Posted on: Tuesday, October 19, 2004
Stocks edge higher as oil prices fall back
By Michael J. Martinez
Associated Press
NEW YORK — A sharp drop in oil prices gave Wall Street a modest relief rally yesterday, with stocks edging higher on news that oil production had soared during the month of September.
A barrel of crude closed at $53.67, down $1.26, on the New York Mercantile Exchange after reaching $55.33 before the session.
The good news about oil helped investors overcome 3M Co.'s earnings, which missed Wall Street's expectations as the company lowered its full-year outlook, blaming the volatile global economy for lower revenues. At least 30 percent of the Standard & Poor's 500 companies are scheduled to report earnings this week, though another rise in oil prices could draw attention away from the reports.
The Dow Jones industrial average rose 22.94, or 0.23 percent, to 9,956.32; the Nasdaq composite index gained 25.02, or 1.31 percent, to 1,936.52.
Tech stocks rose as investors waxed optimistic on earnings from International Business Machines Corp., which reported earnings after the session. IBM, which beat Wall Street estimates by 3 cents per share before a one-time charge, closed at $85.82, up $1.07, and gained another 96 cents in after-hours trading.
Advancing issues outnumbered decliners on the NYSE, where preliminary volume came to 1.71 billion shares, compared with 2.03 billion Friday.
Investors who have sold stocks for months as oil prices climbed reversed course yesterday and started buying as the price of crude declined. While oil topped $55 per barrel in pre-market trading, the latest production report from OPEC — showing crude production last month at 25-year highs — deflated futures trading substantially.
