US stocks higher as Wall Street gets back to work
05/09/2006 - 21:33:13Wall Street squeezed out a small gain today as traders got back to work from a three-day break to find oil prices retreating but little other data to guide them.
The major indexes, which all crept higher to build on three-month highs, were again subject to low volume that is not expected to return to normal until later in the week.
Investors were largely adjusting their positions while they await the Federal Reserve’s next meeting on interest rates, scheduled for September 20.
With little economic news this week, investors are likely to make few moves until they have more signals about the economy’s health. Recent reports, including housing and job claims, have indicated the economy is moderating enough to ward off future Fed rate hikes.
“We’re probably going to be within a tight trading range until we start to get some indication from companies about how the quarter is looking,” said Peter Schofield, a portfolio manager with Knott Capital. “There’s nothing clearly on the horizon, besides the Fed meeting, that could cause a big swing on the market.”
In the meantime, corporate news and oil prices are expected to be the main market drivers. Among the biggest gainers today were oil companies after the discovery of a major new oil source in the Gulf of Mexico by Chevron and its partners.
The Dow Jones industrial average added 5.13, or 0.04%, to close at 11,469.28, having changed direction several times during the session. The Dow rose 1.60% last week.
Broader stock indicators were slightly higher. The Standard & Poor’s 500 index was up 2.24, or 0.17%, at 1,313.25, and the Nasdaq composite index picked up 12.54, or 0.57%, to close at 2,205.70.
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