Spurt in oil prices sends US stock indexes to record highs

Traders work on the floor of the New York Stock Exchange

Traders work on the floor of the New York Stock Exchange

The S&P 500 .SPX was up 10.12 points, or 0.42 percent, at 2,401.02 and the Nasdaq Composite .IXIC was up 21.12 points, or 0.35 percent, at 6,142.35. As a result, the energy sector of the S&P 500 was the top performing sector with a gain of 1.25%.

Advancing issues outnumbered declining ones on the NYSE by a 2.95-to-1 ratio; on Nasdaq, a 1.95-to-1 ratio favored advancers.

The NAHB Housing Market Index for May, is expected to remain unchanged at 68 from the month before.

Oil hit a three-week high after top exporters Saudi Arabia and Russian Federation said supply cuts needed to last into 2018, a step toward extending an OPEC-led deal to support prices for longer than originally agreed.

At 10:53 a.m. ET (1453 GMT), the Dow Jones Industrial Average was up 89.46 points, or 0.43 percent, at 20,986.07.

Both the S&P 500 and Nasdaq closed Monday at record highs. FireEye surged 7.5 per cent, Palo Alto Networks 2.7 per cent and Symantec 3.2 per cent.

Economic news: A gauge of New York-area manufacturing slumped into negative territory (http://www.marketwatch.com/story/empire-state-index-slumps-in-may-to-first-negative-reading-since-election-2017-05-15) for the first time since the presidential election.

WHAT, ME WORRY? Markets around the world made only modest moves Monday, continuing a weekslong trend. The worldwide "ransomware" cyberattack continued to spread on Monday, while politicians in Washington wonder whether Republicans' odds of implementing pro-business have weakened.

North Korea over the weekend tested another ballistic missile over the Sea of Japan on Sunday (http://www.marketwatch.com/story/north-koreas-ballistic-missile-launch-viewed-as-challenge-to-new-president-in-south-2017-05-13), seen as a direct challenge to the newly elected president of South Korea, Moon Jae-in.

For the most part, signs of a strengthening global economy and improving corporate profits have been enough to allay investors' fears and push markets to new heights.

"We do really see this prevailing sense of complacency", said Jon Adams, senior investment strategist at BMO Global Asset Management.

The telecommunications index .SPLRCL was the lone laggard, down 0.25 percent.

Adams expects corporate profits to keep improving, which should help support stocks, but he points to several events that could jolt markets. The Nasdaq Composite Index gained 28.44 points, or 0.5%, to end at 6,149.67. Hong Kong's Hang Seng Index added 0.9%.

COMMODITIES: The price of gold rose $2.30 to settle at $1,230 per ounce, silver rose 20 cents to $16.60 per ounce and copper gained almost 2 cents to $2.54 per pound.

CURRENCIES: The euro rose to $1.0978 from $1.0924 late Friday.

Brent crude oil futures were higher by almost 3% after Russian Federation and Saudi Arabia said they are in favor of extending recent production cuts by the Organization of the Petroleum Exporting Countries (OPEC) for another nine months. The 2.7 percent rise in Cisco shares was also at least partly thanks to its security technology business. The dollar rose to 113.58 Japanese yen from 113.41 yen, and the pound rose to $1.2915 from $1.2879.

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