U.S. Stocks Begin Higher, With Crude's Climb Boosting Energy

NEW YORK (MarketWatch) -- U.S. stocks traded higher to start Tuesday, led by a rally in energy shares as crude-oil futures jumped above $50 a barrel and as investors digested a new round of data that could show signs of moderation in the nation's economic decline.

The early move higher came ahead of a slew of economic reports, including separate data on factory orders and pending home sales for November, as well as the Institute of Supply Management's non-manufacturing index for December.

"Early signs of healing in housing are a key sign that the pressure on the economy and markets may begin to abate," said Jeffrey Kleintop, chief market strategist, LPL Financial.

The Dow Jones Industrial Average added 49.62 points to stand at 8,003.71, with seven of its 30 components up in early trade.

Energy and financial shares led the broad-market gains that included all 10 of the S&P's 10 industry groups.

The S&P 500 climbed 8.06 points to 935.51, and the Nasdaq Composite rose 13.84 points to 16,41.87.

Later, at 2 p.m. Eastern, minutes from the Federal Reserve's mid-December policy-setting meeting are slated for release.

An early glimpse of the recession's toll on consumer spending came from the International Council of Shopping Centers and Goldman Sachs, which said chain-store sales fell 0.8% last week from the year-ago period.

Oil futures climbed $1.2 to $50.01 a barrel as convictions grew that the OPEC cartel would successfully put production cuts into effect and amid heightened tensions in the Middle East as Israeli attacks on Hamas targets in the Gaza Strip entered an 11th day. .

On the corporate front, Dow Chemical Co. said it would pursue legal action against Kuwait's Petrochemical Industries Inc. over the unraveling of a joint venture. Shares of Dow Chemical gained 3% in the early going. .

In another illustration of the global recession, Switzerland's Logitech International SA withdrew its financial targets for the year, and said it would cut its workforce by 15%. The maker of computer mouses also cautioned of a worsening economic climate ahead. .

In Asia, shares of Japanese and South Korean automakers advanced. .

Pharmaceutical firms led equities higher in Europe. .

U.S. equities on Monday declined to bring to an end a three-session winning streak, with the Dow shedding 81.8 points to 8,952.89, off nearly 37% from its record close hit on Oct. 9, 2007. The S&P 500 and the Nasdaq Composite both gave up 4 points.

By Kate Gibson