NEW YORK, Aug. 15, 2008
Stocks End Mixed On Credit Concerns, Oil
Wall Street Upbeat Over Falling Oil Prices; Worried About Weak Credit Markets
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Play CBS Video Video MoneyWatch Gas prices have dropped for 29 straight days, much to the delight of motorists nationwide. Alexis Christoforous reports on this and today's top financial news.
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(AP / CBS)
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Investors were encouraged early in the session as oil's pullback lifted the outlook for consumer companies and eased concerns that record-high energy prices would force Americans to curb spending. Light, sweet crude dropped $1.24 to settle at $113.77 a barrel on the New York Mercantile Exchange, and earlier traded as low as $111.34, its lowest level in more than three months.
Oil fell on a growing sense that economies around the world are joining the U.S. in a slowdown. The rising dollar, which is gaining strength on economic concerns, contributed to the sell-off in crude and other commodities. Crude is down more than $35 from its July 11 record of $147.27; meanwhile, gold prices that swept past $1,000 an ounce earlier this year are now below $800.
While the decline in oil was placating investors this week, it still did not offset their ever-present anxiety over the slumping housing and credit markets. Concerns about more write-downs at investment banks continued through the week, causing major market indexes to fluctuate.
"With some of this sharp price collapse in commodities you would think the market would be up a lot more," said Greg Church, chief investment officer of Church Capital Management. "The underlying factor is that credit continues to appear to be very weak."
According to preliminary calculations, the Dow Jones industrial average rose 43.97, or 0.38 percent, to 11,659.90.
Broader indexes were narrowly mixed. The Standard & Poor's 500 index rose 5.26, or 0.41 percent, to 1,298.20, while the Nasdaq composite index fell 1.15, or 0.05 percent, to 2,452.52.
For the week, the Dow finished down 0.63 percent and the S&P 500 rose a modest 0.15 percent. The Nasdaq, however, logged its fifth-straight weekly gain by finishing the week up 1.59 percent; it has risen 8.5 percent since mid-July.
The uncertainty in the market has increased demand for the safety of government debt, which rose modestly on Friday. The yield on the benchmark 10-year Treasury note, which moves opposite its price, slid to 3.85 percent from 3.90 percent late Thursday.
The dollar rose against other major currencies, contributing to the pullback in oil and other commodities.
Volume remained extremely light, exaggerating moves in the major indexes. On the New York Stock Exchange, advancing issues were relatively even with decliners as 1.15 billion shares exchanged hands.
The University of Michigan reported a slightly smaller-than-expected rise in consumer sentiment in early August compared with July, evidence that the consumer remains under pressure. Moreover, earnings outlooks from retailers J.C. Penney Co. and Abercrombie & Fitch Co. on Friday came in below expectations.
New York Attorney General Andrew Cuomo said Friday he plans to take legal action against Merrill Lynch & Co. as part of an ongoing investigation into the failure of the auction-rate securities market. Wachovia Corp., meanwhile, became the fifth bank in recent weeks to agree to repurchase billions of the investments as part of a settlement with regulators.
Merrill Lynch shares rose 4 cents to $26.33. Wachovia fell 24 cents, or 2.5 percent, to $15.57.
Airline stocks rose on the drop in oil. AMR Corp., the parent company of American Airlines, gained 46 cents, or 4.1 percent, to $11.74. However, shares of major oil companies declined, with ConocoPhillips down $1.71, or 2.1 percent, at $77.66.
The Russell 2000 index, which tracks small-cap stocks, fell 1.01, or 0.13 percent, to 753.37.
Overseas, Japan's Nikkei stock average rose 0.48 percent. Britain's FTSE 100 fell 0.66 percent, Germany's DAX index rose 0.06 percent, and France's CAC-40 rose 0.60 percent.
© MMVIII The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.
Best-selling author Mitch Albom on his first nonfiction work since "Tuesdays with Morrie."
The Saudis increased oil production and guess what, the price came down.
Duh - can everyone understand this concept. The more there is, the cheaper it becomes...
Now, it would be marvy to have no use for oil. You know, Barack''s plan to make oil obsolete by using renewable resources, like wind, sun, wave, etc.
I too think that is great. BUT, will it happen in the 10 years it will take to get US oil in the market ?
Nope.
How about 20 years ?
Nope.
How about 40 years ?
Nope!
Does THAT sound like a PLAN to you ?
Why does he want all that oil money going out of the US ?
Worse Automobile sales since the Great Depression.
And you wonder why anyone would ever vote for a Democrat named Barrack Hussein Obama.
Just how red-hot is the current worldwide expansion? "This is far and away the strongest global economy I''ve seen in my business lifetime," U.S. Treasury Secretary Hank Paulson declared on a recent visit to Fortune''s offices.
http://money.cnn.com/magazines/fortune/fortune_archive/2007/07/23/100134937/index.htm?section=money_latest
U.S. Economy: Expansion Was Faster Than Estimated
http://www.bloomberg.com/apps/news?pid=20601087&sid=aP3CFLmKC2CQ&refer=worldwide
Deficit Falls to $205 Billion
http://www.breitbart.com/article.php?id=D8QAD5LG1&show_article=1
Good Thing We Cut Taxes
http://ezraklein.typepad.com/blog/2006/09/good_thing_we_c.html
Don''t Just Cut Taxes - Cut Spending
http://www.heritage.org/Press/Commentary/ed021802.cfm?RenderforPrint=1
It''s productivity, stupid.
http://www.optimist123.com/optimist/2007/05/its_productivit.html
Economy Logs Brisk 3.9 Percent Growth
Economy Grows at Brisk 3.9 Percent Pace in Summer, Best Performance in 1 1/2 Years
http://biz.yahoo.com/ap/071031/economy.html?.v=3
Productivity Surges by 4.9 Percent Rate
http://www.breitbart.com/article.php?id=D8SP0K5G0&show_article=1&lst=1
Chronic Homelessness Takes Dip in 2005
http://www.breitbart.com/article.php?id=D8SP14A80&show_article=1&lst=1http://www.breitbart.com/article.php?id=D8SP14A80&show_article=1&lst=1
UP! Economy grew at 1.9% pace in second quarter
RECESSION ON HOLD
Economy grows at soft pace
http://www.reuters.com/article/businessNews/idUSN3043337220080731?feedType=RSS&feedName=businessNews&rpc=23&sp=true
Drop in homeless count seen as ''success story''
http://www.usatoday.com/news/nation/2008-07-28-homeless_N.htm
U.S. reports drop in homeless population
http://www.iht.com/articles/2008/07/29/america/30homelessweb.php
Oil prices drop, easing fears of energy shock
http://www.iht.com/articles/2008/07/30/business/30crude.php
Bush renews push for offshore oil drilling
http://www.breitbart.com/article.php?id=D927PD00C&show_article=1
Worse housing crisis since the Great Depression.
Worse inflation in housing,food and energy since the Great Depression.
Worse yearly budget defecit of 1/2 trillion in the history of the United States of America.
Worse creation of jobs since the Great Depression.
Worse wage increases to keep up with inflation since the Great Depression.
Most increase from drivers to pedestrians since the Great Depression.
Worse banking crisis since the Great Depression.
Worse bankruptcy crisis of Fannie Mae and Freddie Mac since creation during the Great Depression."
Witnessing "Busvilles" or "shanty towns" working people living out of vehicles in parking lots for the first time since the Great Depression.
And you wonder why America is clamoring for another FDR from Democrat Barrack Obama.
Lars we already have double digit inflation and unemployment, the figures are manipulated to say otherwise.
ummmmmm nancy,,,
carry over from the DIMMY KKKARTER BS economy,,,
before reagan could get the DEMONIC-RAT congress to implement his economy,,,
but then you knew that already,,,
here is your BAD ECONOMY nancy,,, and HUSSEIN will bring it back,,,
nothing succeeds like success
from the dimmy kar-ter years of double digit unemployment, double digit inflation rate and double digit house mortgage interest rates, car loans were like going to a loan shark
reagan years brought single digit unemployment, single digit inflation and single digit house mortgage rates
vote demonic-rat to reward the deadbeat parasites spendthrifts
vote gop to reward the workers, frugal savers, investers, job creaters
even a dishwasher can become financially independent and secure under capitalism
"Ask not what your country can do for you. Ask what you can do for your country." - John F. Kennedy, Inaugural Address, Jan. 20, 1961
The first requisite of a good citizen in this Republic of ours is that he shall be able and willing to pull his own weight. Theodore Roosevelt
If an American is to amount to anything he must rely upon himself, and not upon the State; he must take pride in his own work, instead of sitting idle to envy the luck of others. He must face life with resolute courage, win victory if he can, and accept defeat if he must, without seeking to place on his fellow man a responsibility which is not theirs. - Review of Reviews January 1897 Theodore Roosevelt
HUSSEIN SAYS MUSLIM CALL TO PRAYER IS ONE OF THE PRETTIEST SOUNDS ON EARTH AT SUNSET
%u201CI was a little Jakarta street kid,%u201D Obama said in a wide-ranging interview in his office (excerpts are on Nicholas D. Kristofs''s blog, http://www.nytimes.com/ontheground). He once got in trouble for making faces during Koran study classes in his elementary school, but a president is less likely to stereotype Muslims as fanatics %u2014 and more likely to be aware of their nationalism %u2014 if he once studied the Koran with them.
Mr. Obama recalled the opening lines of the Arabic call to prayer, reciting them with a first-rate accent. In a remark that seemed delightfully uncalculated (it%u2019ll give Alabama voters heart attacks), Mr. Obama described the call to prayer as %u201Cone of the prettiest sounds on Earth at sunset.%u201D
http://select.nytimes.com/2007/03/06/opinion/06kristof.html?_r=2&scp=5&sq=nicholas+kristof%20obama&st=nyt&oref=slogin&oref=slogin
- by sistatee-2009 August 15, 2008 11:42 PM EDT
- "Investors were encouraged early in the session as oil''s pullback lifted the outlook for consumer companies and eased concerns that record-high energy prices would force Americans to curb spending."
- Reply to this comment
See all 14 CommentsWhat''s curbing Americans'' spending is that they don''t have any money. NAFTA, favored by both McCain and Obama has sent all the jobs packing.