Closing Market Report
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Investors waiting to see more economic data
By Joe Bel Bruno
Associated Press
NEW YORK » Wall Street squeezed out a small gain yesterday as traders got back to work from a three-day break to find oil prices retreating but little other data to guide them.
The major indexes, which all built on three-month highs, were again subject to low volume that isn't expected to return to normal until later in the week. Investors were largely adjusting their positions while they await the Federal Reserve's next meeting on interest rates, scheduled for Sept. 20.
With little economic news this week, investors are likely to make few moves until they have more signals about the economy's health. Recent reports, including housing and job claims, have indicated the economy is moderating enough to ward off future Fed rate hikes.
"We're probably going to be within a tight trading range until we start to get some indication from companies about how the quarter is looking," said Peter Schofield, a portfolio manager with Knott Capital. "There's nothing clearly on the horizon, besides the Fed meeting, that could cause a big swing on the market."
In the meantime, corporate news and oil prices are expected to be the main market drivers. Among the biggest gainers yesterday were oil companies after the discovery of a major new oil source in the Gulf of Mexico by Chevron Corp. and its partners.
The Dow Jones industrial average added 5.13, or 0.04 percent, to 11,469.28, having changed direction several times during the session. The Dow rose 1.6 percent last week.
Broader stock indicators were slightly higher. The Standard & Poor's 500 index was up 2.24, or 0.17 percent, at 1,313.25, and the Nasdaq composite index picked up 12.54, or 0.57 percent, to close at 2,205.70.
Bonds fell, with the yield on the benchmark 10-year Treasury note rising to 4.78 percent from Friday's five-month low of 4.73 percent. The dollar was off against most major currencies, while gold moved higher.
Oil prices, which fell below $70 per barrel last week, lent some support to stocks. Prices have weakened as Tropical Storm Ernesto missed the Gulf of Mexico, and a possible confrontation with Iran over its nuclear ambitions seemed less likely.
The price of crude fell 59 cents to $68.60 a barrel on the New York Mercantile Exchange, skidding in part after Chevron announced a discovery it hopes will boost U.S. oil and gas reserves by as much as 50 percent. Chevron led the oil sector higher, rising $1.51, or 2.3 percent, to $66.34.
Chevron controls a 50 percent stake in the oil field. Partners Devon Energy Corp. rose $7.99, or 12.5 percent, to $72.14, while Statoil ASA rose 66 cents, or 2.4 percent, to $28.17.