U.S. stocks ended slightly higher, after remaining in the red for most of Monday’s trading session as the energy sector weighed down on the markets. A fresh decline in oil prices has hit energy-related shares, including Exxon Mobil (N:XOM) and Chevron (N:CVX), who have been the worst performers under the Dow Jones index. Other commodities suffered as well as the dollar regained some of its strength. The downward pressure was increased with the release of worse-than-expected earnings reports from Morgan Stanley (N:MS), Hasbro (O:HAS) and more. However, Monday’s sluggish trading may offer an indication to investors’ wanting to see more third-quarter earnings reports, according to some analysts. Regardless, the upcoming week includes a slew of earnings reports. The Dow Jones Industrial Average added 14.57 points, or 0.1%, to trade at 17,230.54. The Standard and Poor’s 500 index rose 0.55 points, or 0.03%, to trade at 2,033.66. The Nasdaq Composite gained 18.78 points, or 0.4%, to close Monday’s session at 4,905.47. Despite remaining relatively flat, Monday marked the third consecutive session of gains. Five of the S&P’s 10 sectors rose on Monday, led by a 0.5% gain in the consumer discretionary sector. For the year, this sector is around 9% up. The energy sector was hit the hardest after oil prices fell. Exxon Mobil fell nearly 2% to trade at $80.99 and Chevron tumbled 1.4% to trade at $90.03. According to analysts, while the ongoing supply glut has a hand in the latest round of declines, the strength of the dollar is likely the driving force behind the recent drop in energy prices. However, oil prices have since recovered during the early Asian trading session after falling 3% on the previous session. Gains were slightly capped by oversupply concerns and the outlook for global economic growth, which provides an indication for future demand. Brent crude added 11 cents to trade at $48.72 a barrel after falling 3.7% in the previous day. Crude oil gained 13 cents to trade at $46.02 a barrel after falling 3% in the previous day.
European shares also climbed on Monday as Deutsche Bank AG (DE:DBKGn) recovers after an overhaul. The Stoxx Europe 600 added 0.31% to close the day at 364.25. Despite the overall gains, the index’s basic materials, gas and oil sectors suffered declines after China posted its slowest growth data since 2009. The German DAX 30 gained 0.59% to trade at 10,164.31, led by Deutsche Bank. The French CAC 40 rose 0.03% to trade at 4,704.07 as Danone (OTC:DANOY) posted the best performance of all components.
In economic data releases, Australia’s central bank will release its latest minutes on Tuesday, followed by an interest rate decision by the Bank of Canada. The European Central Bank will hold a meeting on Thursday, announcing any changes to interest rates. However, judging by the central bank’s recent remarks, changes in policy are not likely.