Stocks Opened Higher, US Manufacturing Output Surged

U.S. stocks opened higher on Monday, rebounding from the worst weekly losses in years, as investor confidence appeared to have been boosted by a rebound in oil prices. The Dow Jones Industrial Average lately gained 79.05 points, or 0.46%, to 17,359.88. The S&P 500 was up 13.62 points, or 0.68%, to 2,015.95. The Nasdaq Composite added 30.99 points, or 0.67%, to 4,684.59.

U.S. manufacturing output recorded its largest increase in nine months in November as production expanded across the board, pointing to underlying strength in the economy. Factory production increased 1.1 percent last month after an upwardly revised 0.4 percent advance in October, the Federal Reserve said on Monday.

Pet supply retailer PetSmart has succumbed to calls from some shareholders for a sale with an agreement to be bought by a private equity consortium led by BC Partners for $8.7 billion, in the largest leveraged buyout of the year.

The Empire State manufacturing index, the first of the many regional manufacturing gauges to be released, fell to negative 3.6 in December from 10.2 in November, the New York Fed said Monday.

Oil’s stunning price collapse is undoubtedly one of 2014’s top stories and will remain a major theme for investors in 2015.Indeed, oil futures CLF5, +0.16% have plunged almost 41% from the beginning of the year, including carnage in Thursday trading that saw oil settle below $60, at $59.95.

Shares of Opko Health (OPK) soared 13% in premarket trade Monday, after the biopharmaceutical company announced an agreement with Pfizer Inc. PFE, +0.05% to develop its treatment for growth hormone deficiency.