New York: The US stocks extended gains on Tuesday as investors were encouraged by a strong rebound in oil prices.
The Dow Jones Industrial Average added 89.39 points, or 0.50 percent, to 17,918.15 points. The S&P 500 gained 5.74 points, or 0.27 percent, to 2,109.79. The Nasdaq Composite Index increased 17.98 points, or 0.35 percent, to 5,145.13, XInhua news agency reported.
Oil prices surged on Tuesday as market expected the US refiners to consume more crude after the maintenance season, with both the US oil and Brent crude spiking over 3 percent.
Lifted by the soaring oil prices, the energy sector jumped 2.53 percent as the biggest advancer in the S&P 500’s 10 sectors.
On the economic front, the US new orders for manufactured goods in September decreased $4.7 billion, or 1.0 percent, to $466.3, the commerce department reported Tuesday. This followed a 2.1 percent August decline.
Traders will mainly look to non-farm payrolls this week for hints on the timing of an interest rate hike from the US Federal Reserve.
Wall Street will also keep a close eye on comments from Federal Open Market Committee members on Wednesday, including Fed Chair Janet Yellen, Vice Chair Stanley Fischer and New York Fed President William Duley.
In corporate news, shares of UBS fell 5.83 percent to $19.22 apiece Tuesday, after Switzerland’s biggest bank posted lower-than-expected quarterly profit.
UBS announced a third-quarter net profit of about $2.13 billion.
Latest data from Thomson Reuters showed that S&P 500 companies’ blended earnings in the third quarter of 2015 are expected to decline 1.5 percent year on year, while revenue growth is forecast to decrease 4.2 percent.
The CBOE Volatility Index, often referred to as Wall Street’s fear gauge, increased 2.76 percent to end at 14.54 on Tuesday.
In other markets, the US dollar traded mixed against other major currencies as investors were digesting the country’s newly-released economic data.
In late New York trading, the euro fell to $1.0963 from $1.1021 in the previous session, while the dollar bought 121.06 Japanese yen, higher than 120.75 yen of the previous session.
Gold futures on the COMEX division of the New York Mercantile Exchange fell as a stronger US dollar and Fed rate hike speculation put pressure on the precious metal.
The most active gold contract for December delivery fell $21.8, or 1.92 percent, to settle at $1,114.10 per ounce.