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Jerry Hansin 31 May 2008 World News | One Comment

US stocks mark time amid easing oil, firming dollar
Posted: 31 May 2008 0544 hrs

NEW YORK – US stocks marked time Friday after three days of gains amid easing oil prices, a firming dollar and consumer spending and income figures in line with expectations.

The Dow Jones Industrial Average fell 7.90 points (0.06 percent) to close at 12,638.32 and the tech-dominated Nasdaq increased 14.34 points (0.57 percent) to finish at 2,522.66.

The broad-market Standard & Poor’s 500 index edged up 2.12 points (0.15 percent) to 1,400.38, according to final closing figures.

Traders appeared cautious at the end of the month and ahead of the weekend in a trading week shortened by Monday’s public holiday, analysts said.

“It’s a yawner of a day on Wall Street. The stock market is in a consolidation pattern” after three days of gains, said Al Goldman, chief market strategist at Wachovia Securities.

Oil futures contracts closed higher Friday but on a weekly basis were lower than last week’s record highs above 135 dollars a barrel.

The stronger dollar was partly responsible as dollar-denominated oil became less attractive to buyers using other currencies.

Investors chewed on a US Commerce Department report showing consumer spending and incomes both rose 0.2 percent in April from March, in line with forecasts and suggesting sluggish growth in the world’s biggest economy is continuing.

Adjusted for inflation, consumer spending, the main engine of US economic activity, was unchanged from March.

“Up, or when it comes to inflation adjusted, flat, is clearly better than down. So let’s celebrate a little. Okay, that’s enough,” said Joel Naroff of Naroff Economic Advisors.

The lackluster report followed the government’s revision Thursday of first-quarter gross domestic product growth to 0.9 percent, also in line with expectations, from its initial estimate of 0.6 percent.

That upward revision showed the sluggish economy had picked up steam after growing a meager 0.6 percent in the 2007 final quarter.

Positive corporate earnings reports stirred some enthusiasm.

Computer maker Dell, which reported strong first-quarter earnings after the market close Thursday, soared 5.73 percent to 23.06 dollars, after analysts upgraded the stock and lifted price targets.

Growth in Asia and strong sales of notebook computers helped Dell beat Wall Street expectations for first-quarter sales and profit.

“Dell is beginning to see revenue growth reignite owing to its growth initiatives and expansion into the retail and indirect channel, which was reflected in market share gains in fiscal 2009,” Merrill Lynch analyst Jeff Fidacaro said in a note to clients.

Marvell Technology skyrocketed 23.30 percent to 17.36 after the semiconductor maker’s earnings solidly topped Wall Street expectations.

In the retail sector, Tiffany & Company’s stock sparkled 2.70 percent higher to 49.03 after the jewelry and luxury goods seller beat market earnings estimates and raised its outlook on sales growth, reporting sharp jumps in Asia-Pacific and European sales.

Bonds advanced. The yield on the 10-year US Treasury bond fell to 4.046 percent from 4.079 percent Thursday and that on the 30-year bond dropped to 4.707 percent from 4.765 percent. Bond yields and prices move in opposite directions.

- AFP /ls

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