Wall Street stocks rose on Monday as investors bet that the US economy will avoid sinking into a recession, boosting growth-sensitive sectors such as transport and technology. Shares of energy companies, including Exxon Mobil Corp, were boosted by high oil prices. Oil futures traded at $126.24 per barrel, just short of Friday's record of $127.82.
Investors snapped up technology shares on hopes that business spending will hold up, with shares of Oracle Corp, the world's second-largest software maker, up 3.9 percent and among the top advancers on the Nasdaq.
The Dow Jones transportation average rose to a record high, led by Union Pacific. Shares of economic bellwethers like Caterpillar Inc and Honeywell also climbed. Data in recent days has suggested the economy is likely to avoid a debilitating recession. On Monday, the Conference Board, a private business research group, said its Leading Economic Indicators index rose 0.1 percent in April, the same as in March.
"It is a bigger picture theme today, with the resilience of equities continuing even in the face of high oil prices," said Michael James, senior trader at regional investment bank Wedbush Morgan in Los Angeles.
The Dow Jones industrial average was up 121.31 points, or 0.93 percent, at 13,108.11. The Standard & Poor's 500 Index was up 11.62 points, or 0.82 percent, at 1,436.97. The Nasdaq Composite Index was up 16.22 points, or 0.64 percent, at 2,545.07. Shares of Amazon.com Inc shot up 9.2 percent to $83.50 after Goldman Sachs raised its price target on the stock and added the Internet retailer to its "Americas conviction buy" list.
Goldman also raised the US semiconductor sector to "attractive" from "neutral" according to theflyonthewall.com. An index of semiconductor stocks was up 0.3 percent.
Honeywell International Inc, the world's leading maker of cockpit electronics, shares rose 1.4 percent to $62.67 after it reaffirmed its sales and profit forecasts for the year and said US economic weakness has had minimal impact on its businesses. Caterpillar shares rose 2 percent to $85.35.
Union Pacific shares rose 2.8 percent to $157.36 after Stifel recommended investors buy the railroad's stock, according to theflyonthewall.com. Exxon shares rose 1.3 percent to $93.88, helping drive the S&P 500 above its 200-day moving average, a key trend measure, for the first time since late December.
Chevron Corp gained 1.8 percent to $102.22. Oracle shares rose 3.7 percent to 22.48 on the Nasdaq, a day after financial weekly Barron's said the stock was poised to resume its long-term ascent after stagnating this year. Lowe's Companies shares dropped 2.4 percent to $24.29 on the NYSE after the second-largest US home improvement chain posted a drop in quarterly profit and slashed its full-year outlook.