US stocks gain on falling oil prices
Lower oil prices and technology news helped stocks rally today despite a legal dispute that raised questions about Johnson & Johnson’s $25bn acquisition of Guidant Corp.
Investors had little information to guide them through the session, with few third-quarter earnings reports remaining and no major economic data scheduled this week.
But news that Microsoft Corp. is in talks to buy a stake in American Online Inc. and a deal involving TiVo Inc. and Yahoo Inc. drove gains in the tech sector.
The market found some comfort in the declining price of crude oil, which sank more than one dollar a barrel as recent unusually warm weather quelled fears of a heating oil shortage this winter, although the International Energy Agency reiterated concerns about capacity.
A barrel of light crude lost 1.11 dollars to settle at 59.47 dollars on the New York Mercantile Exchange.
Bill Groenveld, head trader for vFinance Investments, said he found it surprising the market has not withdrawn given the shortage of headlines, which is evidence that a bullishsentiment remains on Wall Street.
“Over the last six months, the market has been through trials and tribulations,” Groenveld said. “But it’s really coming through with flying colours considering everything it’s been up against.”
The Dow Jones industrial average gained 55.47, or 0.53 percent, to 10,586.23.
Broader stock indicators were also higher. The Standard & Poor’s 500 index was up 2.67, or 0.22%, at 1,222.81, and the Nasdaq composite index advanced 8.81, or 0.41 percent, to 2,178.24.
