U.S. Markets Post Modest Gains As Oil Continues Selloff

New York, NY (AHN) - All three major indices were able to post modest gains Monday as the price of crude oil fell to its lowest level since May 1.

Reports out of China showing a 7 percent decline in the country's July crude oil imports from a year ago helped spark another sell-off in the commodity. Oil traded below $113 a barrel at one point before settling with a loss of 75 cents at $114.75 a barrel.

The Dow Jones Industrial average added 48 points or 0.41 percent as the number of Dow components finishing higher outpaced those that declined by an 18 to 12 margin. American Express, up 3.6 percent, provided the most strength.

The S&P 500 gained nine points, or 0.69 percent, led by strength in consumer discretionary stocks. The sector finished 2.5 percent higher as a 9 percent pop in the shares of Amazon helped lift the group. Amazon traded higher after Citigroup said sales of the company's electronic book reader, Kindle, are stronger than expected.

The Nasdaq Composite rose 26 points or 1 percent. The semiconductor stocks were strong for a second consecutive session, adding nearly 2 percent on Monday.

With the price of oil and coal finishing lower Monday; the energy and the materials sector both finished down 0.4 percent. The financial sector added 1.7 percent on the session.

Advancing issues outnumbered decliners by 5 to 3 on the New York Stock Exchange; volume on the exchange was light for a second consecutive session at 1.26 billion shares.

The monthly trade balance report is set for release before the open of Tuesday's session. The report monitors the amount of U.S. exports and imports and is used as a gauge for foreign and domestic demand.