Wall Street: Monday open
US STOCKS rose sharply after the open as investors welcomed a dip in the price of oil and warmed to the possibility of a rate cut by the European Central Bank later this week.
The European Central Bank's policymakers are set to meet on Thursday, with a rising number of economists predicting a cut in interest rates. US investors would welcome a cut, which would help pick up the pace of European economic recovery but likely lower the value of the euro.
The continued slide in the price of oil pleased stock investors further. Members of OPEC are set to decide this week whether to carry out a plan to cut output by 1 million barrels per day, due to start on Thursday. Doubts that the cut would take place have dragged oil futures down to 4-week lows.
By early morning, the Dow Jones industrial average was up 101.99 points at 10,314.96. The technology-focused Nasdaq Composite Index was up 30.98 points at 1,991.00.
The Dow was led higher by Citigroup after Prudential Equity Group raised its rating on the financial services giant to 'overweight' from 'neutral'.
Shares of computer maker Hewlett-Packard rose strongly after a Barron's article at the weekend said the company was on a path to post-merger success. Its shares rose 77 cents to $23.11.
Harley-Davidson edged up $1.88 to $53.13 after another article in Barron's said the motorcycle maker's stock may be poised to rise as the economy strengthens.
