US stocks rose on Monday, with investors finding reasons to buy equities as oil prices receded from a record high above $67 and data showed the US economy appears to be on solid footing. Shares of Apple Computer Inc and Time Warner Inc helped drive the broad Standard & Poor's 500 index higher.
Light, sweet crude for September delivery fell 59 cents to settle at $66.27 a barrel on NYMEX.
The Dow Jones industrial average gained 34.07 points, or 0.32 percent, to end at 10,634.38. The S&P 500 gained 3.48 points, or 0.28 percent, to finish at 1,233.87. The technology-laced Nasdaq Composite Index rose 10.14 points, or 0.47 percent, to close at 2,167.04.
"It's a relief reaction," said Jim Awad, chairman of Awad Asset Management, in New York. "You had a modest reflex reaction to the fact that oil was down."
The easing in oil prices came after a week in which NYMEX crude futures hit new highs each day, culminating with a record high at $67.10 on Friday. High oil prices are typically a negative for stocks since they drive up many corporate costs and eat into consumers' discretionary spending.
On the economic front, a report from the New York Federal Reserve Bank showed that new orders and employment at New York State factories showed gains in August from July, though overall manufacturing growth slowed for the month. A survey by the Federal Reserve Bank of Philadelphia showed private-sector economists have raised their forecast for 2005 US real gross domestic product growth.
Among economically sensitive Dow stocks, aircraft maker Boeing Co rose 1.4 percent, or 92 cents, to $67.46 and consumer-goods company Procter & Gamble Co gained 1.2 percent, or 63 cents, to $54.18. Both trade on the New York Stock Exchange.
Agilent Technologies Inc was the NYSE's biggest percentage gainer after the maker of electronic measurement equipment said it planned to sell its semiconductor unit and a stake in a lighting technology company. Its shares soared 14.8 percent to $30.33.
Shares of Dow Jones & Co rose 11 percent, or $4.09, to $41.14 on the NYSE after the New York Post, without naming its source, reported that members of Dow Jones' controlling family were looking to sell the publisher of the Wall Street Journal. A Dow Jones spokesman declined to comment.
Shares of Apple, which makes Macintosh computers and iPod music players, rose 3.4 percent, or $1.58, to $47.68 on Nasdaq after Piper Jaffray named it a top large-cap pick.
Time Warner shares rose 1.4 percent, or 26 cents, to $18.50 on the New York Stock Exchange after billionaire investor Carl Icahn called on the media company to separate its cable business and buy back at least $20 billion in its shares. Delta Air Lines was the worst performer in the S&P 500. The stock plunged 13.7 percent, or 22 cents, to $1.39 on the NYSE after the New York Times reported on Saturday that the struggling air carrier has begun arranging the financing it would need, should it seek bankruptcy protection.
Trading was moderate, with 1.18 billion shares changing hands on the NYSE, below the 1.46 billion daily average for last year. About 1.38 billion shares were traded on Nasdaq, below the 1.81 billion daily average last year.
The number of shares advancing in value exceeded the number declining by a ratio of more than 9 to 7 on the NYSE and by about 3 to 2 on Nasdaq.
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