The Standard & Poor’s 500 index rose four points, or 0.2 percent, to 1,943.
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Energy stocks were among the biggest decliners.
US stocks are opening higher, led by gains in oil and gas companies as the price of crude turns higher. The Nasdaq Biotechnology Index rose 1.5 per cent, snapping its longest losing streak since September, after the gauge wiped out an earlier 2 per cent slide. Investors were weighing the latest company earnings and economic news from of China. The Shanghai Composite yoyo’d in and out of negative territory and closed down 2.4 percent at 2,949.60.
THE QUOTE: “Investors have one eye on China, and all that’s going on there, and the other eye on oil”, said Erik Davidson, chief investment officer at Wells Fargo Private Bank. “Those two things are keeping investors on pins and needles right now”.
The S&P 500’s index of energy companies added 0.4 per cent after trading down over 2 per cent at one stage as U.S. oil prices briefly dipped under $US30. The onshore Chinese yuan steadied for the third day in a row after weakening sharply last week and the offshore yuan rose to its highest level against the United States dollar so far this year.
Apple was the biggest positive for the S&P 500 and Nasdaq. Utilities and telecommunications services stocks fell.
On other commodities markets, spot iron ore fell half a per cent to $US41.50 a tonne on Friday.
A stronger dollar and failure to stem a global glut of supply have weighed on oil prices in recent months, while mounting concerns about China’s slowing growth have magnified fears about demand from the world’s second-largest economy.
Alcoa (NYSE:AA) unofficially kicked off the earnings season on Monday.
“The No. 1 most-mentioned item in third-quarter reports was weakness in China”, Pride said. On Monday, the benchmark rate slid 5.3 percent, to settle at $31.41 a barrel on Monday.
Traders continued to take their cue from oil prices by parting with stocks in energy and mining companies. Consol Energy shed 46 cents, or 6.6 percent, to $6.54. The stock added $3.25 to $67.53.
The S&P energy sector gave up most of its gains and was up marginally at 0.18 percent. The sector remains down 8.5 percent this year. The U.S. benchmark’s losses since the start of 2016 still leave it more than 9 percent below its all-time high set in May. UnitedHealth rose 1.7 percent, providing the biggest boost to the Dow. BorgWarner lost $4.20, or 11.2 percent, to $33.20.
HEALTHY OUTLOOK: HCA Holdings climbed 5.1 percent after the hospital operator raised its profit forecast. General Motors jumped 3.3 percent to $31.31 after raising its 2016 profit outlook and dividend.
The S&P 500 traded at its low for the session in NY, with losses extending after Europe’s markets closed modestly higher.
Peabody shares lost 16.0 per cent to US$4.48 – compared with $100 a share a year ago – amid worries its heavy debt load and sinking coal demand could force it to seek protection as well.
Technical indicators also suggested a rebound was in order, even if it is just short-lived, analysts said. Japan’s Topix index rallied from its lowest level since September, advancing 2.9 per cent, and Hong Kong’s Hang Seng Index rose 1.1 per cent.
Gold fell $1.70 to $1,096.20 an ounce, while silver fell 5 cents to $13.86 an ounce.
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BONDS AND CURRENCIES: The yield on the 10-year Treasury note fell to 2.09 percent from 2.11 percent late Tuesday. Meanwhile, Chinese exports posted their annual decline a year ago since 2009, but falls in exports in December were smaller than expected.
