Stocks gain slightly
as oil prices slip

NEW YORK » An afternoon rally spurred by a drop in oil prices pushed stocks higher yesterday, bringing investors back into the market despite lingering concerns over the strength of the dollar and the nation's trade deficit.

Trading opened lower on fears that the economy could slow down further, spurred by Federal Reserve Chairman Alan Greenspan's warnings Friday that the U.S. budget deficit and trade deficit were causing undue pressure on the U.S. dollar and the economy. Those concerns weighed heavily on Wall Street Friday, prompting a 115-point drop in the Dow Jones Industrials.

Yet investors were cheered yesterday afternoon as oil prices fell slightly, and used the dip as an excuse to continue buying stocks, analysts said. A barrel of light crude settled at $48.64, down 25 cents, on the New York Mercantile Exchange.

The Dow rose 32.51, or 0.31 percent, to 10,489.42.

Broader stock indicators closed substantially higher. The Standard & Poor's 500 index was up 6.90, or 0.59 percent, at 1,177.24, and the Nasdaq composite index gained 14.56, or 0.7 percent, to 2,085.19.

Prompted by Greenspan's comments last week, investors worried that a free-falling dollar, which has been regularly setting record lows in recent weeks, could harm the inflow of foreign investment into U.S. stocks and bonds. The dollar was little changed against the euro and the Japanese yen, remaining near its historic lows.

Thanksgiving week has traditionally been a strong time for stocks, despite light volume, and analysts noted that many mutual funds end their fiscal years on Nov. 30 -- prompting many money managers to buy up stocks in the hopes of bolstering their yearly returns.

Oracle Corp. slipped 7 cents to $12.68 after 61 percent of PeopleSoft Inc. shareholders agreed to Oracle's $24 per share takeover bid. However, PeopleSoft's board said the offer remains inadequate, setting the stage for a bruising takeover battle. PeopleSoft rose 19 cents to $23.36.

Google Inc. fell $4.30 to $165.10 as the company's founders and top executives filed plans to sell 16.6 million shares over the next 18 months, unnerving investors who fear such an influx of stock could drive share prices lower.

Krispy Kreme Doughnuts Inc. swung to a loss in the third quarter, though it managed an operating profit of 4 cents per share excluding one-time costs. Wall Street had expected earnings of 13 cents per share on heavily reduced expectations. Krispy Kreme was down $1.86, or 16.2 percent, at $9.64.