US stocks rise, joining global rally

Tourists pose for pictures with the famous bull sculpture near Wall Street in New York.
Tourists pose for pictures with the famous bull sculpture near Wall Street in New York. PHOTO: BLOOMBERG

NEW YORK (AFP) - Wall Street stocks rose early Monday as oil prices gained, joining a global equity rally ahead of key US economic data releases later in the week.

About 30 minutes into trade, the Dow Jones Industrial Average stood at 16,587.34, up 195.35 points (1.19 per cent).

The broad-based S&P 500 climbed 24.41 (1.27 per cent) to 1,942.19, while the tech-rich Nasdaq Composite Index rose 60.44 (1.34 per cent) to 4,551.37.

US oil prices rose more than five percent after the International Energy Agency said US shale production could fall by 600,000 barrels a day in 2016, lessening a global glut.

Key data releases this week include the Conference Board's reading of consumer confidence for February and a second estimate of US economic growth for the fourth quarter of 2015.

Petroleum-linked shares moved decisively higher, with Dow member Chevron rising 2.1 percent, Apache 3.8 per cent and Halliburton 4.2 per cent.

Large miners also rose, including aluminum producer Alcoa, which jumped 9.0 per cent, and company Freeport-McMoRan, which gained 13.2 per cent.

Amazon advanced 2.6 percent and Tesla Motors 5.2 per cent.

Pharmaceutical company Allergan rose 3.4 percent after reporting that fourth-quarter adjusted net income translated into US$3.41 per share, seven cents above analyst expectations.

VF Corp., which owns the Nautica and Wrangler clothing brands, rose 3.4 percent after reporting that fourth-quarter net income rose 156 per cent to US$312.2 million (S$437.79 million). It forecast that 2016 revenue would rise at a mid single-digit rate.

Foodservices distributor Sysco fell 4.7 percent on news it will acquire European foodservices company Brakes Group for about US$3.1 billion.