US stocks end higher; oil slump bogs energy sector

NEW YORK (AP) — The U.S. stock market mounted a last-minute comeback to close slightly higher on Monday, snapping a three-day losing streak.

The Standard & Poor's 500 index and the Dow Jones industrial average each eked out a tiny gain, while the Nasdaq composite ended slightly lower.

Consumer staples stocks were among the biggest gainers. Oil and gas companies were hit by another plunge the price of crude oil, which tumbled 5.3 percent to a 12-year low. Chevron lost 1.7 percent and Exxon Mobil fell 1 percent.

The latest downturn in oil comes at a time when investors are increasingly uneasy about the trajectory of China's economy and the possible implications for U.S. company earnings. China's Shanghai composite fell 5.3 percent on Monday.

"Investors have one eye on China, and all that's going on there, and the other eye on oil," said Erik Davidson, chief investment officer at Wells Fargo Private Bank. "Those two things are keeping investors on pins and needles right now."

The Dow added 52.12 points, or 0.3 percent, to 16,398.57. The S&P 500 index rose 1.64 points, or 0.1 percent, to 1,923.67. The Nasdaq fell 5.64 points, or 0.1 percent, to 4,637.99.

All of the major stock indexes are down sharply for the year.

The three indexes hinted at a rebound early Monday, but spent much of the day in the red as investors weighed the implications of another stock market drop in China and the slide in crude. The market appeared headed for a lower close until the final minutes of regular trading, when the Dow and S&P 500 index shifted back into positive territory.

Monday's market action is a slight reprieve from an otherwise rough year so far for investors.

Last week, U.S. stocks posted their worst week in more than four years. It was also the market's worst-ever opening week of a year.