U.S. stocks rose as oil prices slipped on Monday and Wal-Mart Stores Inc. forecast monthly sales near the top end of its estimates, but the dollar and Treasury debt prices fell, with investors edgy before a slew of U.S. economic data, Reuters reported. "The dollar is lower today but it continues to trade within well-established ranges," said Alex Beuzelin, senior market analyst at Ruesch International in Washington. "Traders are marking time ahead of this week's heavy batch of key U.S. economic reports...that would give us greater insight into the Federal Reserve outlook," he added. The Fed is expected to keep interest rates unchanged again next month and investors are eager to get any clues about the Fed's likely stance on the outlook for interest rates, heading into its Sept. 20 meeting. EURO RAKES IN GAINS The euro was up 0.4 percent at $1.2803, but this was more than a cent below recent two-month highs of $1.2939. Traders expect the single euro zone currency to trade between $1.2850, a key level that markets failed to get through on several occasions last week, and $1.2720. The euro also hit a record peak against the yen just below 150, as a smaller-than-expected rise in Japan's consumer price index (CPI) in July and downward revisions to previous months strengthened the view that Japanese interest rates will climb only gradually. The yen, however, slightly firmed against the dollar to 117.10 yen, but that was more due to the greenback's broad weakness. DATA IN FOCUS Markets are looking to this week's August U.S. payrolls report on Friday, as well as indications of growth in the personal consumption expenditures price index for July, to be released on Thursday. U.S. crude oil futures fell more than $2 as tropical storm Ernesto veered off its earlier projected path to target southern Florida instead of threatening crucial oil infrastructure in the Gulf of Mexico. U.S. crude for October delivery dropped to below $71 per barrel in open-outcry trading on the New York Mercantile Exchange. CRUDE RETREATS, STOCKS BOUNCE The retreat in crude hit energy shares but U.S. stock indexes edged higher as investors anticipated that it could bring industrial companies such as Caterpillar Inc., as well as consumers, some relief from soaring energy bills. Shares of Caterpillar, the heavy equipment maker, were among the biggest advancers on the Dow Jones industrial average, along with those of diversified manufacturer 3M Co. and Wal-Mart, the world's biggest retailer. By late morning, the Dow Jones industrial average was up 56.59 points, or 0.50 percent, at 11,340.64. The Standard & Poor's 500 Index was up 5.75 points, or 0.44 percent, at 1,300.84. The Nasdaq Composite Index was up 15.49 points, or 0.72 percent, at 2,155.78. In Europe, takeover activity and a bounce on Wall Street helped offset declines among energy stocks and pressure from car exporters, hurt by a rising euro. The FTSEurofirst 300 index of top European shares was up 5.84 points, or 0.43 percent, at 1,365.05. In Asia, Japan's Nikkei ended 176.07 points lower at 15,762.59, its lowest close since Aug. 11. The broader TOPIX index fell 1.21 percent to 1,600.25. TREASURIES, GOLD SLIP Benchmark 10-year U.S. Treasury yields rose from their five-month lows prior to a busy week of key economic data, new supply and ahead of the release of minutes from the Federal Reserve's Aug. 8 meeting on Tuesday. Yields on the 10-year Treasury note edged up to 4.81 percent in light trade, while two-year notes dipped 1/32 in price to yield nearly 4.89 percent, up 2 basis points from late Friday. This left the gap between two-year and 10-year yields at minus 8 basis points. U.S. gold futures also followed oil lower, pressured by some selling tied to the easing of storm concerns. At 11:41 a.m. (1541 GMT), December delivery gold fell $7.40, or 1.2 percent, to $623.40 an ounce on the New York Mercantile Exchange's COMEX division, near the bottom of a session range of $632.70 to $626.50.
