By Steve Gelsi
U.S. energy stocks rose in early action Monday as oil prices pushed above $53 a barrel on hopes of an economic recovery.
In the broad market, shares took flight on a rise in manufacturing activity in China, as well as a rise in U.S. construction spending and a 3.2% jump in pending home sales.
The Amex Oil Index (XOI) advanced 1.9% to 923. Component Valero Energy Corp. (VLO) climbed 3% to $21.27.
The Amex Natural Gas Index (XNG) added 3.5% to 471, with component Chesapeake Energy (CHK) up 3.8% to $21.68 ahead of its earnings update due out after the closing bell. Analysts expect the natural gas producer to earn 50 cents a share, according to a survey by FactSet Research.
The Philadelphia Oil Service Index (OSXX) rose 4.5% to 163, with component Halliburton (HAL) gaining 5% to $21.94.
Crude futures rose 31 cents to $53.70.
Among stocks in positive territory, Schlumberger (SLB) rose 5.3% to $53.35. The global oil services giant drew a positive mention in a Barron's article, which noted the company's stock could rise 20% to 25% in the next two years.
Marathon Oil (MRO) drew a downgrade to neutral from outperform at Credit Suisse. Shares dipped 6 cents to $30.78.
The Dow Jones Industrial Average (DJI) rose 148 points to 8,359. Component Exxon Mobil (XOM) rose 9 cents to $68.10. Chevron (CVX) rose 39 cents, or 0.6%, to $67.26.
-Steve Gelsi; 415-439-6400; AskNewswires@dowjones.com
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