US stocks gained on Tuesday as crude oil prices boosted shares of energy companies including Exxon Mobil Corp and Wal-Mart Stores Inc's stronger-than-expected earnings raised optimism about consumer spending.
Exxon shares rose more than 2 percent while Chevron Corp climbed almost 2 percent after the latter oil company debuted as a new component of the Dow Jones industrial average.
Oil prices climbed nearly 4 percent to $99.50 a barrel. "Energy and mining stocks are very strong. Oil is up ($4) a barrel right now, and Europe and Asian markets were up quite a bit," said Al Goldman, chief market strategist at A.G. Edwards in St. Louis.
Home-builder stocks also edged higher after a report showed the US industry's sentiment improved unexpectedly in February. The Dow Jones Home Builder index .D gained 2.2 percent. The Dow Jones industrial average was up 96.39 points, or 0.78 percent, at 12,444.60. The Standard & Poor's 500 Index was up 1.13 points, or 0.08 percent, at 1,349.99. The Nasdaq Composite Index was down 10.74 points, or 0.46 percent, at 2,321.80.
Wal-Mart shares inched up 0.9 percent to $49.86. Wal-Mart, the world's biggest retailer, reported quarterly results that topped analysts' expectations as cost-conscious consumers shopped for discounted goods at the world's biggest retailer. Exxon shares rose to $87.42, while Chevron climbed to $85.19.
US crude for March delivery jumped sharply on supply concerns following Monday's Texas refinery fire, concerns about supply from Venezuela, Nigeria and Russia, cold US weather and expectations that Opec will not increase production at its March meeting. Futures hit a record $100.09 on January 3.
On the Nasdaq, shares of Microsoft Corp gained 1 percent to $28.58 following a report by the New York Times saying the software maker will authorise a proxy fight at Yahoo Inc to press ahead with its take-over battle for the Internet media company. But even with the gains, the stock market was well off its best levels seen right after the open. Lingering concerns about the profit outlook for financial services companies and fears of more write-downs pressured shares of banks and others.