Oil climbs to $68.65 as stock market rebounds


The Nasdaq composite climbed 35.23 points, or 0.5 percent, to 6,950.34.

The energy index had the highest percentage gain among the S&P's 11 major sectors, adding 3.3 per cent as oil broke above US$70 a barrel.

US stocks climbed on Tuesday as investor concerns about rising trade tensions between the United States and China eased after Chinese President Xi Jinping promised to cut import tariffs.

AveXis stock rose 79 percent after Swiss drugmaker Novartis offered to buy the gene therapy company for $8.7 billion.

Bond prices fell. The yield on the 10-year Treasury rose to 2.83 percent.

Technology companies like Apple and Microsoft are bouncing back from their recent losses Monday, and banks are rising along with interest rates. Big banks such as JPMorgan Chase, Citigroup and Wells Fargo will kick off the earnings season with their results on Friday. While annual growth in average hourly earnings rose to 2.7 per cent, it stayed below the three per cent that economists estimate is needed to lift inflation toward the Federal Reserve's two-per cent target.

The Russell 2000 is down 21.05 points, or 1.4 percent.

But far bigger gains slipped away as the market suffered a steep afternoon decline.

Data showing a rise in USA core inflation for March - which was up 0.2 per cent and matched February's increase rise - failed to boost yields as headline consumer prices fell for the first time in 10 months.

Canada's main stock index rose on Tuesday, led by the energy and materials sectors as reduced fears of a global trade war boosted oil prices.

General Motors was up 1 percent after Morgan Stanley raised it to "overweight".

Stocks market analysts said following the gains in consumer and industrial goods stocks observed in yesterday's trading session, this presents attractive entry opportunities for investors.

At 9:48 a.m. EDT the Dow Jones industrial average was up 138.69 points, or 0.58 percent, at 24,071.45.

The S&P and the tech-heavy Nasdaq were up more than a percent, while the Dow gained 2 percent with 29 of its 30 components in the positive territory.

The S&P 500 .SPX was up 28.34 points, or 1.08 percent, at 2,641.5 and the Nasdaq Composite .IXIC was up 70.79 points, or 1.02 percent, at 7,021.14.US stocks will face a major test in coming weeks as first-quarter earnings pour in.