Wall Street opens higher as oil prices boost energy shares

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., May 9, 2016. REUTERS/Brendan McDermid/File Photo

Wall Street opened higher on Tuesday, tracking global equities, as investors’ appetite for risk increased and as oil prices rose, boosting energy shares.

Oil was up about 1.5 percent, driven by supply disruptions in Canada and elsewhere that have knocked out 2.5 million barrels of daily production and overshadowed fears of oversupply.

World stock markets also rose, helped by solid corporate earnings in Europe, progress on Greek debt talks, and a new pledge by Japan that it was prepared to weaken its currency.

The S&P 500, which has risen about 15 percent since its February lows, has slowed its rally in the last two weeks due to underwhelming quarterly earnings and mixed U.S. economic data.

“The market has been resilient and has offered the opportunity for the buyers of the pullback to capitalize on it and that’s why we’re seeing a move back into equities,” said Andre Bakhos, managing director at Janlyn Capital LLC in Bernardsville, New Jersey.

U.S. stocks broke a three-day losing streak to close higher on Friday after a disappointing U.S. jobs report suggested the Federal Reserve would raise rates just once this year. Wall Street also ended mostly higher on Monday, helped by a rally in healthcare shares.

At 9:37 a.m. ET (1337 GMT) on Tuesday, the Dow Jones industrial average .DJI was up 117.04 points, or 0.66 percent, at 17,822.95.

The S&P 500 .SPX was up 10.77 points, or 0.52 percent, at 2,069.46 and the Nasdaq Composite .IXIC was up 15.73 points, or 0.33 percent, at 4,765.94.

All 10 major S&P sectors were higher, led by a 0.75 percent rise in the energy index .SPNY.

Amazon’s (AMZN.O) 2.5 percent rise was the biggest boost on the S&P and the Nasdaq, while Goldman Sachs’ (GS.N) 1.3 percent increase helped lift the Dow.

Investors will be watching out for wholesale inventories data at 10 a.m. ET, keen to see if inventories, which fell at their fastest pace in nearly three years in February, rebounded 0.1 percent, as analysts expect, in March.

Gap (GPS.N) shares fell 11.8 percent to $19.23 after the retailer reported a decline in sales for the fifth straight quarter.

SolarCity (SCTY.O) was down 23.3 percent at $17.31 after the solar panel maker posted a bigger-than-expected quarterly loss and cut its forecast.

Allergan (AGN.N) was up 5.4 percent at $225.50 after the Botox maker reported a better-than-expected quarterly profit.

Dow component Disney (DIS.N) and videogame publisher Electronic Arts (EA.O) are scheduled to report after the closing bell.

Advancing issues outnumbered decliners on the NYSE by 1,900 to 708. On the Nasdaq, 1,375 issues rose and 811 fell.

The S&P 500 index showed 31 new 52-week highs and two new lows, while the Nasdaq recorded 18 new highs and 22 new lows.