Wall Street gains; Nasdaq hits new highs in early trade

US markets ended in positive zone after a mid-session selling effort threatened to steal gains. However, support at the neutral line helped stocks rebound for a modest advance. The Nasdaq hit new highs in early trade.

Dow Jones Industrial Average was up 0.3% or 34.43 points at 11671.88. Nasdaq Composite was up 0.33% or 9.03 points at 2716.83. Standard & Poor's 500 was up 0.37% or 4.73 points at 1274.48.

In economic data, wholesale inventories unexpectedly fell by 0.2% in November, the first drop in 11 months. The national federal of independent business index of small business optimism slipped in December to 92.6 from 93.2.

In the economic data to watch, import price index for December is expected today. The prices indicate inflationary trends in internationally. From the commodity corner, the energy information administration would be releasing its weekly petroleum inventories in the US.

In the currency space- the euro rallied on speculation that euro zone officials could raise the effective lending capacity of the bloc's rescue fund and talk of increased Portuguese bond buying by the European Central Bank. The dollar index meanwhile traded around the 80 mark.

Oil prices jumped 2% above the USD 91 mark as 2 other oil fields in the north sea were shut thus increasing supply concerns for the market.

In the base metal space, copper prices rose the most in four weeks on Japan's plans to buy european-aid bonds.

Gold too continued its steady rise fueled by deepening worries on the European debt crisis.