Little change for US stocks
Surging oil prices left stocks little changed today as interest rate worries also diluted Wall Street’s enthusiasm over multibillion-dollar acquisitions in the banking and newspaper sectors.
With no new economic reports from the government, investors turned their focus to the day’s two major deals: Capital One Financial Corp.’s US$14.6bn (€12.21bn) offer for North Fork Bancorp Inc. and McClatchy Co.’s US$4.5bn (€3.76bn) bid for newspaper publisher Knight Ridder Inc.
But continued nervousness about higher interest rates, oil and inflation limited Wall Street’s momentum, said Jeff Kleintop, chief investment strategist for PNC Financial Services Group.
This week’s reports on consumer price increases and retail sales will feed speculation over whether the Federal Reserve might lift rates as many as three more times, he said.
“We’re certainly looking to see how core (consumer) prices come in,” Kleintop said. “If they continue to show a bit of upward pressure, that could push up rates and affect the market.”
Crude futures jumped as anxiety about political tension in major oil-producing nations offset reports of growing US reserves. A barrel of light crude added US$1.81 (€1.51) to settle at US$61.77 (€51.65) on the New York Mercantile Exchange.
The Dow slipped 0.32 to 11,076.02. The Dow advanced as much as 40 points early in the session.
The broader stock indicators tapered earlier gains.
The Standard & Poor’s 500 index added 2.55, or 0.2%, to 1,284.13, and the Nasdaq composite index rose 4.99, or 0.22%, to 2,267.03, after losing 1.76% last week.
