While you were sleeping: US equities, oil rise

Wall Street mostly extended recent gains amid continued optimism the global economy will be supported by central banks around the world.

In afternoon trading in New York, the Dow Jones Industrial Average slipped 0.09 percent. The Standard & Poor's 500 Index rose 0.19 percent, while the Nasdaq Composite Index climbed 0.66 percent.

In the Dow, slides in shares of Verizon and those of AT&T, each down 1.7 percent, outweighed gains in shares of Intel and Walt Disney, up 2.2 percent and 1.6 percent respectively.

Shares of Verizon fell after Citigroup downgraded the stock to neutral, from buy, in a note to investors on Monday.

Both the Dow and the S&P 500 are trading near record highs amid optimism about the strength in the US economy and the commitment of central banks in China and Europe about bolstering their respective economies.

"The US economy is very solid, and we're also starting to see signs that the worst is behind us for Europe," Allan von Mehren, chief analyst at Danske Bank in Copenhagen, told Bloomberg News. "Investors are starting to position for a global recovery in the first half of next year."

To be sure, Markit's preliminary seasonally adjusted US Services PMI business activity index slipped to 56.3 in November, down from 57.1 in the previous month and the lowest reading since April.

"A fifth-consecutive monthly slowing in growth in the service sector adds to signs that the economic upturn has lost considerable momentum, though it's important to note that the pace of expansion remains robust by historical standards," Chris Williamson, chief economist at Markit, said in a statement.

"After the manufacturing PMI showed factory output growth slowing in November to the lowest since January, the weaker pace of service sector expansion puts the economy on course to grow at a 2.5 percent annualised rate at best in the fourth quarter," according to Williamson. "With extreme weather hitting parts of the country, growth could slow even further."

Unexpectedly heavy snow, in particular, blanketed parts of New York state last week, shutting businesses for several days.

In Europe, the Stoxx 600 ended the day with a 0.1 percent advance. France's CAC 40 rose 0.5 percent. The UK's FTSE 100 Index slid 0.3 percent.

Germany's DAX Index added 0.5 percent after a report showing the country's business confidence increased in November for the first time in seven months. The Ifo institute's business climate index rose to 104.7, up from 103.2 in October.

Oil rose ahead of an OPEC meeting this week as investors tried to gauge the likelihood the group will decide to cut production to help prices recover.

"Whether they are going to cut is up in the air," Paul Crovo, a Philadelphia-based oil analyst at PNC Capital Advisors, told Bloomberg NEws. "I won't make big bets either way. There is a lot of expectation that OPEC does need to cut. That's the perception, and it's going to drive the market."

(BusinessDesk)