Indexes: .DJI) traded up 160 points, or 0.91 percent, to 17,695, with Apple (AAPL) leading advancers and Nike (NKE) the greatest laggard.
The S&P 500 (^GSPC) rose 18 points, or 0.90 percent, to 2,064, with energy leading nine sectors higher and utilities the only decliner.
The Nasdaq (^IXIC) composite rose 53 points, or 1.12 percent, to 4,770.
The CBOE Volatility Index (VIX) (^VIX), widely considered the best gauge of fear in the market, fell below 15.
About four stocks advanced for every decliner on the New York Stock Exchange, with an exchange volume of 413 million and a composite volume of 1.8 billion in early afternoon trade.
U.S. crude oil futures for June delivery rose $1.40 to $47.61 a barrel on the New York Mercantile Exchange.
Gold futures for June delivery gave up much of their intraday gains to hold about 40 cents higher around $1,273 an ounce as of 1:20 p.m. ET.
—Reuters contributed to this report.
On tap this week:
Earnings: Agilent, Virtusa, Akorn
2 p.m. TIC data
5 p.m. Minneapolis Fed President Neel Kashkari
Earnings: Home Depot, TJX Cos, Red Robin Gourmet Burgers, Vodafone, Children’s Place, Momo
8:30 a.m. CPI; housing starts; building permits
9:15 a.m. Industrial production
12 p.m. San Francisco Fed President John Williams, Atlanta Fed President Dennis Lockhart on a panel
1:15 p.m. Dallas Fed President Rob Kaplan
Earnings: Target, Lowe’s, SAB Miller, Cisco, Hormel, Staples, Booz Allen, L Brands, Salesforce.com, Analog Devices, Burberry, Take Two Interactive
2 p.m. FOMC minutes
Earnings: Wal-Mart, Gap, Applied Materials, Dick’s Sporting Goods, Autodesk, Advanced Auto Parts, Ross Stores, Shoe Carnival, Mentor Graphics, Brocade
8:30 a.m. Jobless claims; Philadelphia Fed survey
10:30 a.m. New York Fed President William Dudley press briefing
Earnings: Campbell Soup, Deere, Foot Locker, The Buckle
10 a.m. Existing home sales
*Planner subject to change.
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