DJI- NEW YORK, June 5 (Reuters) - U.S. stocks rose on Tuesday, recovering some ground from last week's selloff, as data showing the vast U.S. services sector improved in May outweighed investor angst about the euro zone's fiscal crisis.
Financial stocks ranked among the best performers. The S&P 500 financial sector index <.GSPF> gained 1.7 percent, significantly outperforming other sectors.
Bank of America shares shot up 2.9 percent to $7.10 and JPMorgan added 3.2 percent to $31.98. The financial sector index, however, has lost 13 percent since the start of May.
But the rebound was expected to be temporary as market sentiment remained bearish in the face of the euro zone's debt crisis and a slew of recent data that showed the world's largest economy was experiencing slower-than-expected growth.
The market could also be setting itself up for disappointment, with the European Central Bank meeting on
Wednesday and Federal Reserve Chairman Ben Bernanke testifying on the economy before a congressional committee on Thursday.
The Dow Jones industrial average <.DJI> was up 26.49 points, or 0.22 percent, at 12,127.95. The Standard & Poor's 500 Index <.SPX> was up 7.32 points, or 0.57 percent, at 1,285.50. The Nasdaq Composite Index <.IXIC> was up 18.10 points, or 0.66 percent, at 2,778.11.
NYMEX- NEW YORK, June 5 (Reuters) - U.S. crude oil futures rose for a second straight day on Tuesday as the vital U.S. service sector grew faster than expected in May, the ISM industry report showed - a small, bright lining that followed a spate of gloomy economic reports.
Gains were limited, however, as euro zone debt worries deepened after Spain said credit markets were cutting off the country. That pulled the euro lower against the dollar, deterring investors from making more bullish bets on oil futures.
Ahead of weekly inventory reports, U.S. crude stockpiles were forecast 500,000 barrels lower last week, a Reuters poll of analysts showed. If confirmed, the drawdown will snap 10 weeks of continuous increase.
Distillate stocks were expected to show a 300,000 barrel increase while gasoline stocks were seen likely up 700,000 barrels. Refinery utilization was predicted to have risen 0.6 percentage point.
On the New York Mercantile Exchange, crude for July delivery settled at $84.29 a barrel, rising 31 cents, or 0.37 percent, after trading between $83.31 and $84.92.
CBOT SOYBEAN- Chicago Board of Trade July corn futures were up 1/2 cent at $5.68-1/2 at the 1:15 p.m. CDT (1815 GMT) close of pit trade Tuesday on tight stocks. December dropped 14-3/4 cents at $5.09 on stable condition ratings for the U.S. crop.
U.S. corn ratings held steady, topping analysts' expectations, despite continued dry weather in southern areas of the Corn Belt, U.S. Agriculture Department data released on Monday showed.
Dry and mild weather is expected to continue in the U.S. Midwest corn and soybean growing region for at least 5 days with hotter temperatures likely by the weekend.
"The next 5 days will be dry and some heat by the weekend in the 80s (degrees Fahrenheit) to 90s F but it will be brief and cool down again next week," said Kyle Tapley, meteorologist for MDA EarthSat Weather.
FCPO- SINGAPORE, June 5 (Reuters) - Malaysian palm oil futures rebounded on Tuesday, tracking a recovery in overseas markets, as investors looked to policymakers for new action to tackle the euro zone's debt crisis.
Palm oil closed at its lowest level in 2012 the previous day, reflecting the bearish sentiment seen in a global sell-down of most commodities including, crude oil and soybean oil. But investors took a more optimistic stance on Tuesday ahead of a conference call of the Group of Seven's finance chiefs that could produce some concrete measures to solve the crisis.
"The market is a bit stronger today, basically on short covering and retracement after the previous day's sharp fall," said a trader with a foreign commodities brokerage in Malaysia.
"The palm oil market is adjusting to external factors. It will still be volatile until the Greek election."
Benchmark August palm oil futures on the Bursa Malaysia Derivatives Exchange gained 0.4 percent to close at 2,966 ringgit ($927) per tonne. Prices touched a low of 2,925 ringgit on Monday, their lowest since Nov 2, 2011.
Traded volumes stood at 33,420 lots of 25 tonnes each, higher than the usual 25,000 lots.
REGIONAL EQUITY- BANGKOK, June 5 (Reuters) - Thai stocks fell to their lowest level in four months on Tuesday as growing political tension prompted broad based selling, but other Southeast Asian share markets pushed higher, helped by hopes for more action on the euro zone debt crisis.
Thailand's benchmark SET index <.SETI> fell 1.4 percent to 1,099.15, the lowest close since Feb 7, led by losses in big caps such as Siam Cement Pcl and Bangkok Bank Pcl .
Thai politics has heated up after anti-government yellow-shirted People's Alliance for Democracy activists blockaded parliament last week and forced the government to postpone debate on a national reconciliation bill.
Brokers said investors could still stick to defensive stocks such as food and retail counters, which have unusually joined the rout.
"While both issues could lead to rising political confrontation in coming months, it would not cause a political
U-turn into the chaos seen over the past years in our view," said Suchart Techaposai, head of Thailand Country Research in a report.
"We view any market correction relating to the matter as an opportunity to buy into the ongoing private investment up-cycle led by FDI and Thai companies intending to improve productivity and lower costs."
