NEW YORK (AP) — U.S. stocks moved modestly higher in early trading Monday, rebounding after two days of heavy selling last week. Energy stocks continued to fall as the price of oil fell.
KEEPING SCORE: The Dow Jones industrial average rose 122 points, or 0.7 percent, to 17,250 as of 9:50 a.m. Eastern. The Standard & Poor’s 500 index rose 14 points, or 0.7 percent to 2,019 and the Nasdaq composite rose 31 points, or 0.6 percent, to 4,955.
OIL PROBLEMS: Crude oil continued to sell off, hitting levels not seen since the financial crisis. Crude oil was down 68 cents, or 1.8 percent, to $35.40 a barrel. Brent crude, which is used to price international oils, was down 69 cents, or 1.9 percent, to $36.18 a barrel.
Energy stocks continued to fade as a result, making it the only part of the S&P 500 that was lower. Newfield Exploration was down $1.48, or 5 percent, to $30.11. ConocoPhillips fell 93 cents, or 2 percent, to $44.99.
FED FADING: The market impact of the Federal Reserve’s decision last week to raise interest rates for the first time in nearly a decade has faded. On Friday, U.S. stocks plunged as many traders booked profits accumulated when the Fed finally ended the uncertainty over its intentions. The Dow dropped 2.1 percent Friday.
But stocks often rally somewhat after sharp sell-offs, so Monday’s buying is partly a recovery from last week’s drop.
SANTA RALLY? The holiday-shortened last two weeks of the year typically are positive for the market, since investors close out positions and the light volume tends to distort any market moves. However, most investors are done trading for 2015 as this point. U.S. markets will close early on Thursday for Christmas Eve and will be closed for Christmas.
“Today’s calendar is relatively light, and with liquidity getting thinner over the course of the week, the potential for exaggerated moves is very real,” said Chris Beauchamp, senior market analyst at IG. “The default direction is still likely to be up, given past performance.”
CURRENCIES: The dollar fell against the euro to $1.0895 while the dollar was mostly unchanged against the yen at $121.15.
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