The Nasdaq Composite crawled back above the 5,000 level on a day when the major benchmarks rose for the second day in a row.
The indexes were given a lift by energy stocks, which were wanted after the price of West Texas intermediate (WTI) ended the day at a premium to the European benchmark, Brent crude, for the first time in more than five years.
WTI for February delivery rose 33 cents to US$36.14 a barrel, while in London, the February Brent crude future contract was down 24 cents at US$36.11.
The Nasdaq Composite finished the day at 5,001, up 32 points, or 0.65%, but it was outshone by the Dow Jones, up 0.96% at 17,417 and the S&P 500, up 0.88% at 2,039.
Mid-session
Energy stocks led US markets higher in the morning session, as crude oil prices recovered from their recent battering.
Joining energy stocks on the rise was data storage outfit NetApp (NASDAQ:NTAP), despite Macquarie slicing its price target to US$30. The company announced yesterday it would buy rival SolidFire for US$870mln.
Tech giant Apple (NASDAQ:AAPL) also had its price target cut – from US$135 to US$130 – by Cowen & Company.
On the NASDAQ market, pSivida (NASDAQ:PSDV) soared by a third after it announced positive results from a clinical trial of Medidur, its treatment for eye condition posterior uveitis.
At around 1.30pm, the Dow was sitting on a 122 point gain at 17,373 and the S&P 500 was up 11 at 2,032. The Nasdaq Composite, weighed down by Apple, was up just 10 points at 4,979.
US open
US stocks made a steady start on what looks set to be a quiet day as Christmas Day approaches.
The S&P 500 was up just under a point at 2,022 while the Dow Jones edged up 26 points to 17,277; the Nasdaq Composite was four points firmer at 4,973.
US gross domestic product (GDP) rose at a revised 2% annualized rate in the third quarter, down from the initial estimate of 2.1% but a tad above the 1.9% predicted by economists.
Preppie clothier Abercrombie & Fitch (NYSE:ANF) was wanted after it promoted Fran Horowitz, the head of its Hollister brand, to the role of merchandising chief. Meanwhile, Christos Angelides, the retailer's brand president and regarded as a rival to Horowitz for the top role at Abercrombie & Fitch, has grabbed his coat and got on his bike.
Perseon (NASDAQ:PRSN) shareholders took a bath, with the shares shedding 43.3%, as Galil Medical's tender offer to acquire the company expired.
Meanwhile, in the futures markets, West Texas intermediate for February delivery advanced 20 cents to one cent short of US$36 a barrel.
US pre-open
After putting on a late spurt on Monday, equities are set to come out of the stalls fast on Tuesday, following the lead of European markets.
After hitting 11-year lows on Monday, oil prices rallied somewhat, with Brent crude lifting 0.9% to US$36.68 and US light crude gaining 1.1% to US$36.22, which bodes well for US energy stocks.
A light day is in prospect on both the corporate and macroeconomic front.
ConAgra (NYSE:CAG) is scheduled to report ahead of the start of trading while sportswear maker Nike (NYSE:NKE) will be making its move after the bell tonight.
“A general lack of economic announcements over the festive period means that any relatively lesser figures will likely be treated with a greater degree of importance. The US GDP figure … will thus provide markets with a central focus despite the fact that this represents merely a revision, rather than the more keenly watched advance reading,” noted Joshua Mahony of spread betting firm IG.
According to IG, the Dow is set to open at around 17,290, up almost 40 points on last night's close, while the broader-based S&P 500 is seen kicking off six points or so higher at 2,027.