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


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* Oil surges as much as 4%; Energy top gainer among S&Psectors

* Disney up as MS sees higher Disney Plus subscriber growth

* Indexes up: Dow 0.42%, S&P 0.42%, Nasdaq 0.57% (Updates to early afternoon)

By Shreyashi Sanyal

June 13 (Reuters) - U.S. stocks continued to gain onThursday after two days of declines, as energy shares turnedattractive after oil prices rose sharply on concerns of supplydisruption following suspected attacks on two tankers in theGulf of Oman. Crude prices rose as much as 4%, a day after hittingfive-month lows, after the attacks near Iran and the Strait ofHormuz, through which a fifth of global oil consumption passes. urn:newsml:reuters.com:*:nL4N23K1S2

The S&P energy index .SPNY jumped 1.18%, the most amongthe 11 major S&P sectors. Shares of oil majors Exxon Mobil CorpXOM.N and Chevron CorpCVX.N rose 1% each.

"Chevron and Exxon Mobil were two of the session's betterperformers, as the markets continue to digest news of oil tankerblasts in the Gulf of Oman," said Connor Campbell, financialanalyst at Spreadex in London.

Offering the biggest boost to the S&P 500 index .SPX wasthe communication services sector .SPLRCL , which rose 1%.

Walt Disney CoDIS.N gained 3.89% and was the biggestcontributor to the sector after Morgan Stanley raised itsforecast for Disney Plus subscriber growth.

Stocks have had a strong start to the month on hopes theFederal Reserve will act to counter a slowing global economy dueto the escalating trade war with China, helping the benchmarkS&P 500 index climb 5% so far in June.

However, investors stayed cautious ahead of a meeting of theFederal Reserve policymakers and the G20 summit. Markets areanticipating an interest rate cut after U.S. consumer pricesdata on Wednesday pointed to a moderate rise in inflation.

The Fed will meet on June 18-19 and markets have priced inat least three rate cuts in 2019.

Meanwhile , on the trade front, there were doubts of anyimprovement in what President Donald Trump called "testy" traderelations with China in the run up to the G20 summit later inthis month.

"The sentiment around trade talks is generally more dire. Ithink you're going to see the Fed being very tempered on ratecuts and we're going to see these muted gains as we gauge howsevere the economic downturn is," said Matt Lloyd, chiefinvestment officer at Advisors Asset Management in Monument,Colorado.

At 12:57 p.m. ET the Dow Jones Industrial Average .DJI wasup 109.01 points, or 0.42%, at 26,113.84, the S&P 500 was up12.20 points, or 0.42%, at 2,892.04 and the Nasdaq Composite .IXIC was up 44.25 points, or 0.57%, at 7,836.97.

Also boosting the indexes were gains in marquee companiesFacebook Inc FB.O , Apple IncAAPL.O , Amazon.com IncAMZN.O , Microsoft CorpMSFT.O and Alphabet IncGOOGL.O ,which rose between 0.3% and 1.3%.

Twitter Inc shares TWTR.N fell 4.16%, the most among S&P500 companies, after brokerage Moffett Nathanson said it expectsthe social media company's costs to rise and revenue growth toslow.

Advancing issues outnumbered decliners by a 2.67-to-1 ratioon the NYSE and by a 2.41-to-1 ratio on the Nasdaq.

The S&P index recorded 27 new 52-week highs and one new low,while the Nasdaq recorded 45 new highs and 54 new lows. (Reporting by Shreyashi Sanyal and Aparajita Saxena inBengaluru; Editing by Arun Koyyur) ((Shreyashi.Sanyal@thomsonreuters.com; +1 646 223 8780 ;Reuters Messaging:Shreyashi.Sanyal.thomsonreuters.com@reuters.net))






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



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