U.S. stocks rebounded from early weakness to flirt with positive territory on Thursday, with energy stocks rising as crude oil prices surged another 11% on a weak dollar and expectations of upcoming production cuts.
The energy sector jumped 4% as crude oil futures rose $5.12, or 11.6%, to $ 48.57 a barrel, extending a rally from the previous session.
The rest of the market, however, remained flat to negative amid ongoing concerns about a bailout for the U.S. auto industry. Late Wednesday, the U.S. House of Representatives approved a $14 billion federal loan package to the Big Three automakers in a 237-170 vote.
"The bill now has to go through the Senate where it is expected to face a tougher challenge," said Robert Kavcic, an analyst at BMO Capital Markets.
The Dow Jones Industrial Average (DJI) was up 20 points, or 0.2%, at 8,782, off a morning low of 8,617.
Among blue-chips, shares of Chevron Corp. (CVX) jumped 4% and those of Exxon Mobil Corp. (XOM) rose nearly 2%.
Weighing on the Dow, shares of General Motors Corp. (GM) slumped 6%, while away from the Dow, Ford Motor Co. (F) shares fell 4%.
Financial blue chips were also under pressure, with JP Morgan Chase (JPM) off 4.5%, Citigroup (C) down 5% and Bank of America (BAC) down 3.6%.
Also on the Dow, household products giant Procter & Gamble lowered its sales growth forecasts for the current quarter. The company, however, said it still expects to meet its previously earnings forecasts and its shares rose 0.6%.
The S&P 500 index (SPX) rose 1.9 point
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