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US STOCKS-Wall St climbs as oil jumps after Gulf tanker attacks


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* Oil surges, top percentage gainer among S&P sectors

* Twitter drops as brokerage forecasts rising costs

By Caroline Valetkevitch

NEW YORK, June 13 (Reuters) - U.S. stocks rose on Thursdayafter two days of declines, as energy shares rebounded with oilon concerns of a supply disruption following attacks on twotankers in the Gulf of Oman.

U.S. Secretary of State Mike Pompeo said the United Stateshas assessed that Iran is responsible for the attacks, whichoccurred near Iran and the Strait of Hormuz, through which afifth of global oil consumption passes. urn:newsml:reuters.com:*:nL4N23K1S2urn:newsml:reuters.com:*:nL2N23K18H

Oil futures settled more than 2% higher, while the S&P 500energy index .SPNY gained 1.3%, the most of the 11 majorsectors.

"We're meandering here with strength in the oil sectorbecause that's where the market-moving news is today," saidBucky Hellwig, senior vice president at BB&T Wealth Managementin Birmingham, Alabama.

While the gains in energy shares helped the market, thetanker attacks added to potential worries for investors.

"There are still concerns over geopolitical risk," saidQuincy Krosby, chief market strategist at Prudential Financialin Newark, New Jersey.

Stocks have had a strong run in June so far on hopes theFederal Reserve will act to counter a slowing global economy dueto the escalating trade war with China. The benchmark S&P 500index is up about 5% so far for the month.

But caution ahead of the Fed meeting next week and the Groupof 20 summit at the end of the month limited the day's advance.Markets have been anticipating an interest rate cut at somepoint this year.

"The market is waiting to hear from the Fed... and whetherthey will deviate at all from their latest stance - and I callit an active dovish position - and to see if they continue tolay the groundwork for a rate cut perhaps later in the summer,"Krosby said.

The Dow Jones Industrial Average .DJI rose 101.94 points,or 0.39%, to 26,106.77, the S&P 500 .SPX gained 11.8 points,or 0.41%, to 2,891.64 and the Nasdaq Composite .IXIC added44.41 points, or 0.57%, to 7,837.13.

Walt Disney CoDIS.N shares gained 4.4%, giving the S&P500 its biggest boost, after Morgan Stanley raised its forecastfor Disney Plus subscriber growth.

On the trade front, there were doubts of any improvement inwhat President Donald Trump called "testy" trade relations withChina in the run-up to the G20.

Several companies including furniture chain RHRH.N citedthe potential impact of higher tariffs on their businesses inreports after the bell Wednesday, though RH said it has takensteps to mitigate the impact of tariffs and raised its outlookfor the year.

Twitter Inc shares TWTR.N fell 3.1% after brokerageMoffett Nathanson said it expects the social media company'scosts to rise and revenue growth to slow.

Advancing issues outnumbered declining ones on the NYSE by a2.66-to-1 ratio; on Nasdaq, a 2.23-to-1 ratio favored advancers.

The S&P 500 posted 31 new 52-week highs and one new low; theNasdaq Composite recorded 58 new highs and 64 new lows.

Volume on U.S. exchanges was 5.99 billion shares, comparedto the 6.87 billion average for the full session over the last20 trading days. (Reporting by Caroline ValetkevitchAdditional reporting by Shreyashi Sanyal and Aparajita Saxena inBengaluruEditing by Leslie Adler) ((caroline.valetkevitch@thomsonreuters.com; +1-646-223-6393;Reuters Messaging:caroline.valetkevitch.thomsonreuters.com@reuters.net))






This article appears in: World Markets , US Markets , Oil , Stocks
Referenced Symbols: DIS ,



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