U.S. stocks traded higher Monday, led by energy stocks, as oil prices climbed on renewed optimism that OPEC was closing in on a deal to cut production. The Dow Jones industrial average rose 23 points, with IBM contributing the most gains. The S&P 500 advanced 0.3 percent, trading around its record close of 2,190.15, as energy gained more than 2 percent. The Nasdaq composite advanced 0.3 percent, hitting a new record high. The Russell 2000 and the S&P Mid Cap 400 indexes, which track small and mid cap stocks, respectively, also hit record highs. "I think oil, and commodities in general, are leading the way for stocks," said Peter Cardillo, chief market economist at First Standard Financial. He also said that crude prices received a boost from a weaker dollar. U.S. crude for December delivery traded 3.11 percent higher at $47.11 per barrel as of 10:33 a.m. ET. The U.S. dollar index, which surged 2.24 percent last week to its highest level since 2003, traded 0.34 percent lower, around 100.87. That said, Randy Frederick, vice president of trading and derivatives at Charles Schwab, said he expects oil prices to hold in a range roughly between $40 and $50 per barrel. "We've got high supply and slow-growing demand," he said. "Any deal between OPEC would be shaky, as we've seen." There were no major economic reports due Monday. However, Federal Reserve Vice Chairman Stanley Fischer delivered remarks abouthow fiscal policy can help boost productivity and, in turn, lower the burden of supporting the economy on the central bank. "Certain fiscal policies, particularly those that increase productivity, can increase the potential of the economy and help confront some of our longer-term economic challenges," Fischer said. The prospects of fiscal stimulus have risen sharply since Nov. 8, when Republican Donald Trump stunned the world by winning the U.S. presidential election. Investors and traders were quick to adjust positions, shifting large amounts of assets into sectors that would benefit from fiscal spending. They also piled into financials on hopes for deregulation within the sector. Since Nov. 8, U.S. equities have seen a surge into record or near-record levels. But Stephen Wood, chief market strategist at Russell Investments, said a number of factors prior to the election primed the market to reach these levels. "We saw improvement in the inflation data, jobs and wages data and those factors sort of coalesced" with improving earnings, he said. Later this week, which will be shortened by the Thanksgiving holiday on Thursday, the Fed is scheduled to release the minutes of its November meeting. That said, Schwab's Frederick said the minutes are likely to have little impact on the market since the odds of a rate hike next month are so high. According to the CME Group's FedWatch tool, market expectations for a December rate increase were more than 95 percent. Frederick also said he expects stocks to trade in a sideways pattern this week, given the holiday. "Traditionally, any holiday week is usually a low-volume week," he said. In corporate news, Tyson Foods shares plunged more than 15 percent, after the firm reported weaker-than-expected quarterly results. Overseas, European stocks mostly rose, with the pan-European Stoxx 600 index gaining 0.27 percent. In Asia, stocks closed mixed, with the Korean Kospi falling 0.43 percent and the Shanghai composite gaining 0.79 percent. Source: CNBC
