Stocks mixed on oil rebound, solid Goldman results
By MADLEN READ
AP Business Writer
NEW YORK (AP) — The stock market trading was mixed during the early hours today , with investors pleased to see that Goldman Sachs' profit bested estimates but also concerned about high energy prices.
Goldman Sachs Group Inc., the world's largest investment bank, posted a better-than-expected profit of $2.05 billion during its second fiscal quarter. Goldman shares rose 63 cents to $182.75.
In volatile trading, crude oil at times rose above $134 a barrel on the New York Mercantile Exchange, renewing unease about energy. Investors have been worried that rising energy prices, which affect almost all other costs, are going to prove too much for already strapped U.S. consumers.
The day's economic data were troubling to Wall Street as well. The Labor Department said its index of producer prices shot up 1.4 percent in May, the largest jump since November, indicating that companies are having to swallow large cost increases.
The core producer price index, which strips out food and energy prices, rose by a mild 0.2 percent. Still, the big concern on Wall Street is that companies may be forced to pass their rising costs on to customers. Government figures released last week showed consumer prices rising slightly more than expected last month due, in part, to spiking energy prices.
Also Tuesday, the Commerce Department reported a 3.3 percent decline in May home construction and a 1.3 percent dip in building permits — signs of persistent weakness in the struggling housing market.
In midmorning trading, the Dow Jones industrial average fell 14.17, or 0.12 percent, to 12,254.91.
Broader stock indicators advanced. The Standard & Poor's 500 index rose 2.39, or 0.18 percent, to 1,362.53, while the Nasdaq composite index rose 1.19, or 0.05 percent, to 2,475.97.
Bond prices rose. The yield on the benchmark 10-year Treasury note, which moves opposite its price, fell to 4.23 percent from 4.27 percent late Monday. The dollar was mixed against other major currencies, while gold prices rose.
In recent trading, light, sweet crude fell $1.11 to $133.50 on the New York Mercantile Exchange.
Declining issues narrowly outnumbered advancers on the New York Stock Exchange, where volume came to 204.1 million shares.
The Russell 2000 index of smaller companies fell 3.38, or 0.46 percent, to 737.36.
Overseas, Japan's Nikkei stock average fell 0.04 percent. In afternoon trading, Britain's FTSE 100 rose 2.08 percent, Germany's DAX index advanced 1.43 percent, and France's CAC-40 rose 0.80 percent.
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