By Yashaswini Swamynathan

(Reuters) – The Dow was poised to open at an all-time high on Monday, as oil prices topped $55 a barrel for the first time in 16 months, and investors shrugged off the defeat of a referendum in Italy for constitutional reforms.

Futures lost ground slightly on Sunday after Italian Prime Minister Matteo Renzi said he would resign following the rejection.

However, world stocks, including Italian shares, reversed course to trade higher on Monday as investors bet against immediate snap elections in the country.

Brent crude prices were up 0.8 percent, after touching a high of $55.33, taking the total gains to 19 percent since Wednesday, when OPEC and other producers struck a deal to limit output to prop up prices. [O/R]

The Dow will open at a record intraday high, its eighth since Nov. 10, if active trading follows movement in futures. The index has marked four straight weeks of gains, benefiting from investors’ rotation into sectors such as financials, which are likely to gain from President-elect Donald Trump’s policies.

“You’ve got a very split tape with some sectors working well, like the financials and transports, while the rest of the market is not working well,” said Adam Sarhan, chief executive at Orlando, Florida-based 50 Park Investments.

However, Wall Street closed little changed on Friday as investors booked profits off bank stocks, despite a strong payrolls report that strengthened the prospects of an interest rate hike next week.

Dow e-minis <1YMc1> were up 73 points, or 0.38 percent, at 8:28 a.m. ET (130 GMT), with 57,797 contracts changing hands on Monday.

S&P 500 e-minis <ESc1> were up 6.5 points, or 0.3 percent, with 249,606 contracts traded.

Nasdaq 100 e-minis <NQc1> were up 17.5 points, or 0.37 percent, on volume of 39,369 contracts.

An Institute of Supply Management report is likely to show activity in the U.S. services sector rose slightly in November from the previous month. The report is due at 10:00 a.m. ET (1500 GMT)

New York Federal Reserve President and permanent voting member William Dudley said Trump’s election had created “considerable” uncertainty on the policies he would pursue so it was too soon for the Fed to judge whether its plan for gradual interest rate hikes needs adjusting.

Shares of Energy Transfer <ETP.N> dropped 6.9 percent to $32 after the U.S. Army Corps of Engineers turned down a permit for the company’s controversial pipeline project running through North Dakota.

FairPoint <FRP.O> shares jumped 14.4 percent after Consolidated Communications <CNSL.O> said it would buy the broadband service provider in an all-stock deal valued at $1.5 billion, including debt.

Chesapeake Energy <CHK.N> rose 4.2 percent to $7.53 after the U.S. natural gas producer said it would sell a part of its acreage in the Haynesville Shale area for $450 million to a private company.

(Reporting by Yashaswini Swamynathan in Bengaluru; Editing by Sriraj Kalluvila)