US energy stocks rose on Monday as crude prices extended a string of record highs, nearing $64 a barrel, on concerns over oil supply. As the energy sector surged, the three major US stock indexes trimmed gains to trade little changed.
The Dow Jones industrial average was up 8.04 points, or 0.08 percent at 10,566.91. The Standard & Poor's 500 index was up 1.25 points, or 0.12 percent, at 1,227.96 and the technology-laced Nasdaq Composite Index was down 4.68 points, or 0.21 percent, at 2,173.45.
Exxon Mobil Corp, the world's largest publicly traded company, and rival energy companies Chevron Corp and ConocoPhillips were among the top gainers in the S&P 500 index.
US crude oil for September delivery rose $1.54 to a record $63.85 a barrel on the New York Mercantile Exchange on renewed supply worries after US refinery outages and security concerns in the Middle East. The price touched $63.99 before slipping and was the highest since the contract started trading in 1983.
"The perception is that US growth will remain solid even as energy prices reach new records," said Subodh Kumar, chief investment strategist at CIBC World Markets in Toronto.
Exxon shares, the top S&P mover, gained 2.15 percent to $59.36, followed by a 2.7 percent rise in Chevron to $61.95. Shares of ConocoPhillips rose 2.3 percent to $65.20.
Shares in discount broker E-Trade Financial Corp surged 10.3 percent to $16.39 after the company agreed to buy the online brokerage Harrisdirect from BMO Financial Group for $700 million. In other acquisition news, Whirlpool Corp, the US largest appliance maker, sweetened its offer for Maytag Corp to $1.6 billion, or $20 per share. Whirlpool rose 3.3 percent to $82.45 and Maytag soared 10 percent to $18.68.
McDonald's Corp rose after the company said it posted a stronger-than-expected 4.9 percent gain in global July sales. McDonald's, a Dow component, rose 2.9 percent to $32.20.
Demand for stocks was tempered by expectations of higher interest rates, which may slow economic growth and hurt companies' profits in the third and fourth quarters, market analysts said. The Federal Reserve is expected to raise the benchmark lending rate for a 10th time on Tuesday by 25 basis points to 3.5 percent.
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