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U.S. stocks rise on oil boost

Xinhua, February 3, 2015 Adjust font size:

U.S. stocks pared early losses and turner higher at midday Monday despite soft data, as investors were cheered up by relatively stable oil prices.

At noon, the Dow Jones Industrial Average rose 28.92 points, or 0.17 percent, to 17,193.87. The S&P 500 gained 7.34 points, or 0. 37 percent, to 2,002.33. The Nasdaq Composite Index added 3.81 points, or 0.08 percent, to 4,639.05.

Investor sentiment was buoyed by the strong rebound in oil prices. U.S oil price increased more than 2 percent around midday Monday following Friday's biggest daily gains since June 2012.

Moreover, Exxon Mobil reported better-than-expected earnings before the opening bell Monday. The company announced estimated full-year 2014 earnings of 32.5 billion dollars compared with 32.6 billion dollars a year earlier, which reflected the strength of its integrated business model in a lower price environment. Shares of Exxon Mobil rose 1.21 percent around midday.

However, economic data came out negative. U.S. consumer spending, accounting for more than two-thirds of U.S. economy activity, fell 0.3 percent in December, the biggest decline since 2009, the Commerce Department said Monday in a report. Analysts said households tended to save the extra cash from falling gasoline prices and steady hiring.

Separate data from the Department showed construction spending rebounded 0.4 percent in December from November's 0.2-percent decline. The December reading trailed market expectations of a 0.6- percent gain.

The U.S. manufacturing Purchasing Manager's Index (PMI) registered 53.5 in January, the worst performance in a year, missing market consensus of 54.5, reported the Institute for Supply Management on Monday.

Meanwhile, the final seasonally adjusted Markit U.S. manufacturing PMI came in at 53.9 in January, well above the neutral 50.0 threshold, but also slightly shy of market estimates.

U.S. stocks slumped after a choppy session Friday, as the U.S. government announced the economy grew slower in the final quarter of 2014. Endite