NEW YORK (Reuters) - U.S. stocks ended Monday’s session higher, rebounding from last week’s big slide as investors piled into technology shares before Apple’s (AAPL.O) earnings, while the dollar also recovered from record lows against the euro and oil prices retreated from record highs.
Crude fell sharply toward $87 a barrel as part of a broad-based commodities sell-off on concerns about the U.S. economy’s health and a recovery in the U.S. dollar.
The greenback rebounded from record lows, but Treasuries were unable to extend last week’s rally because of profit-taking and the stock market’s advance.
Tech stocks emerged largely unscathed from a dramatic sell-off on Wall Street late last week, spurred by fear about a contracting economy.
The Nasdaq Composite Index .IXIC gained 28.77 points, or 1.06 percent, to close at 2,753.93. Apple's shares jumped 2.3 percent to $174.36 ahead of its quarterly earnings announcement after the closing bell.
In electronic trading after hours, Apple’s shares surged more than 5 percent to $184 after the computer and iPod maker reported results exceeding Wall Street’s estimates.
Technology stocks, along with the health-care sector, are seen as posting the biggest year-over-year earnings growth in the third quarter, according to Reuters Estimates.
But concerns about other industries remained, after Lehman Brothers downgraded companies in the mortgage finance sector, hurting such stocks as Countrywide Financial CFC.N.
On Nasdaq, “it’s really a few big-cap names attracting all the momentum players,” said Michael Metz, chief investment strategist at Oppenheimer & Co, in New York.
The Dow Jones industrial average .DJI was up 44.95 points, or 0.33 percent, to end at 13,566.97. On Friday the Dow industrials lost nearly 367 points on the 20th anniversary of the 1987 market crash.
The Standard & Poor's 500 Index .SPX was up 5.70 points, or 0.38 percent, at 1,506.33.
In Europe, the FTSEurofirst 300 .FTEU3 index of top European shares closed down 1.29 percent at 1,543.66.
Japan's Nikkei .N225 average tumbled 2.24 percent, or 375.90 points, to end at 16,438,47, a four-week closing low. The Nikkei was hurt by the yen's strength and nervousness about the U.S. economy following Wall Street's steep slide on Friday.
Dealers said the dollar’s rebound from a record low against the euro alongside sliding world markets was encouraging selling in the energy and metals futures markets.
U.S. crude oil fell $1.04, or 1.2 percent, to settle at $87.56 per barrel on the New York Mercantile Exchange. That was above the NYMEX session’s low, but below the record of $90.07 hit on Friday.
Spot gold prices fell $11.90, or 1.56 percent, to $752.90. Most-active December gold on the COMEX division of the New York Mercantile Exchange dropped $8.40, or 1.1 percent, to settle at $760.00 an ounce.
The dollar rose on Monday as traders pared back bets against the currency after the weekend’s Group of Seven meeting yielded no call to action on the falling greenback. Investors are now betting its decline may have gone too far, too fast.
The dollar shot up against a basket of major trading-partner currencies, with the U.S. Dollar Index up 1.09 percent at 78.029 from a previous session close of 77.188.
The euro was down 1.03 percent at $1.4157 from a previous session close of $1.4304. But against the Japanese yen, the dollar was down 0.15 percent at 114.30 yen from a previous session close of 114.50.
U.S. Treasury bonds were unable to extend last week’s rally, which was based on growing expectations that a softening economy will force the Federal Reserve to cut interest rates again at the end of this month. Investors have been harvesting profits after last week’s gains.
The benchmark 10-year U.S. Treasury note was down 3/32, with the yield at 4.41 percent, up from 4.40 percent late on Friday. The 2-year U.S. Treasury note was down 3/32, with the yield at 3.85 percent, up from 3.79 percent late on Friday.
But the 30-year U.S. Treasury bond was up 2/32, with the yield at 4.69 percent, steady with its level late on Friday.
Additional reporting by Jennifer Coogan, Richard Leong, Lucia Mutikani, Robert Gibbons, Gene Ramos and Frank Tang in New York, Peter Starck in Frankfurt and Elaine Lies in Tokyo