Posted on: Thursday, August 5, 2004
Upbeat economic data offsets oil price worries
By Michael J. Martinez
Associated Press
NEW YORK — Wall Street waffled through an erratic session yesterday, closing mixed as investors nervously watched oil prices but also allowed themselves to be encouraged by good economic news.
Stocks moved in the opposite direction from oil prices for much of the day, declining until early afternoon as crude climbed to $44.34 a barrel on the New York Mercantile Exchange. As oil fell below $43 on the way to a $42.83 close, Wall Street managed a late-session rally — but that advance quickly fizzled.
Still, the market's tone kept analysts and traders optimistic about long-term prospects.
"Yes, we have oil prices rising, but I think overall, we're starting to see some settling down in the market," said Bill Groenveld, head trader for vFinance Investments. "All the unknowns that drove the market down in July are starting to pan themselves out."
Stocks also received a boost from two key economic reports. Factory orders rose 0.7 percent in June. And the Institute of Supply Management's service sector index for June rose more than economists had forecast.
A key test for the economy and the markets will come Friday as the government releases the latest data on job creation.
Declining issues outnumbered advancers on the New York Stock Exchange, where preliminary consolidated volume came to 1.66 billion shares, compared with 1.62 billion on Tuesday. The Russell 2000 index of smaller companies was down 0.96, or 0.2 percent, at 542.67.
The Dow Jones industrial average rose 6.27, or 0.1 percent, to 10,126.51. The Standard & Poor's 500 index was down 1.06, or 0.1 percent, at 1,098.63, and the Nasdaq composite index dropped 4.36, or 0.2 percent, to 1,855.06.
