US stocks show modest gains after last-minute turnaround

Following an indecisive day on Wall Street, US stocks turned around in the last minutes of trading to end with modest gains.

Last week the market suffered its worst drop since mid-August, and for much of the day it looked like the losses would continue.

Near midday the Standard & Poor’s 500 index hit a two-month low. But oil prices recovered from last week’s rout and the broader market rose over the last hour of trading, finishing at its highest levels of the day.

The Dow Jones industrial average picked up 103.29 points, or 0.6%, to 17,358.50. The S&P 500 index gained 9.57 points, or 0.5%, to 2,021.94. Nine of the 10 sectors on the S&P 500 finished higher, though most of the gains were small. The Nasdaq composite index added 18.76 points, or 0.4%, to 4,952.23.

Early in the day the price of oil fell below $35 a barrel for the first time since early 2009. However, oil recovered and rose about 2%, breaking a streak of six straight losses.

US crude gained 69 cents at $36.39 a barrel in New York. Brent crude, a benchmark for international oils, fell a penny to $37.92 dollars a barrel in London.

The gain sent oil companies broadly higher. Exxon Mobil rose $1.69, or 2.3%, to $76.03 and Chevron added $2.89, or 3.3%, to $89.33 dollars.

Consumer products maker Jarden Brands agreed to be acquired by competitor Newell Rubbermaid. The cash and stock deal would create a conglomerate that owns brands like Paper Mate, Sharpie, Elmer’s, Rubbermaid and Calphalon.

The deal is worth at least $13.2 bn, or $60 per share. Jarden stock added $1.42, or 2.7%, to $54.09. Newell Rubbermaid shares fell $3.13, or 6.9%, to $42.15.

Natural gas prices plunged to the lowest level since September 2001 as warm weather continues to erode demand for home heating. The falling price hurt natural gas companies. Range Resources sank 89 cents, or 3.9%, to $21.86 and Southwestern Energy slumped 57 cents, or 9.7%, to $5.33.

Natural gas fell 9.6 cents, or 4.8%, to $1.89 per 1,000 cubic feet.

In other energy trading, wholesale gasoline declined 2.6 cents, or 2%, to $1.25 a gallon and heating oil lost 1.8 cents, or 1.6 percent, to $1.12 dollars a gallon.

Mining companies and industrial materials makers slumped, with Dow and DuPont leading the way. Copper miner Freeport-McMoRan dropped as copper prices continued to slide. Freeport shares skidded 44 cents, or 6.4%, to $6.46.

Gold sank $12.30, or 1.1%, to $1,063.40 an ounce. Silver declined 18.9 cents, or 1.4%, to $13.70 an ounce. The price of copper fell 0.5 cents to $2.11 dollars a pound.

The Federal Reserve will start its last meeting of the year on Tuesday, and on Wednesday it is expected to raise interest rates for the first time in almost a decade. The Fed’s key short-term interest rate has been close to zero since December 16 2008.

The boost in rates would be a sign of confidence in the US economy, but some investors worry that it will slow down growth.