Posted on: Thursday, June 16, 2005
Stocks creep upward on good news, bad news
By Ellen Simon
Associated Press
NEW YORK — Wall Street scratched out its third straight minuscule gain yesterday as investors fretted over rising oil prices and disappointing inventory data from the Energy Department. Analysts attributed the gain to a calming assessment of the economy by the Federal Reserve.
In its weekly update on fuel, the government reported an unexpected 1.8 million barrel draw on crude as well as a drop in gasoline. The inventory data eclipsed OPEC's announcement that it would increase production by 500,000 barrels later this year if prices don't fall. Analysts said the oil cartel's decision was largely symbolic and would have little impact on actual output.
Light, sweet crude rose 57 cents to settle at $55.57 per barrel on the New York Mercantile Exchange, giving up some of its earlier gains.
The Fed's Beige Book assessment of the nation's economy also was released at midday. The Fed's 12 regional banks described their area's economic activity with such words as "moderate," "solid" and "well sustained."
Decliners and advancers were even on the Big Board yesterday. Consolidated volume was 1.89 billion shares, compared with 1.75 billion traded Tuesday.
The Russell 2000 index rose 2.80, or 0.4 percent, to 637.19.
Bonds rebounded from earlier losses. Yield on the 10-year Treasury was 4.10 percent, down from 4.11 percent Tuesday.
The dollar was lower against other major currencies.
Gold prices rose.
The surprise decline in domestic crude supplies overshadowed a 0.1 percent drop in the government's consumer price index. It was the first decline in 10 months for the index, which encouraged investors.
