USA stocks poised for solid gains

USA stocks were only slightly higher in mid-day trading Monday, as a rebound earlier in the day fizzled. Oil prices are lower again today, briefly dipping below $34 per barrel, with the January contract on pace for a new six-year low. The Nasdaq composite gained 46 points, or 0.9 percent, to close at 4,962.

The Dow Jones Industrial Average rose 123.07 points, or 0.72 percent, to 17,251.62.

Overseas, European equities decreased broadly on Monday, with Germany’s benchmark DAX index at the Frankfurt Stock Exchange going down 1.04 percent, as the weakness in oil prices continued to trouble investors. Tokyo’s Nikkei 225 shed 0.4 percent to 18,916.02, while Bangkok and Singapore also declined. All were up between 1.0 and 1.6 percent.

Juniper Networks (JNPR.N) was down 4.5 percent at $27.38 after Reuters reported that the USA government was investigating a possible back door in the networking equipment maker’s code. Spanish stocks fell sharply after an election saw the ruling party lose its overall majority amid a groundswell of support for two upstart parties. On Friday, U.S. stocks plunged as many traders booked profits accumulated when the Fed finally ended the uncertainty over its intentions. Newfield Exploration was down 5 percent and ConocoPhillips fell 2 percent. Brent crude, used to price global oils, lost 40 cents to $36.48 per barrel in London.

Disney was down 1.7 percent despite reporting that “Star Wars: The Force Awakens” generated an estimated $238 million in U.S. and Canadian box office sales, shattering the previous opening-weekend record by about $30 million. Stocks have seen wide swings in recent weeks as investors braced for the Fed’s plan to increase rates for the first time in almost a decade, announced last Wednesday.

But stocks often recover somewhat after sharp sell-offs, so Monday’s buying is partly a recovery from last week’s drop.

Trading volumes were expected to be light for the rest of the week, with stock markets operating a shortened session on Thursday and closing on Friday for Christmas. The dollar fell against the euro to $1.0919 while the dollar was mostly unchanged against the yen at $121.01.

With the trading week curtailed in much of the world because of Christmas, moves in the market can be more pronounced than usual.