LONDON: US stocks closed a choppy day with strong expands led by petroleum-linked stocks as oil prices climbed again.
The Dow Jones Industrial Average gained 196.09 points (1.14 per cent) to 17,361.04 on Monday, after earlier falling as low as 17,037.76.
The broad-based S&P 500 jumped 25.86 (1.30 per cent) to 2,020.85, while the tech-rich Nasdaq Composite Index gained 41.45 (0.89 per cent) to 4,676.69.
Analysts said the volatility demonstrated the edginess in the markets.
“People are very nervous,” said Michael James, managing director of equity trading at Wedbush Securities.
Energy stocks surged as US oil prices rose for the third straight session behind news of lower rig counts and exploration spending cuts.
Dow member Chevron rose 3.3 per cent, while oil services company Halliburton surged 3.8 per cent.
Dow component ExxonMobil gained 2.5 per cent as fourth-quarter earnings were $1.56 per share, 22 cents above analyst expectations. Earnings fell 21.3 per cent to $6.6 billion due to lower oil prices and lower petroleum output.
Apple rose 1.3 per cent as it prepared to raise some $6.5 billion in a bond issue more than originally expected and at a lower yield than expected, according to reports. The funds will go for stock repurchases, dividend payments and debt repayments.
Tesla Motors gained 3.6 per cent after a report called the electric-car manufacturer a beneficiary of a strong dollar because about 70 per cent of its components come from overseas.
Food distributor Sysco fell 1.9 per cent after it announced a package of divestitures as it seeks regulatory approval of its acquisition of US Foods. Analysts said the divestitures may not be sufficient to win approval from the US Federal Trade Commission for the deal.
E-commerce company Pitney Bowes slumped 7.2 per cent as it projected 2015 earnings of $1.85-$2.00 per share. Analysts had forecast $1.99 per share.
Bond prices fell. The yield on the 10-year US Treasury rose to 1.68 per cent from 1.64 per cent Friday, while the 30-year advanced to 2.26 per cent from 2.23 per cent. Prices and yields move inversely.
