Wall Street advances to recoup some of last week's loss as oil prices fall

U.S. stocks are rising and oil prices are falling on hopes that international efforts to calm escalating tensions in the Middle East can help. The latest strong report on the U.S. economy also helped the S&P 500 rise 0.7% on Monday. The Dow Jones Industrial Average gained 367 points and the Nasdaq composite climbed 0.5%. Goldman Sachs helped propel financial stocks to some of the market's biggest gains after reporting stronger profits than analysts expected. The pressure is on companies as a whole to generate higher profits as the other lever that sets stock prices, interest rates, appears less likely to offer short-term support .

THIS IS A LATEST UPDATE. AP's earlier story follows below.

(AP) After suffering their worst week since October, Wall Street markets rallied early Monday as investors got data on the government's latest retail sales figures and a handful of high-profile earnings reports.

Futures contracts for the S&P 500 and Dow Jones Industrial Average each rose 0.6% before the bell.

Oil prices have fallen despite tensions in the Middle East, where a attack Saturday night marked the first time Iran launched a military attack against Israel, despite decades of enmity dating back to the 1979 Islamic Revolution.

Benchmark US oil lost 70 cents to $84.96 per barrel. Brent crude, the international standard, lost 68 cents to $89.77. Slowing Chinese demand, combined with expectations that supply growth would outpace demand, has kept prices in check.

Although the drone attack grabbed headlines, its immediate impact on global markets, particularly on oil prices and inflationary concerns, may be muted, said Stephen Innes, managing partner at SPI Asset Management, in a comment. The precision and limited lethal impact of the Iranian response suggest a strategic approach aimed at minimizing damage rather than increasing tensions.

Nearly every sector posted gains early Monday, but none more so than defense contractors. Lockheed Martin led the way, up 1.8% before the bell.

In addition to retail sales data that showed a strong 0.7% gain, investors will also receive the latest financial results from Bank of America, United Airlines and Netflix this week.

Apple shares fell less than 1% after a report showed the iPhone came in second in phone shipments in the first quarter, behind Samsung. Apple's iPhone sales have weakened in China, worrying investors because of that country's slowing economy and reports that the country's government may ban its workers from buying iPhones .

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In Europe at midday, Germany's DAX and Paris' CAC 40 each rose 1%, while in London the FTSE 100 slipped 0.1%.

In Asian trading, Japan's benchmark Nikkei 225 index slipped 0.7% to 39,232.80.

In currency trading, the U.S. dollar rose to 153.89 Japanese yen from 153.07 yen, hitting a new 34-year high as investors turned to the traditional safe haven in times of uncertainty. The euro costs $1.0652, up from $1.0635.

Australia's S&P/ASX 200 fell 0.4% to 7,754.50, while South Korea's Kospi lost 0.4% to 2,670.43.

Hong Kong's Hang Seng fell 0.6% to 16,619.33. The Shanghai Composite index gained 1.3% to 3,057.38 after market regulators announced new support measures for the financial sector.

Elsewhere in Asia, Taiwan's Taiex was down 1.4% and India's Sensex fell 0.8% as the country prepared for a long national election process.

Stocks fell on Wall Street on Friday following a mixed start to profits reporting season.

The S&P 500 fell 1.5%, capping its worst week since October. The Dow Jones Industrial Average fell 1.2% and the Nasdaq composite fell 1.6% from its record set the day before.

A flow of reports this year showed both inflation and the whole economy remain warmer than expected. That forced traders to lower their forecasts for how many times the Federal Reserve might intervene. lowered its main interest rate This year. Traders are largely betting on just two cuts, according to CME Group data, down from forecasts by at least six at the beginning of the year.