Stocks Opened Higher as Oil Bounced

U.S. stocks opened higher on Tuesday as rising oil prices boosted energy shares. The Dow industrial Average lately gained 156.90 points, or 0.89%, to 17,862.81. The S&P 500 rose 15.43 points, or 0.75%, to 2,074.12. The Nasdaq Composite climbed 23.06 points, or 0.49%, to 4,773.27.

Oil rose on Tuesday, driven by supply disruptions in Canada and elsewhere that have knocked out 2.5 million barrels of daily production and temporarily eclipsed concern over high global inventories and a looming surplus of refined products. Brent crude futures were up 75 cents on the day at $44.38 per barrel by 0945 GMT, while U.S. crude futures were up 45 cents at $43.89 per barrel.

Allergan will buy back up to $10 billion in stock following a swing to a first-quarter profit on a strong surge in sales of key drugs, including the wrinkle and muscle spasm treatment Botox. The company reported net income attributable to ordinary shareholders of $186.1 million, or 47 cents per share, compared with a loss of $535.2 million, or $1.85 per share, a year earlier.

Lumber Liquidators Holdings Inc. posted a much deeper loss than expected in its first quarter as the hardwood-flooring company continued to face fallout from the safety of its Chinese laminate products. In all for the quarter ended March 31, the company posted a loss of $32.4 million, or $1.20 a share, compared with a loss of $7.8 million, or 29 cents a share, a year earlier.

Gap Inc., a clothing retailer warned of a sales decline in the first quarter and said it is looking to streamline its operations. The clothier said that April sales declined to $1.12 billion from $1.21 billion year-over-year, and first-quarter sales fell to $3.44 billion from $3.66 billion. Profit in the first
quarter is expected to be 31 to 32 cents per share.