DJI - NEW YORK, Dec 10 (Reuters) - U.S. stocks edged higher on Monday as technology shares bounced back after recent weakness and McDonald's posted strong monthly sales.
Technology stocks were led by Hewlett-Packard Co, which climbed 2.6 percent to $14.16 on rumors that activist investor Carl Icahn is building a stake in the PC maker. The stock is down 44.5 percent for the year and ranks as the Dow's worst performer. The S&P technology index was up 0.3 percent.
Tech also was supported by Cisco Systems, which gained 2.4 percent to $19.79 after the company presented its midterm growth strategy on Friday.
McDonald's Corp gave the Dow a jolt, gaining 1.1 percent to $89.41, as its November sales were stronger than expected and showed a bounce back from a decline in October.
There was little news Monday about the negotiations over the "fiscal cliff," a series of automatic tax hikes and spending cuts that could hurt economic growth next year. Concerns that lawmakers will not broker a deal have kept a lid on optimism in the equity market.
"There is a general sense that if a deal is struck, that we could have a further advance in the market at the end of this year as well as the first part of next year," said Michael Sheldon, chief market strategist at RDM Financial in Westport, Connecticut.
A breakout to the upside on a cliff deal could take the S&P 500 back up to 1,474, just off the 2012 high for the index, said Elliot Spar, Stifel Nicolaus option market strategist in Shrewsbury, New Jersey.
The benchmark S&P 500 index has yet to see a move greater than 0.5 percent in either direction on any day in December, and hasn't moved more than 1 percent either way in any session since Nov. 23. However, the market has regained most of the losses incurred post-election as investors refocused on the fiscal cliff.
U.S. President Barack Obama met with Republican House Speaker John Boehner on Sunday to negotiate a budget deal. A Boehner aide said Monday that talks are continuing.
The Dow Jones industrial average .DJI rose 14.75 points, or 0.11 percent, to 13,169.88 at the close. The Standard & Poor's 500 Index .SPX inched up just 0.48 of a point, or 0.03 percent, to 1,418.55. The Nasdaq Composite Index .IXIC advanced 8.92 points, or 0.30 percent, to close at 2,986.96.
News out of Italy kept sentiment in check as Prime Minister Mario Monti said he would resign after the approval of the 2013 budget. The move added to uncertainty about progress being made to tackle the euro zone's debt problem and drove Italy's borrowing costs higher.
U.S.-listed shares of Nexen jumped 13.8 percent to $26.77 and the stock was the second-most actively traded on the New York Stock Exchange. On Friday, Canada approved a $15.1 billion bid by CNOOC Ltd for energy company Nexen.
The S&P materials index gained 0.7 percent and led the S&P 500's sector index gains as shares of mining companies rose in sync with copper and gold prices. Shares of Freeport-McMoRan gained 1.1 percent to $32.04.
Volume was roughly 5.3 billion shares traded on the NYSE, the Nasdaq and the NYSE MKT, compared with the year-to-date average daily closing volume of roughly 6.5 billion.
Advancers outnumbered decliners on the NYSE by a ratio of about 17 to 13, while on the Nasdaq, seven stocks rose for every five that fell.
NYMEX - NEW YORK, Dec 10 (Reuters) - U.S. crude futures edged lower on Monday, pressured by warm temperatures and robust domestic inventories, retreating after supportive economic data from China had pushed oil prices higher.
CBOT Soybean - Soybean futures on the Chicago Board of Trade settled higher after a seesaw session as traders adjusted positions one day ahead of a monthly supply/demand report from the U.S. Department of Agriculture.
- Gains limited by long liquidation and prospects for a large Brazilian soybean crop amid forecasts for beneficial rains this week
- The benchmark January soybean contract dipped below its 200-day moving average at $14.67-1/4 a bushel but settled above it.
- Trade expects USDA on Tuesday to trim its forecast of U.S. 2012/13 soybean ending stocks to 130 million bushels, from 140 million in November.
- USDA on Monday reported export inspections of U.S. soybeans in the latest week at 46.632 million bushels, toward the low end of a range of estimates for 46 million to 51 million.
- Forward sales of Brazilian soybeans from the 2012/13 crop advanced slightly to 51 percent of the expected harvest, up from 50 percent a week earlier and 42 percent a year ago, analyst Celeres said.
- China, the world's largest soy buyer, imported 4.16 million tonnes of soybeans in November, up 3.2 percent from October, Chinese customs data showed. Imports of vegetable oils in November were 920,000 tonnes, up 2.2 percent from the previous month.
FCPO - KUALA LUMPUR, Dec 10 (Reuters) - Malaysian palm oil futures inched up on Monday as slower-than-expected growth in stocks last month and firm export demand in the first ten days of December lifted sentiment.
Traders are expecting stronger export demand in the days to come, potentially cutting into record stocks notched in November and supporting benchmark palm oil futures.
This decline marks the worst annual performance for palm oil futures since the financial crisis in 2008 although traders said this provides a massive buying opportunity for the edible oil that trades at a $350 discount to competing Argentine soyoil.
"We could see an upward swing in prices this week. The market will be pricing in more positive sentiment," said a trader with a foreign commodities brokerage in Kuala Lumpur.
Benchmark February contract on the Bursa Malaysia Derivatives Exchange settled up 0.7 percent to 2,313 ringgit ($760) per tonne. Total traded volumes rose to 35,330 lots of 25 tonnes each, higher than the usual 25,000 lots.
Data from the Malaysian Palm Oil Board showed that November's inventory level rose 2.3 percent to a record 2.56 million tonnes from the previous month. Stocks grew at a weaker than expected pace, giving support to prices during afternoon trade.
Firm exports also gave support. Cargo surveyor Societe Generale de Surveillance said Malaysian exports for Dec 1-10 rose 0.4 percent to 516,841 tonnes from 514,798 tonnes shipped during Nov 1-10.
Investors are banking on higher shipments in the next few weeks as planters rush to finish their annual tax free export quota allocation of 3.5 million tonnes which expires end of December.
Brent crude oil rose above $107 a barrel on Monday, snapping five straight days of losses after Chinese data showed the world's biggest energy consumer was rebounding after a slowdown.
In palm oil's competing markets, U.S. soyoil for January delivery fell 0.3 percent. The most active May 2013 soybean oil contract on the Dalian Commodity Exchange ended almost flat.
Regional Equities - Dec 10 (Reuters) - Singapore shares edged up to their highest in 16 months on Monday while most other Southeast Asian stocks also ended higher on optimism over the rising factory output growth in China and falling unemployment rate in the United States.
However, concern over a fresh bout of euro zone uncertainty after a decision by Italian prime minister to resign capped the gains.
Singapore edged up 0.2 percent to its highest since Aug. 4, 2011, while Malaysia rose 0.9 percent to a four-week high, with a $11.14 million net foreign inflow.
Indonesia added 0.3 percent to its highest close since Nov. 27, led by finance shares. Bank Central Asia Tbk PT gained 4 percent despite the broad market seeing a net foreign selling of $24.9 million.
Vietnam ended 0.8 percent higher, while the Philippines, bucked the trend to fall 0.6 percent.
