Monday's early trade: Wall Street rises with oil; investors shrug off Italian referendum

Financial shares and strong oil prices bolstered US stocks on Monday while currency and bond investors shrugged off Italian Prime Minister Matteo Renzi's resignation, following voters' rejection of his constitutional reforms. The Italian referendum stoked worries about Italy's political stability and its banking system, but US Treasury yields reversed their fall as the initial demand for low-risk US government debt faded with a euro and stock price revival.
"The initial reaction was quite negative, but as we have seen recently with other political events, risks will likely be played out over a period of time," said Brian Daingerfield, macro strategist at NatWest Markets in Stamford, Connecticut. US stocks rose as the S&P 500 banking index erased Friday's losses with a 1.7-percent jump and its energy index jumped 1 percent as oil futures rose.
The Dow Jones industrial average was up 84.64 points, or 0.44 percent, to 19,255.06, the S&P 500 gained 14.76 points, or 0.67 percent, to 2,206.71 and the Nasdaq Composite added 51.83 points, or 0.99 percent, to 5,307.49. Benchmark 10-year Treasury note yield was up 4 basis points at 2.429 percent, while the 30-year bond yield was up over 3 basis points at 3.097 percent. While Italy's 'no' vote was anticipated, the crushing margin of Renzi's defeat - 59 percent to 41 percent - stirred alarm among investors in Italian stock markets.