Stocks inched lower Thursday afternoon, giving up an earlier rally, as financial market woes resumed and oil prices spiked more than $5 a barrel on supply disruption fears.
The Dow Jones industrial average (INDU), the Standard & Poor's 500 (SPX) index and the tech-heavy Nasdaq composite (COMP) all lost at least 0.3% with an hour left in the session.
Stocks had rallied through the mid afternoon as investors welcomed a $15 billion merger in the chemical sector and scooped up technology and other shares hit hard in Wednesday's selloff. But gains dissolved as oil priced spiked more than $5 a barrel, surging over $141, on new reports that Iran is again testing missiles and that the cease-fire in Nigeria has ended.
Stocks slumped Wednesday, with the Dow and S&P 500 hitting nearly two-year lows, as questions about Freddie Mac and Fannie Mae's ability to raise capital added to worries about credit markets and corporate profits.
Thursday brought new questions about the ability of the two mortgage lenders to stay afloat, dragging on the financial sector. Automakers continued to plummet as well, with GM hitting a 54-year low, despite CEO Rick Wagoner saying bankruptcy rumors are not accurate.
Investors remain caught between competing influences as they look for clues about the health of the economy and corporate America, said John Forelli, portfolio manager at Independence Investments.
"The drop in unemployment claims and the chemical buyout are giving a positive tone to the market, but at the same time people remain worried about Fannie Mae and Freddie Mac," he said.
The major gauges are now officially in a "bear market," which is technically defined as a drop of at least 20% off the cyclical highs - in this case, October. Forelli said that he thinks stocks have further room to fall this summer before there is a rebound late in the fall.
Market breadth was negative. On the New York Stock Exchange, losers beat winners three to two on volume of 1.11 billion shares. On the Nasdaq, decliners topped advancers seven to six on volume of 1.74 billion shares.
Fannie Mae and Freddie Mac fallout: Shares of the government lenders continued to plunge on worries about a potential collapse. Former St. Louis Fed President William Poole told Bloomberg that the companies were insolvent and may need a government bailout.
Bush administration discussions of what to do should the companies fail have reportedly been amplified in recent days, The Wall Street Journal reported. Fannie Mae (FNM, Fortune 500) lost 13% and Freddie Mac (FRE, Fortune 500) lost 23%.
Lehman Brothers (LEH, Fortune 500) lost another 20% on ongoing concerns about its solvency after it posted a $3 billion quarterly loss last month.
Wachovia (WB, Fortune 500) said it would report a quarterly loss of between $2.6 billion and $2.8 billion, prompting Moody's to put the bank's long-term debt rating on review for a downgrade.
Elsewhere in the financial services sector, AIG (AIG, Fortune 500) and PMI Group (PMI) both slipped after Moody's downgraded the companies' insurance financial strength ratings. Moody's also downgraded PMI's debt.
Meanwhile, Treasury Secretary Henry Paulson and Federal Reserve chief Ben Bernanke told Congress Thursday that legislation is needed to modernize the nation's financial system.
Wal-Mart impresses, other retail sales mixed: The world's largest retailer reported stronger-than-expected June sales, thanks in part to the economic stimulus payments. As a result, Wal-Mart (WMT, Fortune 500) said second-quarter earnings will come in ahead of forecasts. Nonetheless, shares slipped modestly. (Full story).
Discounters benefited most from the tax rebates, with Costco (COST, Fortune 500) also reporting better-than-expected June sales. Specialty retailer Children's Place (PLCE) also reported sales that topped forecasts.
But sales at Limited Brands (LTD, Fortune 500) slipped more than expected, reflecting the still-sluggish pace of spending for mall-based retailers amid a consumer spending slowdown.
The number of Americans filing new claims for unemployment fell last week, the government reported, although the number of Americans filing continuing claims rose more than expected.
Other stock movers: Dow Chemical is buying specialty chemical maker Rohm & Haas for $15.3 billion plus the assumption of debt. Shares of Dow (DOW, Fortune 500) slipped 5% Thursday, while Rohm & Haas (ROH, Fortune 500) jumped 65%. (Full story)
Shares of rival chemical company DuPont (DD, Fortune 500), a Dow component, gained modestly.
Dow stock Alcoa (AA, Fortune 500) gained 8% on reports that Chinese aluminum companies will cut back production. The aluminum maker also reported better-than-expected quarterly sales earlier this week.
Dow stock General Motors (GM, Fortune 500) slumped 8.6%, hitting a 54-year low. Fellow automaker Ford Motor (F, Fortune 500) lost 9.
General Electric (GE, Fortune 500) said it will spin off its consumer and industrial businesses, which make light bulbs and household appliances. Shares inched higher.
Market breadth turned negative. On the New York Stock Exchange, losers beat winners 8 to 7 on volume of 920 million shares. On the Nasdaq, advancers topped decliners four to three on volume of 1.41 billion shares.
Fuel prices: U.S. light crude oil for August delivery gained $5.60 to settle at $141.65 a barrel on the New York Mercantile Exchange.
The national average price for a gallon of regular unleaded gas fell to $4.104 after holding stead at a record $4.108 for three days straight, according to AAA. (Full story).
Other markets: In currency trading, the dollar fell versus the euro and rose against the yen.
In the bond market, Treasury prices fell, raising the yield on the benchmark 10-year note to 3.83% from 3.82% late Wednesday. Treasury prices and yields move in opposite directions.
COMEX gold for September delivery rose $13.40 to settle at $944.50 an ounce. To top of page
Thursday, July 10, 2008
Sunday, June 29, 2008
Gas prices rise, July 4 travel down
Retail gas and diesel prices pushed higher overnight, a daily survey by motorist group AAA showed Sunday. Continued near-record prices are expected to curtail Americans' travel plans during the July 4 holiday weekend.
The national average price for a gallon of regular gas increased seven-tenths of a cent to $4.079 from $4.072 the day before.
According to AAA, 31 states and the District of Columbia are now paying over $4.00 a gallon on average.
Alaska edged out California for the title of highest gas prices in the nation. Drivers there pay $4.611 a gallon on average, while in the golden state, a gallon of regular gasoline averages $4.584.
The third highest gas prices are in Hawaii, where a gallon of gas costs $4.436.
Missouri has the lowest gas prices. Drivers in that state pay $3.850 a gallon on average.
The survey also showed that the national average price for a gallon of diesel fuel rose two-tenths of a cent to $4.764 from $4.762 the previous day.
Cutting back on travel
AAA said it expects a decline in the number of Americans traveling during the Fourth of July holiday travel period.
The motorist group projects that 40.45 million drivers will travel during the holiday weekend. That's down 1.3% from the 41 million who traveled last year.
"Clearly gas prices are continuing to take a toll on the traveler's budget," said AAA President and CEO Robert L. Darbelnet in a statement.
Still, more than 13% of the U.S. population will be on the road this holiday weekend, according to AAA. And more than 34.2 million Americans, nearly 85% of all holiday travelers, intend to travel by automobile, a 1.2% decrease from 34.6 million people last year.
Approximately 4.54 million Americans expect to travel by airplane, down 2.3% from the 4.64 million last year. Nearly 1.7 million plan to travel by train, bus or other mode of transportation, AAA reported.
The national average price for a gallon of regular gas increased seven-tenths of a cent to $4.079 from $4.072 the day before.
According to AAA, 31 states and the District of Columbia are now paying over $4.00 a gallon on average.
Alaska edged out California for the title of highest gas prices in the nation. Drivers there pay $4.611 a gallon on average, while in the golden state, a gallon of regular gasoline averages $4.584.
The third highest gas prices are in Hawaii, where a gallon of gas costs $4.436.
Missouri has the lowest gas prices. Drivers in that state pay $3.850 a gallon on average.
The survey also showed that the national average price for a gallon of diesel fuel rose two-tenths of a cent to $4.764 from $4.762 the previous day.
Cutting back on travel
AAA said it expects a decline in the number of Americans traveling during the Fourth of July holiday travel period.
The motorist group projects that 40.45 million drivers will travel during the holiday weekend. That's down 1.3% from the 41 million who traveled last year.
"Clearly gas prices are continuing to take a toll on the traveler's budget," said AAA President and CEO Robert L. Darbelnet in a statement.
Still, more than 13% of the U.S. population will be on the road this holiday weekend, according to AAA. And more than 34.2 million Americans, nearly 85% of all holiday travelers, intend to travel by automobile, a 1.2% decrease from 34.6 million people last year.
Approximately 4.54 million Americans expect to travel by airplane, down 2.3% from the 4.64 million last year. Nearly 1.7 million plan to travel by train, bus or other mode of transportation, AAA reported.
Sunday, June 1, 2008
Mac hits record 7.8% market share in Net Applications survey
After drifting inexplicably in February, March and April — actually losing market share in two out of three months just when Macintosh sales seemed to be on fire — Mac OS X recovered smartly in the Net Applications survey issued overnight Sunday.
Apple’s (AAPL) share of the operating system market grew 5.69% in May to hit a record 7.80%, while Windows in all its flavors dropped half a point to 91.17%. That’s a record low for Microsoft (MSFT), which nonetheless still runs on 9 out of 10 computers on the Internet, as Net Applications measures it (more on its methodology below).
The iPhone’s OS market share, whch Net Applications measures separately from OS X, has temporarily leveled off, according to the report, reflecting the shortage of product as Apple cleared inventory in May and customers held off purchases in anticipation of the new 3G model. In an IDC report issued Friday, the iPhone actually lost share in the smartphone market, falling from 26.7% in the last quarter of 2007 to 19.2% in the first quarter of 2008. RIM (RIMM), meanwhile, gained share in the same period, growing from 35.1% to 44.5% on the strength of new, consumer-oriented BlackBerries.
The discrepancy between IDC’s and NetApplication’s numbers can be explained to some extent by the nature of the two surveys. IDC’s quarterly reports are sales counts, based on surveys of retail outlets. Net Applications, by contrast, collects data from the browsers of visitors — some 160 million per month — to its customers websites. As such, its findings are probably better described as a snapshot of installed base taken from a less-than-random sample. But the results are useful for indicating trends, and tend to correspond well to domestic market share as measured by more traditional methods.
Apple’s (AAPL) share of the operating system market grew 5.69% in May to hit a record 7.80%, while Windows in all its flavors dropped half a point to 91.17%. That’s a record low for Microsoft (MSFT), which nonetheless still runs on 9 out of 10 computers on the Internet, as Net Applications measures it (more on its methodology below).
The iPhone’s OS market share, whch Net Applications measures separately from OS X, has temporarily leveled off, according to the report, reflecting the shortage of product as Apple cleared inventory in May and customers held off purchases in anticipation of the new 3G model. In an IDC report issued Friday, the iPhone actually lost share in the smartphone market, falling from 26.7% in the last quarter of 2007 to 19.2% in the first quarter of 2008. RIM (RIMM), meanwhile, gained share in the same period, growing from 35.1% to 44.5% on the strength of new, consumer-oriented BlackBerries.
The discrepancy between IDC’s and NetApplication’s numbers can be explained to some extent by the nature of the two surveys. IDC’s quarterly reports are sales counts, based on surveys of retail outlets. Net Applications, by contrast, collects data from the browsers of visitors — some 160 million per month — to its customers websites. As such, its findings are probably better described as a snapshot of installed base taken from a less-than-random sample. But the results are useful for indicating trends, and tend to correspond well to domestic market share as measured by more traditional methods.
Monday, May 19, 2008
$11 million: Ferrari nets record price
A 1961 Ferrari California Spyder sold for $10,894,900 at an auction in Maranello, Italy, Saturday. It was the highest price ever paid for a vintage car at auction, according to RM Auctions and Sotheby's, the companies that organized the sale.
The previous record was set in 1990 when Sotheby's sold a 1962 Ferrari 250 GTO in Monaco for $10,756,000.
But that was a race car, not a convertible designed for driving on the street, pointed out McKeel Hagerty, president of Hagerty Insurance, a company that insures high-value collectible cars in Europe and North America.
Ferrari race cars have traditionally sold for much higher figures than the company's street cars, Hagerty said.
"Ferrari 250 GTO's are now selling privately for twice that," he said
Prior to the auction, RM Auctions itself had estimated the value of the 1961 California Spyder at less than half of what it ultimately sold for. The car was one of 56 ever built, according to RM.
The high price paid for this car shows strong demand for vintage Ferraris in Europe, Hagerty said. In recent months, Ferraris have been selling privately between collectors for amounts far exceeding $11 million, he said, but noted again that those have mainly been race cars.
The record-breaking black convertible had been owned by gravel-voiced tough-guy actor James Coburn. He bought the car in 1964, according to RM Auctions, shortly after completing "The Great Escape." It is not clear when Coburn sold the car. The actor died in 2002. The car was purchased by British television and radio personality Chris Evans.
"I think it just shows that there's strong demand," Hagerty said, "because you don't get to that type of number without strong demand."
The previous record was set in 1990 when Sotheby's sold a 1962 Ferrari 250 GTO in Monaco for $10,756,000.
But that was a race car, not a convertible designed for driving on the street, pointed out McKeel Hagerty, president of Hagerty Insurance, a company that insures high-value collectible cars in Europe and North America.
Ferrari race cars have traditionally sold for much higher figures than the company's street cars, Hagerty said.
"Ferrari 250 GTO's are now selling privately for twice that," he said
Prior to the auction, RM Auctions itself had estimated the value of the 1961 California Spyder at less than half of what it ultimately sold for. The car was one of 56 ever built, according to RM.
The high price paid for this car shows strong demand for vintage Ferraris in Europe, Hagerty said. In recent months, Ferraris have been selling privately between collectors for amounts far exceeding $11 million, he said, but noted again that those have mainly been race cars.
The record-breaking black convertible had been owned by gravel-voiced tough-guy actor James Coburn. He bought the car in 1964, according to RM Auctions, shortly after completing "The Great Escape." It is not clear when Coburn sold the car. The actor died in 2002. The car was purchased by British television and radio personality Chris Evans.
"I think it just shows that there's strong demand," Hagerty said, "because you don't get to that type of number without strong demand."
S&P won’t downgrade Fannie
There was some big news in the housing market Monday afternoon. Negotiators in the Senate Banking Committee agreed on a deal that will expand the Federal Housing Administration’s power to refinance troubled mortgages and give the companies a new, more powerful regulator. Many market players, such as BlackRock (BLK) chief Larry Fink, have held out hope that a legislative response will ease the pain of the housing bust. While this plan won’t solve the housing problem in itself, it could offer another half-step on the long road toward a solution.
“The bill addresses the root of our current economic problems - the foreclosure crisis - by creating a voluntary initiative at no estimated cost to taxpayers which will help Americans keep their homes,” Sen. Christopher Dodd said in a statement, Reuters reported. The plan is due to come to a vote before the Senate banking panel tomorrow.
Rating agency S&P also took Fannie Mae’s (FNM) debt and preferred stock ratings off watch for a possible downgrade, though it cut its risk-to-the-government rating to A-plus from double-A-minus and maintained a negative outlook on most of its ratings. “Fannie Mae is facing the most challenging housing and mortgage cycle in more than three decades, and at a time when its core earnings are weakened both from higher credit-related expenses and significant spread widening on both agency and nonagency mortgage-backed securities,” S&P wrote. “Given the highly stressed housing and mortgage markets, it is very unlikely that the outlook would return to stable before 2009.”
“The bill addresses the root of our current economic problems - the foreclosure crisis - by creating a voluntary initiative at no estimated cost to taxpayers which will help Americans keep their homes,” Sen. Christopher Dodd said in a statement, Reuters reported. The plan is due to come to a vote before the Senate banking panel tomorrow.
Rating agency S&P also took Fannie Mae’s (FNM) debt and preferred stock ratings off watch for a possible downgrade, though it cut its risk-to-the-government rating to A-plus from double-A-minus and maintained a negative outlook on most of its ratings. “Fannie Mae is facing the most challenging housing and mortgage cycle in more than three decades, and at a time when its core earnings are weakened both from higher credit-related expenses and significant spread widening on both agency and nonagency mortgage-backed securities,” S&P wrote. “Given the highly stressed housing and mortgage markets, it is very unlikely that the outlook would return to stable before 2009.”
Sunday, May 18, 2008
Week 3 of rebates: $13.5 billion sent out
The Treasury Department said Friday it sent out more than 15 million economic stimulus payments this week, totaling more than $13.5 billion, in an effort to boost the nation's spending power.
The checks are part of the federal government's plan to reinvigorate the slowing economy by encouraging consumer spending. To date, The treasury has distributed more than 45.4 million stimulus payments, worth a total of $40.8 billion.
Treasury spokesman Andrew DeSouza said the "vast majority" of the stimulus checks will be out by mid-summer, with the remainder being distributed by the end of the year. "We're on track," he said.
The first payments began distribution on April 28. Last week, the Treasury sent out more than 22 million checks totaling about $20 billion.
Overall, the Treasury Department plans to send $100 billion to American households.
To qualify for a stimulus payment, individuals and households must file an income tax return.
Single taxpayers with adjusted gross income of less than $75,000 last year, as well as joint filers with adjusted gross income of less than $150,000, are eligible for a rebate.
Rebate checks: How to spend 'em
That works out to more than 130 million households, including at least 117 million low- and middle-income families, 20 million senior citizens living on Social Security and 250,000 disabled veterans.
For a single filer, the minimum payment is generally $300, and the maximum payment about $600. For married taxpayers filing jointly, the minimum payment is $600 and the maximum is $1,200. Taxpayers with children will receive an additional $300 per child under 17.
Separately, Treasury Secretary Henry Paulson said Friday that the checks will help put the country back on the path to economic growth.
"This fiscal stimulus will provide support to the economy as we weather the housing correction, capital markets turmoil and higher energy and food prices," Paulson said while speaking at a luncheon in Washington.
Opponents of the plan argue that the payments will not have the desired impact because most of the recipients will use the checks to pay off debts or purchase gas.
Critics also say the one-time payment is a short-term fix that does not address the underlying problems affecting the economy.
The checks are part of the federal government's plan to reinvigorate the slowing economy by encouraging consumer spending. To date, The treasury has distributed more than 45.4 million stimulus payments, worth a total of $40.8 billion.
Treasury spokesman Andrew DeSouza said the "vast majority" of the stimulus checks will be out by mid-summer, with the remainder being distributed by the end of the year. "We're on track," he said.
The first payments began distribution on April 28. Last week, the Treasury sent out more than 22 million checks totaling about $20 billion.
Overall, the Treasury Department plans to send $100 billion to American households.
To qualify for a stimulus payment, individuals and households must file an income tax return.
Single taxpayers with adjusted gross income of less than $75,000 last year, as well as joint filers with adjusted gross income of less than $150,000, are eligible for a rebate.
Rebate checks: How to spend 'em
That works out to more than 130 million households, including at least 117 million low- and middle-income families, 20 million senior citizens living on Social Security and 250,000 disabled veterans.
For a single filer, the minimum payment is generally $300, and the maximum payment about $600. For married taxpayers filing jointly, the minimum payment is $600 and the maximum is $1,200. Taxpayers with children will receive an additional $300 per child under 17.
Separately, Treasury Secretary Henry Paulson said Friday that the checks will help put the country back on the path to economic growth.
"This fiscal stimulus will provide support to the economy as we weather the housing correction, capital markets turmoil and higher energy and food prices," Paulson said while speaking at a luncheon in Washington.
Opponents of the plan argue that the payments will not have the desired impact because most of the recipients will use the checks to pay off debts or purchase gas.
Critics also say the one-time payment is a short-term fix that does not address the underlying problems affecting the economy.
Stocks recover poise after slipping
Stocks were mixed Friday, with the S&P 500 managing to eke out a multi-month high, despite record oil and gas prices and a weak consumer sentiment index.
The Dow Jones industrial average (INDU) lost a few points. The broader Standard & Poor's 500 (SPX) index inched higher, ending at its highest point since Jan. 3. The Nasdaq composite (COMP) slipped 0.2%.
Stocks rose through most of the week, with the S&P 500 ending Thursday's session at a more than 4-month high.
But after such a run, stocks retreated a bit Friday, as record commodity prices revived fears about how inflation will hit an already weakened consumer and U.S. economy. That runup overshadowed any relief about a better-than-expected housing market report.
"We had some decent news this morning on the housing front, and the economic and earnings news all week hasn't been bad," said Ron Kiddoo, chief investment officer at Cozad Asset Management. "But you've got oil up a couple of dollars today and it's also a Friday, so you're seeing a little selling."
Economic news: April new-home construction rose to a seasonally adjusted annual rate of 1,032,000, the government said. That topped economists' forecasts, thanks to apartment construction. But the single-family housing start measure, considered to be key, fell to another 17-year low.
Building permits rose to a seasonally adjusted annual rate of 978,000, also topping forecasts. (Full story).
The University of Michigan's consumer sentiment index for May fell to 59.5 from 62.6 in the previous month, versus forecasts for a drop to 62.
Treasury Secretary Henry Paulson, speaking Friday afternoon, said he expects to see the pace of U.S. economic growth pick up by the end of the year.
Meanwhile, the United Nations warned the world economy could see a severe downturn, with growth of just 1.8% expected this year, as a result of the U.S. housing and financial market bust. (Full story).
Company news: General Electric (GE, Fortune 500) said it is looking to get out of the appliance business, confirming reports Thursday that speculated a sale price in the $6 billion range. (Full story).
Yahoo responded late Thursday to activist shareholder Carl Icahn's plan to unseat the Internet firm's board and push through a deal with Microsoft (MSFT, Fortune 500), essentially holding its ground. Yahoo (YHOO, Fortune 500) shares were barely changed Friday. (Full story).
A number of retailers reported better-than-expected earnings, including Abercrombie & Fitch (ANF), Nordstrom (JWN, Fortune 500) and Kohl's (KSS, Fortune 500). Abercrombie shares were flat, Nordstrom shares rose and Kohl's shares fell.
On the upside, the spike in oil prices boosted oil services stocks, including Exxon Mobil (XOM, Fortune 500), Chevron (CVX, Fortune 500) and Marathon Oil (MRO, Fortune 500).
The Amex Oil index jumped 2.7%.
Market breadth was mixed. On the New York Stock Exchange, winners beat losers on volume of 1.31 billion shares. On the Nasdaq, decliners beat advancers 4-to-3 as 2.29 billion shares changed hands.
Commodity prices: U.S. light crude oil for June delivery rallied $2.17 to close at a record $126.29 a barrel on the NYMEX, after hitting an all-time electronic trading high of $127.82 earlier. Prices briefly came off the highs after the United States said it will suspend shipments to the Strategic Oil Reserves, starting in July. However, analysts say the move will have little impact on oil and gas prices.
The national average price for a gallon of regular unleaded gas rose to a record $3.787 from $3.776 the previous day, according to AAA. It was the 9th record in a row.
COMEX gold for August delivery rose $20 to settle at $904.10 an ounce.
Other markets: The dollar fell versus the euro and yen.
Treasury prices were little changed, with the yield on the 10-year note at 3.84%, roughly where it stood late Thursday after having fluctuated through the session. Bond prices and yields move in opposite directions.
The Dow Jones industrial average (INDU) lost a few points. The broader Standard & Poor's 500 (SPX) index inched higher, ending at its highest point since Jan. 3. The Nasdaq composite (COMP) slipped 0.2%.
Stocks rose through most of the week, with the S&P 500 ending Thursday's session at a more than 4-month high.
But after such a run, stocks retreated a bit Friday, as record commodity prices revived fears about how inflation will hit an already weakened consumer and U.S. economy. That runup overshadowed any relief about a better-than-expected housing market report.
"We had some decent news this morning on the housing front, and the economic and earnings news all week hasn't been bad," said Ron Kiddoo, chief investment officer at Cozad Asset Management. "But you've got oil up a couple of dollars today and it's also a Friday, so you're seeing a little selling."
Economic news: April new-home construction rose to a seasonally adjusted annual rate of 1,032,000, the government said. That topped economists' forecasts, thanks to apartment construction. But the single-family housing start measure, considered to be key, fell to another 17-year low.
Building permits rose to a seasonally adjusted annual rate of 978,000, also topping forecasts. (Full story).
The University of Michigan's consumer sentiment index for May fell to 59.5 from 62.6 in the previous month, versus forecasts for a drop to 62.
Treasury Secretary Henry Paulson, speaking Friday afternoon, said he expects to see the pace of U.S. economic growth pick up by the end of the year.
Meanwhile, the United Nations warned the world economy could see a severe downturn, with growth of just 1.8% expected this year, as a result of the U.S. housing and financial market bust. (Full story).
Company news: General Electric (GE, Fortune 500) said it is looking to get out of the appliance business, confirming reports Thursday that speculated a sale price in the $6 billion range. (Full story).
Yahoo responded late Thursday to activist shareholder Carl Icahn's plan to unseat the Internet firm's board and push through a deal with Microsoft (MSFT, Fortune 500), essentially holding its ground. Yahoo (YHOO, Fortune 500) shares were barely changed Friday. (Full story).
A number of retailers reported better-than-expected earnings, including Abercrombie & Fitch (ANF), Nordstrom (JWN, Fortune 500) and Kohl's (KSS, Fortune 500). Abercrombie shares were flat, Nordstrom shares rose and Kohl's shares fell.
On the upside, the spike in oil prices boosted oil services stocks, including Exxon Mobil (XOM, Fortune 500), Chevron (CVX, Fortune 500) and Marathon Oil (MRO, Fortune 500).
The Amex Oil index jumped 2.7%.
Market breadth was mixed. On the New York Stock Exchange, winners beat losers on volume of 1.31 billion shares. On the Nasdaq, decliners beat advancers 4-to-3 as 2.29 billion shares changed hands.
Commodity prices: U.S. light crude oil for June delivery rallied $2.17 to close at a record $126.29 a barrel on the NYMEX, after hitting an all-time electronic trading high of $127.82 earlier. Prices briefly came off the highs after the United States said it will suspend shipments to the Strategic Oil Reserves, starting in July. However, analysts say the move will have little impact on oil and gas prices.
The national average price for a gallon of regular unleaded gas rose to a record $3.787 from $3.776 the previous day, according to AAA. It was the 9th record in a row.
COMEX gold for August delivery rose $20 to settle at $904.10 an ounce.
Other markets: The dollar fell versus the euro and yen.
Treasury prices were little changed, with the yield on the 10-year note at 3.84%, roughly where it stood late Thursday after having fluctuated through the session. Bond prices and yields move in opposite directions.
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