GM's 18-year low drags down Dow
NEW YORK » Stocks closed an erratic session mixed yesterday as General Motors Corp. hit an 18-year low, dragging down the Dow Jones industrial average. Rising oil prices also dulled investor enthusiasm.
The price of crude overshadowed a government report of moderating inflation that initially gave stocks a modest lift. Oil futures settled at $57.88 a barrel, up 90 cents on the New York Mercantile Exchange, a sharp change from the four-month low they reached Tuesday. Yesterday's government petroleum inventory numbers were weaker then expected.
GM fell as concerns mounted about problems at its top supplier, Delphi Corp. and worries about the company's ability to turn around its performance. Leaders of the United Auto Workers said the union and Delphi remain far apart on a new labor agreement and fears of a strike have spooked investors.
Broader economic news was more upbeat. The Labor Department reported that consumer prices edged up just 0.2 percent in October, the best showing in four months. In September, consumer prices had soared by 1.2 percent on record energy prices. That inflation increase was the largest one-month jump in 25 years.
The Dow fell 11.68, or 0.11 percent, to 10,674.76.
Broader stock indicators were barely higher. The Standard & Poor's 500 index rose 2.20, or 0.18 percent, to 1,231.21, and the Nasdaq composite index rose 1.19, or 0.05 percent, to 2,187.93.
Bonds rose sharply as stocks declined, with the yield on the 10-year Treasury note falling to 4.47 percent from 4.56 percent late Tuesday.
Trading on Wall Street was light, and some analysts said last week's strong advances came in anticipation of yesterday's cheery inflation numbers, leaving little to trade on during the day's session.
General Motors fell $1.32 to $21.29.
American Express Co., a Dow component, fell 85 cents to $50.08 after the financial services company's chief executive said several analysts are overestimating the company's fourth-quarter profits based on incorrect assumptions about the firm's marketing plans, bankruptcy-related writeoffs and spinoff of its brokerage operation.
Caterpillar Inc., also a Dow stock, rose 83 cents to $56.73 after JPMorgan Chase & Co. said its worldwide machine sales continued to be strong in October.
Oracle Corp. fell 18 cents to $12.49 after it said it bought security-software specialists Thor Technologies Inc. and OctetString, continuing an aggressive shopping spree aimed at filling holes in its product lineup.