US stocks higher amid focus on possible Fed rate rise

Wall Street stocks were slightly higher Monday as traders focused on the US July jobs report coming later this week which could, if strong, support an early rate rise by the Federal Reserve.

Fed Chair Janet Yellen said Friday that the case had strengthened for an increase in the benchmark federal funds rate, suggesting that strong hiring numbers this coming Friday could tip the Fed's hand, as early as its September 20-21 policy meeting.

About 40 minutes into trade, the Dow Jones Industrial Average was up 0.5 percent at 18,483.47.

The broad-based S&P 500 added 0.4 percent at 2,178.42, while the tech-rich Nasdaq Composite rose 0.3 percent to 5,232.37.

Data on consumer spending for July was relatively supportive of Yellen's views, with consumption up a firm 0.3 percent month-on-month. But the PCE price index, the Fed's preferred measure of price gains, was flat in the month and up just 0.8 percent from a year ago, holding well below the Fed's target.

Embattled drugmaker Mylan fell 0.7 percent after it answered critics of its alleged profiteering on its anti-allergy EpiPen injector by saying it would release a generic version at half of the current $600 price tag.

Computer chipmaker Micron added 2.0 percent after broker Stifel increased its price target for the stock.

On the Dow, IBM led gainers up 1.1 percent, while Nike was the top loser, off 0.3 percent.