ARNC Arconic Corporation

By Victor Reklaitis, MarketWatch , Ryan Vlastelica

Mylan also rallies, but Twitter, Dover Corp. among the day's big decliners

U.S. stocks climbed Monday, lifted by energy shares as hopes grew that OPEC would reach a deal to cut production, a move seen as necessary for addressing oversupply in the oil market.

The day's gains were broad, with all but one of the S&P 500's sectors trading in positive territory.

The Dow Jones Industrial Average jumped 102 points, or 0.6% to 18,343. A nearly 2% jump in shares of Apple Inc. (AAPL) led blue-chip advancers in afternoon trade, while Wal-Mart Stores Inc., down 1.3%, weighed on the Dow.

The S&P 500 index climbed about 12 points, or 0.5%, at 2,165. Only consumer-staples shares were trading in the red among the S&P 500's 11 main sectors.

The S&P energy sector surged 1.5% after Saudi Arabia's energy minister, Khalid al-Falih, said he was optimistic (http://www.marketwatch.com/story/not-unthinkable-for-oil-to-hit-60-this-year-says-saudi-energy-minister-2016-10-10) major oil producers could agree to cut production before year-end. He also said it wasn't "unthinkable" for crude to rise to $60 a barrel this year, though others said that oil bulls (http://www.marketwatch.com/story/what-youve-not-been-seeing-in-this-bull-market-illusion-2016-10-10) had gotten ahead of themselves.

Oil futures rose 3% to above $51 per barrel. A closely watched meeting of oil producers in Istanbul this week follows a convention of members of the Organization of the Petroleum Exporting Countries and non-OPEC countries in Algiers, where a tentative deal to cap production was struck.

"Oil is definitely front and center amid what seems to be a shift in the market," said Wayne Kaufman, chief market analyst at Phoenix Financial Services in New York. If countries do come together, "that's a big change, and one that would help our energy companies, which have been in a bad place, profit-wise. That's good for the market."

The Nasdaq Composite Index gained 42 points, or 0.8%, at 5,334, and the Nasdaq-100 index touched a fresh intraday trading record of 4,904.57.

Last week, the S&P 500 lost 0.7%, while the Dow shed 0.4%. Both snapped a three-week winning streak.

Investors also looked ahead to the coming earnings season (http://www.marketwatch.com/story/5-things-to-expect-this-earnings-season-2016-10-07), which will provide clarity into how U.S. companies are faring amid tepid international growth and ahead of an expected interest-rate increase by the Federal Reserve. Companies in the S&P 500 are expected to extend their earnings recession to a sixth-straight quarter, according to FactSet data, though sales are predicted to break their six-quarter streak of declines.

While investors and analysts have long expected another quarter of contracting profits, results that miss a lowered bar of expectations could hit a market that continues to trade near record levels. The season unofficially begins Tuesday afternoon, when Alcoa Inc. (AA) reports. The giant aluminum maker is presenting its last quarterly earnings report as a single company (http://www.marketwatch.com/story/alcoa-to-release-last-earnings-before-it-splits-up-2016-10-10), as it plans to split in two on Nov. 1.

"If earnings don't go up, the market will be relying on multiple expansion at a time when interest rates are going higher--that's not going to work," Kaufman said. "If we're going to see stocks go up, then we need to see the earnings picture improve dramatically."

Economic news: There are no top-tier U.S. economic releases due to hit on Monday, as government workers get a holiday for Columbus Day.

In Federal Reserve news, Chicago Fed President Charles Evans is scheduled to deliver a speech in Australia at about 9:30 p.m. Eastern Time.

Corporate movers: In corporate news, Mylan NV(MYL) jumped 8.6% following news of a settlement (http://www.marketwatch.com/story/mylan-shares-surge-on-epipen-settlement-news-2016-10-07) in the company's EpiPen pricing controversy. The stock was the biggest percentage gainer among S&P 500 components.

On the downside, Twitter Inc.(TWTR) sank 13% after a Bloomberg report over the weekend suggested the social media company won't attract any takeover bids (https://www.bloomberg.com/news/articles/2016-10-08/twitter-sales-process-said-almost-dead-as-suitors-lose-interest).

Dover Corp.(DOV) dropped 6.8% after the maker of gear for the energy, engineered systems and refrigeration industries cut its profit and sales outlook for the year (http://www.marketwatch.com/story/dover-cuts-earnings-and-revenue-outlook-2016-10-10).

U.S.-listed shares of Royal Bank of Scotland PLC(RBS.LN) (RBS.LN) fell 2% in the wake of reports showing the bank pushed businesses into default (http://www.marketwatch.com/story/rbs-shares-fall-on-report-showing-bank-pushed-businesses-into-default-2016-10-10).

In deal news, Noble Group Ltd.(NBL) said it has signed a $1 billion dea (http://www.marketwatch.com/story/calpine-buys-nobles-us-energy-business-for-1-billion-2016-10-09)l with Calpine Corp.(CPN) to sell its U.S. energy unit to the power generation giant. Shares of Noble rose 2.1%.

Other markets: Gold futures rose 0.7%. European stocks closed higher, while Asian markets mostly gained, though both Japan and Hong Kong were closed for a holiday. A key dollar index rose 0.2%.

The Mexican peso advanced against the dollar (http://www.marketwatch.com/story/mexican-peso-gains-after-2nd-presidential-debate-trump-video-fallout-2016-10-10) on Monday, with analysts saying the move signaled a belief that Donald Trump's chances of becoming president had fallen after a tumultuous weekend in which a 2005 video surfaced (http://www.marketwatch.com/story/trumps-lewd-comments-to-billy-bush-surface-in-recording-2016-10-07). In the video, Trump boasted of groping women and his sexual conquests, including pursuing a married woman.

The second presidential debate (http://www.marketwatch.com/story/donald-trump-hillary-clinton-trade-blows-in-heated-second-debate-2016-10-09) between Trump and Democratic nominee Hillary Clinton, which occurred Sunday night, wasn't seen as likely to change the odds of the election results.

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(END) Dow Jones Newswires

October 10, 2016 13:10 ET (17:10 GMT)

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