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Stocks signal higher open as oil prices rise

Stocks signal higher open as oil prices rise

Wall Street took comfort from a rise in oil prices and headed toward a higher open Monday, though investors remained cautious as Israel continued its attack on Gaza for a third day.
Oil rose above $40 a barrel Monday after the conflict between Israel and Gaza's Hamas rulers raised tensions in the Middle East. Light, sweet crude rose $2.52 to $40.23 a barrel in premarket electronic trading on the New York Mercantile Exchange.
The advance in oil was welcome for some investors who have worried that plunging prices signaled a long and severe recession. Oil has fallen more than $100 from its peak of $147.27 a barrel on July 11 as a slowing economy curbed demand. While Monday's advance came amid unease in the Middle East, the increase helped oil companies, with Exxon Mobil Corp. shares up 1.5 percent in the premarket session.
Investors also digested a potential blow to dealmaking on Wall Street. On Sunday, Kuwait's government canceled its $17.4 billion K-Dow Petrochemicals joint venture with Dow Chemical Co., saying it was "very risky" because of the global financial crisis and low oil prices. The joint venture was set to begin Thursday.
Rohm & Haas Co. maintains that its proposed $15.3 billion takeover by Dow Chemical won't be affected by Dow's substantial loss of income from the venture. But investors punished shares in premarket trading, driving them down 19 percent to $51.25, compared with their Friday close of $63.56. Dow Chemical shares lost 6.2 percent.
Dow Jones industrial average futures rose 30, or 0.35 percent, to 8,502. Standard & Poor's 500 index futures rose 3.00, or 0.35 percent, to 871.90, while Nasdaq 100 index futures rose 7.50, or 0.63 percent, to 1,196.00.
Bond prices also rose. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 2.12 percent from 2.14 percent late Friday. The yield on the three-month T-bill, considered one of the safest investments, rose to 0.02 percent from 0.01 percent late Friday.
With little economic data due, the dollar was mixed against other major currencies. Gold prices rose.
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Updated : 2021-06-21 15:46 GMT+08:00