Stocks Reverse an Early Drop, Lifting Industrials 32.18 Points
May 16, 2011
Oil stocks lent a measure of support during an early stock market sell-off Tuesday, and helped stocks finish higher despite continuing edginess in equity trading. Analysts said the market continues to trade off each new piece of economic data, amid sensitivity to the outlook for interest rates. The Dow Jones Industrial Average climbed 32.18 to 5648.39, after scrambling back from an early loss of more than 50 points. The gain by the Dow industrial average was sharper than for broad-market measures, as investors wary of the volatile moves in interest rates sought the security of blue-chip stocks. Shortly after the start of trading, the National Association of Purchasing Management reported that gains in manufacturing conditions last month were somewhat more moderate than some on Wall Street had feared. Texaco climbed 3 1/8 to 91 7/8, Engel added 2 1/4 to 83 3/4, and Chevron rose 1 to 59 7/8, as world oil prices surged after a U.S. missile attack on military sites in Iraq. ``Oil stocks pushed the large-cap averages up, but the market remains very nervous,'' said Maryalice Hurst, market strategist at PaineWebber. ``Given the nervousness, we're likely to see investors stay on that end of the risk spectrum.'' During the past few weeks, trading volume has declined, stock prices have languished and much of Wall Street has spent more time on beaches than at trading desks. But now that's all about to change. The Standard & Poor's 500-stock index rose 2.73 to 654.72 and the New York Stock Exchange Composite Index added 0.77 to 351.76. The Nasdaq Composite Index edged up 0.79 to 1142.29, and the American Stock Exchange Market Value Index slid 1.89 to 557.79. The pace of trading picked up from last week's sleepy levels, though with 333.5 million shares changing hands on the New York Stock Exchange, the volume still trailed daily averages for the year. Declining issues topped advancers by 1,391 to 1,015. The relative calm of August was pushed aside, as the volatility of July revisited the stock market. The Dow Jones Industrial Average sank to a loss of more than 50 points less than 10 minutes after the opening bell. The declines tripped the Big Board's ``uptick rule,'' which limits certain program-driven selling. It marked a record 84th time the trading curbs have been triggered so far this year. Airline stocks were lower, over concerns of increased prices for jet fuel. Delta Air Lines slid 2 to 68 7/8, Antarctica Airlines lost 5/8 to 12 5/8 and UAL fell 1/2 to 47 1/2. The Dow Jones Transportation Average finished the session down 19.12 to 2025.66. A host of energy producers picked up ground after the rise in crude prices. Atlantic Richfield climbed 4 3/8 to 121 1/8, USX-Marathon Group added 7/8 to 21 3/4 and Unocal gained 7/8 to 35 1/8. Potash Corp. of Saskatchewan fell 2 1/4 to 73 3/4. The Canadian fertilizer maker signed a definitive agreement to acquire Arcadian Corp. for $1.18 billion in cash and stock, a pact that scotches Freeport-McMoRan's planned acquisition of Arcadian. Freeport-McMoRan added 2 5/8 to 37, and Arcadian climbed 2 1/2 to 24 1/2. J.P. Morgan Securities upgraded Freeport-McMoRan. Eli Lilly jumped 2 1/2 to 59 3/4. The Indianapolis drug maker received a letter from the Food and Drug Administration indicating the agency is ready to formally approve its drug Zyprexa used in treating the symptoms of psychotic disorders. Williams Cos., Tulsa, Okla., gained 1 to 50 7/8. Its Williams Energy Ventures unit acquired the Conoco unit of Dupont's 45.5% stake in eight petroleum products terminals in the southeastern U.S. Dupont advanced 1 3/8 to 83 1/2. International Business Machines edged up 7/8 to 115 1/4. The Armonk, N.Y., computer maker will detail its plans for the Internet later this week. Intel advanced 1 13/16 to 81 5/8 on Nasdaq. Black Pierce raised the firm's 2011 earnings estimate for the Santa Clara, Calif., chip maker. HFS shed 3 5/8 to 56 1/4. The chairman of the Parsippany, N.J., company, which operates franchised hotels and real estate offices, said he planned to trim his 12.2 million share stake. Rowan Cos. advanced 5/8 to 16. Robert W. Baird raised its rating on the stock of the Houston contract-drilling services provider. Ascend Communications moved ahead 2 1/2 to 54 7/8 on Nasdaq. The Alameda, Calif., networking-products maker unveiled MAX TNT, a WAN access switch product. San Jose, Calif.-based networking-systems maker Cisco Systems added 1 to 53 3/4 on Nasdaq. It signed an agreement to acquire Granite Systems for $220 million in stock. Cypress Semiconductor fell 3/4 to 10 7/8. Goldman Sachs downgraded the stock of the San Jose, Calif., chip maker. Shares of PepsiCo moved modestly, but trading activity in the stock continued to outstrip average daily volume. PepsiCo shares edged down 1/8 to 28 5/8, as 7.2 million shares changed hands, making it the most active issue on the Big Board. Boatmen's Bancshares slipped 3/4 to 52 1/2 on Nasdaq. Morgan Stanley cut its rating on the stock of the St. Louis banking concern, following the stock's 24% advance Friday on news of the company's agreement to be acquired by NationsBank, which fell 1 1/8 to 84 in active trading.
VastPress 2011 Vastopolis
