US stocks edged higher on Wednesday as a jump in crude oil prices boosted Exxon Mobil Corp and the energy sector, while an index showed consumer confidence rose to a four-month high.
The slightly higher finish helped both the blue chip Dow average and the broad Standard & Poor's 500 recover from Tuesday's declines, their biggest one-day drop in two months.
Exxon Mobil shares gained 0.7 percent to $56.25 on the New York Stock Exchange, helping support both the Dow and the S&P 500.
US February crude futures jumped $1.66 to settle at $59.82 amid expectations of a sharp draw in US crude and distillate stockpiles in the latest week, as well as a cut in Opec supply next year. Earlier, crude prices rose above $60 a barrel.
"The jump in oil prices lifted shares in the whole energy sector," said Tim Ghriskey, chief investment officer of Solaris Asset Management in Bedford Hills, New York. "And we also had very strong confidence numbers, which helped support the rest of the market." The Dow Jones industrial average was up 18.49 points, or 0.17 percent, to end at 10,796.26. The Standard & Poor's 500 Index was up 1.63 points, or 0.13 percent, at 1,258.17. The technology-laced Nasdaq Composite Index was up 2.05 points, or 0.09 percent, at 2,228.94.
Among heavily weighted Nasdaq 100 stocks, online marketplace eBay Inc rose 1.4 percent, or 62 cents, to $44.37 and contributed the most to the Nasdaq's gain. But the biggest drag came from shares of Apple Computer Inc, off 0.9 percent, or 66 cents, at $73.57. That reversed Tuesday's gains for Apple, whose iPod digital music player was a top holiday seller.
Early in the session, Wall Street got some welcome news about how consumers view the US economy. The Conference Board's index of consumer sentiment rose in December to 103.6 from a November reading of 98.3. The level was the highest since August, before Hurricane Katrina and before a surge in oil prices. Economists had expected the index to rise to 101.8.
Industrial conglomerate 3M Co was the Dow's best performer and rose 1.1 percent, or 82 cents, to $78.20.
In addition to 3M and Exxon Mobil, other major gainers in the Dow included insurer American International Group, up 0.7 percent, or 46 cents, at $68.41; US jet maker and defence contractor Boeing Co, up 0.6 percent, or 43 cents, at $70.96; chemical maker DuPont Co, up 0.6 percent, or 24 cents, at $43.26, and the world's largest retailer, Wal-Mart Stores Inc, up 0.2 percent, or 11 cents, to $47.84.
The rise in oil prices also lifted shares of Chevron Corp, up 1.5 percent, or 81 cents, at $56.70, and ConocoPhillips, up 1.4 percent, or 79 cents, at $58.29.
An index of oil and natural gas producers' shares rose 1.6 percent.
Still, lingering concern over the economy after Tuesday's Treasury yield curve inversion kept gains in check, analysts said.
Volume on the New York Stock Exchange was moderate, with about 1.06 billion shares changing hands, well below last year's daily average of 1.46 billion shares. On Nasdaq, about 1.23 billion shares traded, also sharply below last year's daily average of 1.81 billion.
Advancing shares beat decliners by a ratio of about 7 to 4 on the NYSE, while on Nasdaq, gainers outnumbered decliners by a ratio of about 8 to 7.