Stocks signal higher open as oil prices rise

Wall Street took comfort from a rise in oil prices and headed toward a higher open Monday, though investors remained cautious as Israel continued its attack on Gaza for a third day.

Oil rose above $40 a barrel Monday after the conflict between Israel and Gaza's Hamas rulers raised tensions in the Middle East. Light, sweet crude rose $2.52 to $40.23 a barrel in premarket electronic trading on the New York Mercantile Exchange.

The advance in oil was welcome for some investors who have worried that plunging prices signaled a long and severe recession. Oil has fallen more than $100 from its peak of $147.27 a barrel on July 11 as a slowing economy curbed demand. While Monday's advance came amid unease in the Middle East, the increase helped oil companies, with Exxon Mobil Corp. shares up more than 1 percent in the premarket session.

Read full story from The Associated Press