Wall Street higher as modest impact seen from Paris attack

The fact the terror attacks took place late after USA markets had already closed Friday may have allowed for a less emotional response by investors. U.S.-traded crude oil rose 2.5% to $41.74 a barrel partly on concerns that violence in the Middle East could lead to oil-supply disruptions as the French government retaliates against Islamic State in the aftermath of the Paris attacks on Friday.

The Nasdaq Composite jumped 1.15 per cent to 4,984.62.

At 11:59 a.m. ET (1659 GMT), the Dow Jones industrial average was up 57.19 points, or 0.33 percent, at 17,302.43 and the S&P 500 was up 5.27 points, or 0.26 percent, at 2,028.31. Exxon’s shares rose 1.6 percent, while Chevron was up 2.1 percent. Marriott rose 1.04 percent to $73.50.

Dow e-minis 1YMc1 were up 16 points, or 0.09 percent, with 27,850 contracts changing hands.

“This will weaken its currency relative to the USA dollar and as a result we could see a few further headwinds for SPX”, said Ian Winer, director of equity trading at Wedbush Securities.

Cruise operator Carnival Corp fell 1.9 percent, while travel company Expedia was down 2 percent. Aeroports de Paris was down 3.7 per cent, while Deutsche Lufthansa and British Airways parent global Consolidated Airlines Group were down 2.3 per cent and 2.8 per cent, respectively.

“Short-term underperformers might be airlines, travel and luxury stocks which have benefited from Asian tourism to Europe”, said Ralf Zimmermann, equity strategist at Bankhaus Lampe.

In other corporate news, Marriott global said it has agreed to acquire Starwood Hotels & Resorts Worldwide in a deal worth $12.2 billion.

Elsewhere, Clovis Oncology shares lost more than two-thirds of their value after the FDA requested more clinical information relating to efficacy analysis for a lung cancer drug.

Since World War II, the US equity markets have been tested by all manner of shocks to the system, with most downturns seeing relatively speedy recoveries. USA stocks logged their largest weekly loss since August last week on the back of weak economic data and disappointing earnings from retailers such as Macy’s.

The three major USA stock indexes had opened with losses but soon turned around, with all closing more than 1 percent higher.

Investors remain focused on expectations that the U.S. Federal Reserve could hike interest rates in December for the first time in almost a decade, Brady said. Its loose monetary policy has boosted stocks in recent years.

Julie Wernau contributed to this article.