Earnings draw
attention from oil

NEW YORK » Stocks wobbled to a mixed close yesterday as a government report showed an improved supply outlook for oil, and the first day of earnings season forced investors to shift their focus to company news.

Investors were in the early stages of trying to assess what the upcoming profit results might reveal about the economy's momentum. Wall Street is likely to pay particular attention to the reports from industrials and financial companies as it eyes the impact rising interest rates have had over the course of 2005's first quarter.

The Dow Jones industrial average rose 27.56, or 0.26 percent, to 10,486.02.

The broader gauges were mixed. The Standard & Poor's 500 index added 2.68, or 0.23 percent, to 1,184.07. The Nasdaq composite index declined 0.18, or 0.01 percent, to 1,999.14.

While the quality of corporate profits is likely to emerge as the main driver in the weeks ahead, Wall Street is also watching oil prices. A decline in crude coupled with a firmer dollar could help stocks break out of the low end of their current trading range, said Subodh Kumar, chief investment strategist with CIBC World Markets.

"There are two kinds of risks right now. One is oil prices going ever higher, the second is the U.S. dollar going ever lower," Kumar said. "So you have to look at both of these things. A firmer dollar is better for capital market risk, and oil prices pulling back may reduce some fears about earnings and consumer spending."

Financial stocks were among the day's best gainers as Treasuries continued their rally; the yield on the benchmark 10-year note fell to 4.43 percent from 4.47 percent late Tuesday. The U.S. dollar was mixed against other major currencies. Gold prices rose.

Oil futures settled 19 cents lower at $55.85 on the New York Mercantile Exchange, following the government's weekly fuel supply report, which showed a 2.4 million barrel build in crude. There was also a 2.1 million barrel draw in gas inventories, however, which could cause some concern ahead of the summer driving season.

In Washington, Federal Reserve Chairman Alan Greenspan urged Congress to limit the size of the multibillion-dollar portfolios held by mortgage giants Fannie Mae and Freddie Mac, warning that stronger regulations alone would not sufficiently reduce the risk they pose to the U.S. financial system. Restraining their growth is essential, he warned, because if one or both of the institutions fail, the federal government would have to bail out investors.