Stocks Track Higher as Oil Ticks Lower

Updated from 11:03 a.m. EDT

Stocks in New York were rising off a weak open to tiptoe higher Monday as crude-oil prices pulled back from an earlier uptick and investors weighed the prospects of a strengthening U.S. dollar.

The Dow Jones Industrial Average was adding 48 points at 11,782, and the S&P 500 was up 8.5 points at 1305. The Nasdaq was gaining 25 points to 2439.

On Friday, U.S. stocks soared as oil continued its recent downtrend, falling 4% and settling at $115.20 a barrel. The Dow surged 302.89 points, or 2.7%, to 11,734.32, and the S&P 500 climbed 30.25 points, or 2.4%, to 1296.31. The Nasdaq was stronger by 58.37 points, or 2.5%, at 2414.10.

As the new week arrived, crude declined $1.29 to $113.91 a barrel as traders kept an eye on the widening military conflict between Russia and Georgia. The average price of gasoline fell to $3.81 from $3.818, marking its 25th straight day of declines.

Marc Pado, U.S. market strategist for Cantor Fitzgerald, said that a major oil pipeline runs through Georgia. Although Georgia has claimed that Russia is targeting the pipeline but missing it, Russia would have to actually hit the pipeline to cause a supply disruption, he said.

"For oil, the bigger story is the direction of the dollar," said Pado. He said that the dollar index, which measures the dollar against a basket of foreign currencies, has broken out of a trading range between 71 and 74. "Any technician is going to look at these and say this is a turn," he said. Pado also said that recent comments from the Federal Reserve implying that the market has seen a high for oil prices have helped strengthen the currency.