From Deseret News archives:
Stocks up as oil price drop eases inflation fears
Oil's retreat helped soothe some of Wall Street's worries about inflation's impact on consumer spending. Crude briefly reached a new trading high of $126.40, but investors seemed shy, for the time being at least, to add to oil's huge gain of nearly $10 last week. Light, sweet crude oil fell $1.73 to settle at $124.23 per barrel on the New York Mercantile Exchange.
"This market does seem to be reacting positively to any sort of easing we see in the energy patch," said Craig Peckham, market strategist at Jefferies & Co.
Investors also got some encouraging news about the credit crisis from London-based HSBC Holdings PLC, which said its first-quarter profits were up from a year ago although the global banking company took a $3.2 billion write-down on subprime mortgage assets in the United States. The company did echo other assessments that the U.S. was likely to fall into recession this year.
JPMorgan Chase & Co. CEO Jamie Dimon said at a conference Monday he estimates the credit market crisis is 75 percent over, but that the recession is just beginning.
Peckham said some of the buying was a natural move higher after last week's decline, in which the Dow lost 2.4 percent and the S&P 500 declined 1.81 percent.
"This market, after having had a pretty rough last week, is prone to drawing in some more value-seekers," he said.
The Dow rose 130.43, or 1.02 percent, to 12,876.31.
Broader stock indicators also rose. The Standard & Poor's 500 index advanced 15.30, or 1.10 percent, to 1,403.58, and the Nasdaq composite index rose 42.97, or 1.76 percent, to 2,488.49.
Bond prices dipped. The yield on the benchmark 10-year Treasury note, which moves opposite its price, rose to 3.80 percent from 3.78 percent late Friday. After an early strong start, the dollar ended mixed against most other major currencies, while gold prices fell.
Comments
- NASA sets Monday shuttle launch 11:53 a.m.
- WVC robberies investigated 11:41 a.m.
- Funeral today for Utah soldier 11:16 a.m.
- Vaccination clinic set in St. George 11:15 a.m.
- $47B in suspect Medicare claims 11:11 a.m.
- 3 dead in Reno helicopter crash 11:02 a.m.
- Galaxy headed to MLS Cup 10:45 a.m.
- Veteran climber dies in Himalayas 10:36 a.m.
- Slovakia beats U.S. 1-0 10:30 a.m.
- Suicide attack kills 11 in Pakistan 10:28 a.m.
- Attack meant to kill apostle
- Williams leaves, won't play tonight
- Short-handed Jazz fly past Sixers
- Can BYU root for (ick) Utah Utes?
- Man killed during 3rd I-15 crash
- Bench proves fruitful for Y.
- D-Will home for daughter
- Trial begins in toddler death
- Born of water and the spirit
- Utes excited for 'dream' game
- SLC council OKs gay rights policies
349 - Editorial: Mormons and gay rights
199 - Senators want food tax restored
162 - Will state consider gay rights law?
145 - Letters: Strange breed in Utah
129 - Utes remain silent about BCS
120 - S.L. vote pending on gay protections
113 - Can BYU root for (ick) Utah Utes?
105 - Celtics crush Jazz
104 - Pratt pleads not guilty to sex charges
103
If you are looking for a bird on the cheap, the following specials from...
Maybe someone out there can help me understand how raising the state...
The reason that won't be the case is because, unlike your teams line, our...
This freedom of speech issue is enough to make me want to remain as a private...
What is everyone talking about? Good luck next game? I could have sworn I...
yeah, TV might be rude. but springville isn't smart for trying to compare...
Thanks, Robinson, for a laugh-out-loud funny article which makes a point then...
WAC 1-0 vs the MWC this year, next week will be 2-0 for the WAC when Utah...
"Three Rivers" is an excellent program. I hope everyone will tune in!
A real man! What a pro that Mathis is! He's great! I thought Matthews played...
I wouldn't call Brown "big". Tall, maybe, but he's maybe the skinniest high...
Tobacco prevention saves lives and money.


You can be the first to comment on this story.