US stocks rose on Monday as the positive impact of a sharp drop in crude oil prices offset concern about weaker-than-expected sales at Wal-Mart Stores Inc. A jump in shares of American Power Conversion boosted the Nasdaq after a French company said it had agreed to buy the electronics systems maker.
Wal-Mart shares fell 2.6 percent to $49.42 on the New York Stock Exchange. The world's largest retailer blamed the lower growth on disappointing apparel demand and disruption from store remodelling projects.
"Investors are enthusiastic about the drop in oil prices," said Joseph Battipaglia, chief investment officer for Ryan, Beck & Co, brokerage and research firm. "It provides a buying incentive."
The Dow Jones industrial average was up 16.81 points, or 0.14 percent, at 12,107.07. The Standard & Poor's 500 Index was up 3.09 points, or 0.22 percent, at 1,380.43. The Nasdaq Composite Index was up 17.67 points, or 0.75 percent, at 2,368.29.
Diminished concern over a threat to Saudi Arabia's oil and economic installations helped crude oil prices to fall, with December crude on the New York Mercantile Exchange down $2.30 at $58.45 a barrel.
Jet maker Boeing Co rose 1.4 percent to $80.85. Brazil's Gol airline said it increased its order for Boeing aircraft to 87 from 67. But US phone company Verizon Communications, another Dow component, fell after news its Internet subscriber growth disappointed some analysts. Verizon fell 4.2 percent to $37.23 on the NYSE.
American Power Conversion jumped more than 26 percent to $30.10 and gave the biggest lift to the Nasdaq 100 after French electrical engineering company Schneider Electric said it had agreed to buy American Power. Shares of Yahoo Inc gained 2.8 percent to $26.06 on the Nasdaq after Merrill Lynch raised its rating on the Internet media company.