Exxon Mobile (XOM) Drowns Out Bernanke
U.S. stocks rose modestly on Tuesday as energy shares advanced on higher oil prices and overshadowed a warning on the risks of inflation from Federal Reserve Chairman Ben Bernanke that reduced hopes of an interest-rate cut any time soon. Shares of Exxon Mobil Corp.(XOM.N: Quote, Profile, Research), the biggest publicly traded oil company, rose 2.3 percent, or $1.69, to $74.16 as the price of U.S. crude oil advanced 1.1 percent on forecasts of colder weather in the United States. Bernanke said in a speech the U.S. economy is poised to expand at a moderate rate but that risks of higher inflation still remain. In addition to Bernanke's comments, Philadelphia Federal Reserve President Charles Plosser said U.S. interest rates may not be high enough to quell inflation. Stocks moved between positive and negative territory throughout the session, driven by mixed economic data. Reports showed unexpectedly pronounced weakness in durable goods orders and consumer confidence, but surprising growth in the battered housing sector. Lingering concerns about the dollar's recent sell-off also somewhat limited gains, traders said. The dollar's recent drop has hurt demand for U.S. investments, causing the three major U.S. stock indexes to register their worst day in months on Monday. Exxon Mobil's stock gave the biggest boost to both the blue-chip Dow average and the broad S&P 500. Shares of other large energy companies, including Chevron Corp. (CVX.N: Quote, Profile, Research), also rose and bolstered the S&P 500. Chevron's stock gained 1.6 percent, or $1.13, to $69.88 on the NYSE. Interest-rate-sensitive shares such as Caterpillar Inc. (CAT.N: Quote, Profile, Research) fell. The heavy equipment maker was a drag on the Dow, with its stock losing 0.6 percent, or 37 cents, to $61.60. On the Nasdaq, shares of Apple Computer Inc.(AAPL.O: Quote, Profile, Research) climbed 2.5 percent, or $2.27, to $91.81 after UBS raised its price target on the company's stock. Shares of Cisco Systems Inc. (CSCO.O: Quote, Profile, Research) rose 4.8 percent, or $1.23, to $27.03, following a 3.9 percent drop on Monday. But other technology shares fell, including Qualcomm Inc. (QCOM.O: Quote, Profile, Research) and Microsoft Corp.(MSFT.O: Quote, Profile, Research). Qualcomm was down 1.7 percent, or 60 cents, at $35.85, while Microsoft fell 0.3 percent, or 9 cents, to $29.39. Both trade on the Nasdaq. Volume was active on the NYSE, where about 1.60 billion shares changed hands, slightly below last year's daily average of 1.61 billion. On Nasdaq, about 2.03 billion shares traded, above last year's daily average of 1.80 billion. Advancing stocks outnumbered declining ones by a ratio of about 2 to 1 on the NYSE and about 8 to 7 on Nasdaq.
Source: Reuters.com
posted by Stock Administrator @ 11:26 PM
Exxon Mobile (XOM) Drowns Out Bernanke
U.S. stocks rose modestly on Tuesday as energy shares advanced on higher oil prices and overshadowed a warning on the risks of inflation from Federal Reserve Chairman Ben Bernanke that reduced hopes of an interest-rate cut any time soon. Shares of Exxon Mobil Corp.(XOM.N: Quote, Profile, Research), the biggest publicly traded oil company, rose 2.3 percent, or $1.69, to $74.16 as the price of U.S. crude oil advanced 1.1 percent on forecasts of colder weather in the United States. Bernanke said in a speech the U.S. economy is poised to expand at a moderate rate but that risks of higher inflation still remain. In addition to Bernanke's comments, Philadelphia Federal Reserve President Charles Plosser said U.S. interest rates may not be high enough to quell inflation. Stocks moved between positive and negative territory throughout the session, driven by mixed economic data. Reports showed unexpectedly pronounced weakness in durable goods orders and consumer confidence, but surprising growth in the battered housing sector. Lingering concerns about the dollar's recent sell-off also somewhat limited gains, traders said. The dollar's recent drop has hurt demand for U.S. investments, causing the three major U.S. stock indexes to register their worst day in months on Monday. Exxon Mobil's stock gave the biggest boost to both the blue-chip Dow average and the broad S&P 500. Shares of other large energy companies, including Chevron Corp. (CVX.N: Quote, Profile, Research), also rose and bolstered the S&P 500. Chevron's stock gained 1.6 percent, or $1.13, to $69.88 on the NYSE. Interest-rate-sensitive shares such as Caterpillar Inc. (CAT.N: Quote, Profile, Research) fell. The heavy equipment maker was a drag on the Dow, with its stock losing 0.6 percent, or 37 cents, to $61.60. On the Nasdaq, shares of Apple Computer Inc.(AAPL.O: Quote, Profile, Research) climbed 2.5 percent, or $2.27, to $91.81 after UBS raised its price target on the company's stock. Shares of Cisco Systems Inc. (CSCO.O: Quote, Profile, Research) rose 4.8 percent, or $1.23, to $27.03, following a 3.9 percent drop on Monday. But other technology shares fell, including Qualcomm Inc. (QCOM.O: Quote, Profile, Research) and Microsoft Corp.(MSFT.O: Quote, Profile, Research). Qualcomm was down 1.7 percent, or 60 cents, at $35.85, while Microsoft fell 0.3 percent, or 9 cents, to $29.39. Both trade on the Nasdaq. Volume was active on the NYSE, where about 1.60 billion shares changed hands, slightly below last year's daily average of 1.61 billion. On Nasdaq, about 2.03 billion shares traded, above last year's daily average of 1.80 billion. Advancing stocks outnumbered declining ones by a ratio of about 2 to 1 on the NYSE and about 8 to 7 on Nasdaq.
Source: Reuters.com
Source: Reuters.com
posted by Stock Administrator @ 11:26 PM
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