U.S. stock indexes notch modest gains as oil prices rise

Oil and gas exploration companies led U.S. stocks modestly higher Wednesday, giving the market its second gain in two days.

Energy stocks, already the best-performing category this year, got a boost from U.S. crude oil prices, which climbed to $51.60 a barrel, the highest level in 15 months. Companies that make consumer products were the biggest laggards.

Investors brushed off new data showing residential construction slowed last month. Instead, the focus remained on companies reporting quarterly results.

Overall earnings for companies in the Standard & Poor’s 500 index have been down on an annual basis the past five quarters. But the results so far suggest the start of a turnaround, said Paul Christopher, head global market strategist for Wells Fargo Investment Institute.

“We do think the earnings recession is ending,” said Mr.

Christopher. “We’re still early in the reporting season, but we see so far the trends that we’re looking for.”

The Dow Jones industrial average gained 40.68 points, or 0.2 percent, to 18,202.62.

The S&P 500 index rose 4.69 points, or 0.2 percent, to 2,144.29.

The Nasdaq composite index added 2.58 points, or 0.1 percent, to 5,246.41.

Indexes wavered between small gains and losses in early trading Wednesday, then turned higher by midday and stayed higher for the rest of the day.

Morgan Stanley rose 1.9 percent after the investment bank said its earnings soared 62 percent in the third quarter, thanks to big gains in bond trading. Goldman Sachs disclosed similar results Tuesday. Morgan Stanley added 61 cents to $32.93.