Stocks Climb as Slide in Oil Prices Continues
A continued slide in oil prices gave Wall Street a moderate advance Friday, with earnings from Dell and a labor deal at General Motors feeding the gains. The major indexes ended the week more than 1% higher, their third straight winning week.
Volume was light with the U.S. Treasury bond market closed for Veterans Day and many traders taking the day off. Friday’s advance was fueled by momentum from three weeks of strong gains, said Jay Suskind, head trader at Ryan, Beck & Co.
“I think it’s going to be tough to draw conclusions because of the lack of participation,” Suskind said. “Next week, you’ll start to hear about technical levels of the indices. People will be wondering, ‘Can we break through and really continue this year-end rally?’ ”
Suskind added that lower oil was improving the consumer picture ahead of the crucial holiday shopping season. A recent slide in crude futures has eased worries that record gas prices will eat into household income and weigh on retail spending.
Meanwhile, technology stocks moved higher as Dell’s lackluster results were not as bad as feared, and media conglomerate News Corp. rose after its operating profit -- before a hefty accounting charge -- beat analysts’ estimates.
For the day, the Dow Jones industrial average gained 45.94 points, or 0.4%, to 10,686.04, its highest close since Aug. 3. The Dow added more than 93 points in the previous session.
Broader stock indicators were also higher. The Standard & Poor’s 500 index was up 3.76 points, or 0.3%, at 1,234.72, and the Nasdaq composite index climbed 5.79 points, or 0.3%, to 2,202.47.
Declining issues led advancers for most of the session, but advancers eventually overtook decliners by 9 to 7 on the New York Stock Exchange.
Crude oil has fallen to its lowest levels since summer after recent reports of expanding supplies and weaker demand. A barrel of light crude fell 27 cents to $57.53 in New York trading.
Wall Street posted a third consecutive week of sturdy gains despite a shortage of economic or earnings data to guide investors. But next week brings key monthly reports on inflation, retail sales and industrial activity, as well as earnings from Wal-Mart Stores, Hewlett-Packard and Tyco International. Traders will be watching the numbers closely for any signs of where the market might be headed.
For the week, the Dow advanced 1.5%, the S&P; 500 added 1.2% and Nasdaq was higher by 1.5%.
Ed Peters, chief investment strategist for PanAgora Asset Management, said he believed the market would make a final push this year -- not just because of the traditional year-end rally but also because positive economic numbers would brighten investors’ moods.
“By December, we will have a much clearer idea of the impact of the hurricanes and of higher oil prices,” Peters said. “I think the market will find it overreacted. We’ll probably see an improvement.”
In other market highlights:
* Dell reported after the market closed Thursday that third-quarter profit dropped 28%, but without charges from restructuring and faulty components, its adjusted earnings matched reduced analysts’ expectations. Dell rose 19 cents to $29.40.
* News Corp. said after the bell Thursday that it took a $433-million loss because of a $1-billion accounting charge related to the value of its television licenses. However, adjusted income gained 20% on strong revenue growth. News Corp. jumped 29 cents to $15.53.
* DreamWorks Animation SKG shares slid $1.73 to $24.80 after posting a third-quarter loss of $656,000 late Thursday.
* GM shares gained 97 cents to $24.48 on news that GM’s workers approved a deal raising the amount they pay for health benefits but keeping retiree coverage.
* PortalPlayer surged $2.93 to $24.17. The supplier of components for Apple Computer Inc.’s iPod digital music players said it expected fourth-quarter profit, excluding some items, of as much as 50 cents a share. It previously estimated earnings of up to 46 cents.
* Juniper Networks, which makes equipment that directs Internet traffic, lost 46 cents to $23.99. Siemens, Germany’s largest engineering company, is selling a stake worth $544.1 million in Juniper.
* ImClone Systems lost 51 cents to $32.05 after the maker of the Erbitux cancer drug said Chief Executive Daniel Lynch had resigned.
