Stock Prices End Mixed; Oil Leaps on Cold Weather
The stock market tried to regain its upward momentum Monday, but the bulls were hampered by an afternoon sell-off tied to stock index futures.
In other trading, crude oil prices rebounded after last week’s slide. The newly invigorated dollar held its ground against the euro.
On Wall Street, the Dow Jones industrial average closed with a gain of 11.11 points, or 0.1%, at 10,499.18, after being up as much as 80 points at midday.
The Standard & Poor’s 500 index also managed to close modestly higher, up 4.13 points, or 0.4%, at 1,135.26. But the Nasdaq composite eased 3 points, or 0.2%, to 2,063.15. It was the fifth straight decline for the technology-dominated index -- the longest losing streak since early August.
Winners topped losers by 6 to 5 on the New York Stock Exchange, but losers had a slight edge on Nasdaq.
Traders said share prices were undercut by a sharp decline in stock index futures in Chicago late in the day. A drop in futures prices can drag stocks down as well, and vice versa.
Most stocks fell last week, hurt by an apparent signal from the Federal Reserve on Wednesday that the central bank might be closer to raising interest rates as the economy improves. The S&P; 500 index dropped 0.9% for the week, after nine consecutive weeks of gains.
Many analysts said stocks were ready for a pause, with or without disappointing news from the Fed. The Nasdaq index soared 50% last year; the S&P; index rose 26%.
“This market clearly cannot sustain this kind of growth, no matter how good [corporate] earnings may be,” said Rod Smyth, chief investment strategist for Wachovia Securities.
Bond yields, which rose late last week after the Fed’s meeting, inched up again Monday amid more signs of economic strength and as the government announced plans to borrow more money than previously expected to cover the swelling budget deficit.
The Treasury said it planned to borrow a net $177 billion in the first quarter, a record.
The benchmark 10-year Treasury note yield ended at 4.15%, up from 4.13% on Friday.
In commodities trading, crude oil futures in New York jumped almost 6%, the biggest one-day increase in 10 months, on worries about low U.S. inventories as cold weather grips much of the nation.
Near-term oil futures leaped $1.93 to $34.98 a barrel. The recent peak was $36.20 on Jan. 20.
The euro slipped to $1.242, down from $1.247, as the threat of higher U.S. interest rates kept many currency traders from attempting to push the buck down again. The euro peaked at $1.28 on Jan. 9.
Among the day’s market highlights:
* Healthcare stocks rallied after the Food and Drug Administration approved Spiriva, a lung-disease treatment co-marketed by Pfizer, and after Chiron said it began clinical trials for an HIV and hepatitis virus test.
Pfizer added 78 cents to $37.41; Chiron rose 90 cents to $53. Also in the drug sector, Amgen gained $1.47 to $66.13, Eli Lilly jumped $1.01 to $69.05 and Gilead Sciences surged $1.46 to $56.27.
* Tech issues pulling Nasdaq lower included Intel, down 20 cents to $30.32; Qlogic, down $2.09 to $42.90; Qualcomm, down $1.05 to $57.56; and Digital River, down $1.50 to $22.13.
* Real estate investment trusts continued their recent winning streak. Vornado Realty rallied $1.05 to $57, Simon Property rose $1.10 to $53.15 and Arden Realty added 45 cents to $31.45.
* One of the most awaited new stock issues of the first quarter, TRW Automotive, was priced at $28 a share. Shares of the auto parts maker, which raised $676 million in the IPO, will begin trading today on the NYSE under the symbol TRW.
