Oil prices send US shares higher

  • 7 October 2015
  • From the section Business
NYSE trader Image copyright AP

(Open): Shares on Wall Street opened sharply higher on the back of stronger oil prices.

The Dow Jones Industrial Average jumped 82.71 points, or 0.49%, to 16,872.9.

The price of oil, measured by the Brent crude benchmark, was up at $52.73, a rise of just over 0.8%.

All the other main US indexes made similar gains. The S&P 500 rose 9.96 points, or 0.5%, to 1,989.88, while the Nasdaq added 25.80 points, or 0.54%, to 4,774.16.

The oil company Chevron Group was the biggest gainer on the Dow in early trading, rising 1.7%.

The construction equipment maker Caterpillar continued its recent recovery, rising 1.9% to above $72. However, the company's share price has fallen from about $115 since the beginning of the year, as it has retrenched and cut its workforce.

The biggest loser on the wider S&P500 was Yum Brands, the owner of KFC and Taco Bell. Its shares fell 18% after it lowered its full-year earnings forecasts, saying it had been hit by slow growth in China and the strength of the dollar.