Posted on: Wednesday, June 22, 2005
Market ends mixed as investors eye oil prices
By Michael J. Martinez
AP Business Writer
NEW YORK — Stocks finished an uninspiring session mixed yesterday as investors kept a wary eye on near-record oil prices and debated the prospect of a Social Security reform package without private investment accounts.
Some analysts were cheered that stocks have yet to sell off despite higher oil prices, though there are growing worries about whether the market will be able to sustain its gains from May and June should oil prices remain at these levels.
Investors were also concerned about the state of Social Security reform after President Bush encouraged Republicans in Congress to introduce a proposal that did not include private accounts favored on Wall Street.
Bonds posted a strong rally after Monday's selloff, with the yield on the 10-year Treasury note falling to 4.05 percent from 4.11 percent late Monday. The dollar was mixed against major foreign currencies, while gold prices fell from Monday's three-month highs.
Declining issues outnumbered advancers by about 9 to 8 on the New York Stock Exchange, where consolidated volume came to 1.73 billion shares, compared to 1.74 billion traded Monday.
One day after reaching record highs, crude oil futures fell below $59 per barrel, but the historically high prices were still weighing on investors' enthusiasm for stocks. A barrel of light crude settled at $58.90, down 47 cents, on the New York Mercantile Exchange.
